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Heron Therapeutics
(NASDAQ:HRTX)
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Rating:44Neutral
Price Target:
$0.48
▲(5.22% Upside)
Action:Reiterated
Date:06/26/26
The score is held down primarily by weak financial quality (ongoing losses and negative cash flow) combined with a highly leveraged balance sheet and notable event risk (Nasdaq bid-price deficiency and patent invalidation decision). Technicals reinforce the caution due to a strong downtrend, while the earnings call is a relative positive with maintained guidance and improving product momentum, partially offsetting these risks.
Positive Factors
ZYNRELEF adoption & distributor program
Rapid, repeatable adoption driven by a targeted distributor incentive program shows scalable commercial execution. Expanding targeted accounts by 38% and demonstrated 111% unit growth indicate durable account penetration and a pathway to sustained procedure-level revenue growth over coming quarters.
Negative Factors
High leverage / thin equity
Extremely thin equity versus material debt creates persistent refinancing and dilution risk. Limited balance-sheet flexibility constrains investment options and raises the likelihood management must access capital markets or restructure, which can impair long-term strategic execution and shareholder value.
Read all positive and negative factors
Positive Factors
Negative Factors
ZYNRELEF adoption & distributor program
Rapid, repeatable adoption driven by a targeted distributor incentive program shows scalable commercial execution. Expanding targeted accounts by 38% and demonstrated 111% unit growth indicate durable account penetration and a pathway to sustained procedure-level revenue growth over coming quarters.
Read all positive factors
Heron Therapeutics Key Performance Indicators (KPIs)
Any
Net Sales by Segment
Breaks down Heron’s revenue by product line, therapeutic area, or geography to show which drugs and markets are driving growth or creating concentration risk. For a company with a small commercial portfolio, segment-level sales reveal whether recent launches, pricing, and reimbursement are gaining traction, highlight dependence on any single product or region, and flag where weaker demand or payer pressure could meaningfully affect top-line growth and margins.
Breaks down Heron’s revenue by product line, therapeutic area, or geography to show which drugs and markets are driving growth or creating concentration risk. For a company with a small commercial portfolio, segment-level sales reveal whether recent launches, pricing, and reimbursement are gaining traction, highlight dependence on any single product or region, and flag where weaker demand or payer pressure could meaningfully affect top-line growth and margins.
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The Fly
The FlyHeron Therapeutics (HRTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$93.92M
Dividend YieldN/A
Average Volume (3M)3.06M
Price to Earnings (P/E)―
Beta (1Y)1.52
Revenue Growth1.48%
EPS Growth-244.25%
CountryUS
Employees128
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.18
Shares Outstanding189,279,370
10 Day Avg. Volume2,664,236
30 Day Avg. Volume3,059,040
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)15.12
Price to Sales (P/S)1.40
P/FCF Ratio-7.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$2.00Price Target Upside334.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$165.66M
Heron Therapeutics Business Overview & Revenue Model
Company Description
Heron Therapeutics, Inc. is a biotechnology firm dedicated to creating innovative therapies for critical patient requirements. The company leverages its proprietary Biochronomer drug delivery platform, an advanced system that enables the controlle...
How the Company Makes Money
Heron Therapeutics primarily makes money by selling its FDA-approved products to healthcare providers and institutions through pharmaceutical distribution channels, with net product revenue recognized from these sales (net of items such as wholesa...
Heron Therapeutics Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call struck an overall positive tone: despite a weather-driven Q1 setback and temporary margin/EBITDA pressure, commercial momentum is clear across key products (ZYNRELEF, APONVIE, CINVANTI) with strong YoY demand growth, successful distributor incentive programs (IGNITE), clinical guideline endorsement for APONVIE, planned sales force expansions, and maintained full-year guidance. Management attributes most weaknesses to external, temporary factors and provided timelines for margin normalization and recovery, supporting confidence in achieving 2026 objectives.Positive Updates
Total Net Sales and Monthly Recovery
Q1 net product sales of $34.7 million with March recovering to over $15 million, signaling a strong sequential rebound after early-quarter disruption.
Negative Updates
Severe Weather and Seasonal Headwinds
Two weeks of severe weather early in Q1 compounded normal seasonal co-pay/insurance headwinds, making January the most difficult month since the CEO joined and contributing to a high single-digit decline in surgical volumes versus Q4.
Read all updates
Q1-2026 Updates
Positive
Negative
Total Net Sales and Monthly Recovery
Q1 net product sales of $34.7 million with March recovering to over $15 million, signaling a strong sequential rebound after early-quarter disruption.
Read all positive updates
Company Guidance
Heron reaffirmed full-year 2026 guidance of net product sales of $173–$183 million and adjusted EBITDA of $10–$20 million, despite Q1 seasonality and weather headwinds that produced Q1 net revenues of $34.7 million, a gross margin of 69% (below the typical low‑to‑mid‑70s) and adjusted EBITDA of negative $0.727 million; March recovered to over $15 million in net sales, supporting their outlook. Management expects temporary gross‑margin pressure from higher‑cost secondary CINVANTI supply (≈3x batch cost) to clear over the next two quarters, returning margins to the mid‑70% range and adjusted EBITDA to positive. Key commercial drivers cited to achieve guidance include ZYNRELEF demand unit growth (22% YoY; Q1 revenue $10.2M; IGNITE 1.0 drove ~111% unit growth and IGNITE 2.0 expands targeted accounts 38% to 3,109), APONVIE demand growth (≈68% YoY; Q1 revenue $3.4M; permanent J‑code active April 1; P&T in 1,903 accounts covering ~5.8M procedures), and CINVANTI stability (Q1 sales $20.5M; 25% NK1 exit share; ~ $10M annualized new‑account opportunity), plus planned sales‑force expansions in Q3.Heron Therapeutics Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
24
Negative
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 150.71M | 154.90M | 144.28M | 127.04M | 107.67M | 86.35M |
| Gross Profit | 107.18M | 113.56M | 105.64M | 61.94M | 52.80M | 40.33M |
| EBITDA | -24.12M | -17.88M | -5.06M | -103.79M | -176.66M | -215.25M |
| Net Income | -30.94M | -20.20M | -13.58M | -110.56M | -182.02M | -220.68M |
Balance Sheet | ||||||
| Total Assets | 246.22M | 255.88M | 233.15M | 222.51M | 250.95M | 305.71M |
| Cash, Cash Equivalents and Short-Term Investments | 44.78M | 46.63M | 59.28M | 80.41M | 84.85M | 157.58M |
| Total Debt | 141.63M | 140.64M | 177.76M | 179.63M | 157.48M | 159.50M |
| Total Liabilities | 237.08M | 241.54M | 266.80M | 256.48M | 237.38M | 228.14M |
| Stockholders Equity | 9.14M | 14.33M | -33.65M | -33.97M | 13.57M | 77.57M |
Cash Flow | ||||||
| Free Cash Flow | -20.86M | -27.91M | -24.23M | -60.33M | -148.74M | -206.38M |
| Operating Cash Flow | -20.26M | -27.59M | -22.53M | -58.79M | -146.91M | -203.35M |
| Investing Cash Flow | 12.80M | 16.01M | 18.71M | 18.00M | -3.32M | 32.73M |
| Financing Cash Flow | 14.31M | 14.43M | 940.00K | 54.11M | 75.06M | 156.03M |
Heron Therapeutics Technical Analysis
Negative
0.46
Price Trends
0.47
Positive
0.71
Negative
0.97
Negative
Market Momentum
<0.01
Negative
51.08
Neutral
52.43
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 0.46 is below the 20-day moving average (MA) of 0.48, below the 50-day MA of 0.47, and below the 200-day MA of 0.97, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.08 is Neutral, neither overbought nor oversold. The STOCH value of 52.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HRTX.
Heron Therapeutics Risk Analysis
Heron Therapeutics disclosed 56 risk factors in its most recent earnings report. Heron Therapeutics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We may not be able to satisfy the continued listing requirements of Nasdaq to maintain a listing of our common stock. Q1, 2026
2.
Provisions contained in our debt instruments may have a negative impact on our business. Q1, 2026
Heron Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $96.84M | -2.22 | -38.80% | ― | -100.00% | -1056.82% | |
47 Neutral | $71.66M | -2.90 | -201.43% | ― | ― | 33.86% | |
45 Neutral | $65.93M | -1.28 | -95.50% | ― | -10.71% | 28.59% | |
44 Neutral | $93.92M | -2.80 | -1115.29% | ― | 1.48% | -244.25% | |
43 Neutral | $89.91M | -3.14 | 5214.36% | ― | ― | 13.21% | |
43 Neutral | $133.55M | -1.00 | 65.27% | ― | 4.43% | 27.41% |
* Healthcare Sector Average
HRTX
Heron Therapeutics
0.49
-0.83
-62.88%
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BDTX
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1.95
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ADCT
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1.13
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GANX
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1.82
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22.97%
Heron Therapeutics Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Heron Therapeutics Faces Nasdaq Minimum Bid Price Deficiency
Negative
Jun 25, 2026
On June 25, 2026, Heron Therapeutics disclosed that it had received a notice from Nasdaq stating its common stock failed to meet the $1.00 minimum bid price requirement over the 30 trading days from May 12 to June 24, 2026. The company now has unt...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Heron Shareholders Approve Directors, Incentive Plans, Tax Measures
Positive
Jun 16, 2026
At its 2026 Annual Meeting of Stockholders held on June 11, 2026, Heron Therapeutics’ shareholders elected seven directors to serve until the 2027 meeting and ratified Withum Smith+Brown, PC as the independent registered public accounting fi...
Business Operations and StrategyLegal Proceedings
Heron Therapeutics Appeals Ruling Invalidating CINVANTI Patents
Negative
Jun 2, 2026
On June 2, 2026, Heron Therapeutics reported that the U.S. District Court for the District of Delaware had ruled on June 1, 2026 that the asserted claims of its U.S. Patents Nos. 12,115,255 and 12,290,520 covering CINVANTI (aprepitant) injectable ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.