What happened

Shares of Heron Therapeutics (HRTX 1.32%) were jumping 7.3% as of 3:08 p.m. EDT on Monday after rising as much as 13% earlier in the day. The gain came after the drugmaker provided its first-quarter update Monday morning.

So what

Heron announced Q1 revenue of $20 million, down 21% year over year. It reported a net loss of $52.6 million, or $0.58 per share. The average analysts' estimate projected Q1 revenue of $25.7 million and a loss of $0.57 per share.

Test tubes on rack with increasingly higher levels of green liquid from left to right and a green line with an arrow in the background sloping upward

Image source: Getty Images.

Why did the biotech stock move higher with Heron missing both top- and bottom-line estimates? The company thinks that the worst is over for Cinvanti, which is used to treat chemotherapy-induced nausea and vomiting. Heron signed a big multiyear contract for the drug that should enable it to grow market share throughout the rest of this year and beyond.

Now what

The U.S. Food and Drug Administration (FDA) is scheduled to announce its approval decision for HTX-011 in managing post-operative pain on May 12. Heron CEO Barry Quart said that the company is preparing for a commercial launch of the drug in the U.S.