5 Most Shorted Stocks to Watch in July

4. Heron Therapeutics, Inc. (NASDAQ:HRTX)

Float Shorted: 50.38%

Number of Hedge Fund Holders: 20

Heron Therapeutics, Inc. (NASDAQ:HRTX) is a San Diego, California-based commercial-stage biotech company producing therapies related to nausea and postsurgical analgesia.

On June 30, Heron Therapeutics, Inc. (NASDAQ:HRTX) initiated a cost reduction plan to address the changing market dynamics. The company will reduce its employee headcount by 34%. The restructuring plan will result in an annual savings of $43 million. The majority of the reduction in the employee headcount will come from the research and development (R&D) department, which is working on the label expansion for Zynrelef.

Zynrelef is a non-opioid painkiller launched by Heron Therapeutics, Inc. (NASDAQ:HRTX) in July 2021. The drug failed to garner sufficient commercial momentum and had a net revenue contribution of lower than even $1 million in the fourth quarter of 2021. Short-sellers are betting on the failure of the drug to become a growth driver for Heron Therapeutics, Inc. (NASDAQ:HRTX) in the future.

D E Shaw increased their holding in Heron Therapeutics, Inc. (NASDAQ:HRTX) by 51% during the first quarter of 2022.