Heron Therapeutics (HRTX) AI Stock Analysis

• Market Cap: $292.92M
• Dividend Yield: N/A
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: 12.43%
• EPS Growth: 91.67%
• Country: US
• Employees: 122
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): 0.01
• Shares Outstanding: 152,563,630
• 10 Day Avg. Volume: 1,892,375
• 30 Day Avg. Volume: 1,841,315
• PEG Ratio: -0.51
• Price to Book (P/B): -10.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.33
• Price Target Upside: 238.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 50 Neutral
• Price Target: $2.00 ▲( 6.95% Upside)

Heron Therapeutics' overall stock score reflects significant financial challenges, including high leverage and profitability issues, despite revenue growth. Weak technical indicators and a negative P/E ratio further weigh on the score. Positive factors include an optimistic earnings call and strategic executive appointment, though future risks from competition and potential revenue impacts from patent settlements remain concerns.

Positive Factors

Earnings Guidance

HRTX shares reacted positively due to strength of the top-line and the increase in 2025 adjusted EBITDA guidance range.

Patent Litigation

The court decision is a significant positive for HRTX that should eliminate the threat of a potential near-term generic Cinvanti launch.

Negative Factors

Financial Overhang

There is a financial overhang associated with the 2026 convertible notes, expected to be addressed in 2025.

Product Performance

The main disappointment was the CINV franchise, especially Cinvanti, which ticked down due to what appears to be quarterly fluctuations.

Heron Therapeutics Business Overview & Revenue Model

Company Description

Heron Therapeutics, Inc., a biotechnology company, engages in developing treatments to address unmet patient needs. The company's product candidates utilize its proprietary Biochronomer, a drug delivery technology, which delivers therapeutic levels of a range of short-acting pharmacological agents over a period from days to weeks with a single administration. It offers SUSTOL (granisetron), an extended-release injection for the prevention of acute and delayed nausea and vomiting associated with moderately emetogenic chemotherapy, or anthracycline and cyclophosphamide combination chemotherapy regimens; and CINVANTI, an intravenous formulation of aprepitant, a substance P/neurokinin-1 receptor antagonist for the prevention of acute and delayed nausea and vomiting associated with highly emetogenic cancer chemotherapy, as well as nausea and vomiting associated with moderately emetogenic cancer chemotherapy. The company is also developing ZYNRELEF, a dual-acting local anesthetic that delivers a fixed-dose combination of the local anesthetic bupivacaine and a low dose of the nonsteroidal anti-inflammatory drug meloxicam; HTX-019, an investigational agent for the prevention of postoperative nausea and vomiting; and HTX-034 for postoperative pain management, as well as is in Phase Ib/II clinical study in patients undergoing bunionectomy. The company was formerly known as A.P. Pharma, Inc. and changed its name to Heron Therapeutics, Inc. in January 2014. Heron Therapeutics, Inc. was founded in 1983 and is headquartered in San Diego, California.

How the Company Makes Money

Heron Therapeutics generates revenue through the sale of its pharmaceutical products, primarily targeting hospitals, clinics, and healthcare providers. The company's key revenue streams come from the commercialization of its approved drugs, Sustol and Cinvanti, which are used to manage CINV, and Zynrelef, an extended-release local anesthetic for postoperative pain management. Heron Therapeutics also engages in partnerships and collaborations to enhance its market reach and may receive milestone payments and royalties as part of these agreements. Additionally, the company's research and development efforts are focused on expanding its product portfolio, which could lead to new revenue opportunities in the future.

Heron Therapeutics Financial Statement Overview

Summary

Heron Therapeutics demonstrates consistent revenue growth and improved gross margins but struggles with profitability, high leverage, and negative equity, presenting financial risks.

Income Statement

Heron Therapeutics shows consistent revenue growth, particularly a 13.6% increase from 2023 to 2024. However, the company struggles with profitability, reflected in negative EBIT and net profit margins. The gross profit margin improved to 73.2% in 2024 from 48.7% in 2023, indicating better cost management. The persistent losses and negative margins weigh on the financial health.

Balance Sheet

The balance sheet reflects financial instability with negative stockholders' equity and a high debt-to-equity ratio, indicating significant leverage and financial risk. The equity ratio is negative due to the accumulated deficit, which undermines financial stability and limits future financing options.

Cash Flow

Heron Therapeutics has negative free cash flow and operating cash flow, although there is a notable improvement in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is negative, reflecting a cash burn that could pose liquidity challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
144.28M	127.04M	107.67M	86.35M	88.64M
	Gross Profit
105.64M	61.94M	52.80M	40.33M	52.45M
	EBIT
-11.53M	-110.61M	-174.66M	-217.83M	-228.16M
	EBITDA
-5.06M	-103.79M	-176.66M	-215.25M	-222.53M
	Net Income Common Stockholders
-13.58M	-110.56M	-134.52M	-217.66M	-224.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.28M	80.41M	84.85M	157.58M	208.49M
	Total Assets
233.15M	222.51M	250.95M	305.71M	353.56M
	Total Debt
177.76M	179.63M	157.48M	159.50M	24.61M
	Net Debt
151.96M	150.95M	142.11M	68.95M	-80.53M
	Total Liabilities
266.80M	256.48M	237.38M	228.14M	117.06M
	Stockholders Equity
-33.65M	-33.97M	13.57M	77.57M	236.49M
Cash Flow		Free Cash Flow
-24.23M	-60.33M	-148.74M	-206.38M	-191.63M
	Operating Cash Flow
-22.53M	-58.79M	-146.91M	-203.35M	-184.82M
	Investing Cash Flow
18.71M	18.00M	-3.32M	32.73M	208.96M
	Financing Cash Flow
940.00K	54.11M	75.06M	156.03M	9.11M

Heron Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRTX, the sentiment is Negative. The current price of 1.87 is below the 20-day moving average (MA) of 2.11, below the 50-day MA of 2.14, and above the 200-day MA of 1.86, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.14 is Neutral, neither overbought nor oversold. The STOCH value of 34.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HRTX.

Heron Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.14B	3.06	-43.57%	2.81%	16.81%	-0.12%
HRTX	50 Neutral	$292.92M	―	40.36%	―	12.43%	91.67%
STIM	49 Neutral	$282.37M	―	-152.14%	―	22.16%	-37.60%
UPB	48 Neutral	$491.14M	―		―	―	―
TECX	42 Neutral	$458.60M	―	-30.10%	―	―	-343.40%
ZBIO	38 Underperform	$480.26M	―	-115.47%	―	―	―
ALLO	36 Underperform	$253.73M	―	-59.60%	―	-100.00%	31.43%

Heron Therapeutics Corporate Events

Heron Therapeutics Settles Patent Dispute with Mylan

On May 6, 2025, Heron Therapeutics announced a settlement agreement with Mylan Pharmaceuticals to resolve patent litigations concerning CINVANTI® and APONVIE® injectable emulsions in the U.S. District Court for the District of Delaware. As part of the settlement, Heron granted Mylan a license to market generic versions of these products in the U.S. starting June 1, 2032, or earlier under certain conditions. The litigations were initiated by Heron in response to Mylan’s applications for FDA approval of generic versions before the expiration of Heron’s patents in 2035. This agreement will lead to the dismissal of the pending litigations, potentially impacting Heron’s market exclusivity and future revenue streams.

Heron Therapeutics Appoints Mark Hensley as COO

On April 28, 2025, Heron Therapeutics announced the appointment of Mark Hensley as Chief Operating Officer. Mr. Hensley, who has over fifteen years of experience in the pharmaceutical industry, previously held senior leadership roles at Veloxis Pharmaceuticals. His appointment is expected to play a pivotal role in Heron’s growth, with his extensive operational and leadership experience ensuring efficiency and compliance as the company advances its strategic priorities. Mr. Hensley’s compensation includes a base salary, a cash bonus, and inducement awards in the form of stock options and restricted stock units, which are designed to align his interests with the company’s performance goals.