Heron Therapeutics (HRTX) AI Stock Analysis

• Market Cap: $326.49M
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 12.43%
• EPS Growth: 91.67%
• Country: US
• Employees: 122
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): 0.01
• Shares Outstanding: 152,563,630
• 10 Day Avg. Volume: 1,823,771
• 30 Day Avg. Volume: 1,225,459
• PEG Ratio: 0.05
• Price to Book (P/B): 20.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.83
• Enterprise Value/Market Cap: 5.73
• Enterprise Value/Revenue: 3.30
• Enterprise Value/Gross Profit: 17.02
• Enterprise Value/Ebitda: -30.71
• 1Y Price Target: $6.25
• Price Target Upside: 192.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 61 Neutral
• Price Target: $2.00 ▼(-6.54%Downside)

Heron Therapeutics demonstrates strong product performance and strategic focus, reflected in the positive earnings call score. However, significant financial challenges and valuation concerns weigh down the overall score. Corporate governance improvements and legal resolutions add a positive but modest impact.

Positive Factors

Earnings and Financial Performance

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

Product Approval and Innovation

Zynrelef's recent approval of the vial access needle and potential launch of a prefilled syringe could provide near- and mid-term catalysts.

Stock Valuation

HRTX shares continue to trade at less than 2.5x peak Zynrelef revenue alone, with potential for significant upside.

Negative Factors

Debt Concerns

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

Product Revenue Concerns

Better than expected Cinvanti and Aponvie sales offset lower than expected Zynrelef revenues.

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 primarily through the commercialization of its pharmaceutical products. The company's revenue model is centered on the sales of its FDA-approved treatments, including non-opioid pain management solutions and supportive care products for chemotherapy-induced side effects. Key revenue streams include direct product sales in the United States and potential licensing agreements or collaborations with other pharmaceutical companies for product distribution in international markets. Strategic partnerships and alliances in research and development also play a critical role in the company's financial growth, enabling access to broader markets and shared resources.

Heron Therapeutics Financial Statement Overview

Summary

Heron Therapeutics shows revenue growth but struggles with profitability and financial stability. High leverage and negative equity pose financial risks, though there are slight improvements in cash flow.

Income Statement

Heron Therapeutics shows a positive revenue growth trajectory with a 9.47% increase in TTM revenue compared to the previous annual period. However, the company is struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin is relatively healthy at 69.54%, suggesting efficient cost management at the production level.

Balance Sheet

The balance sheet reflects high leverage with a negative stockholders' equity, resulting in an undefined debt-to-equity ratio and a concerning financial position. The company's equity ratio is negative, indicating liabilities exceed assets, which could pose a risk. These factors highlight potential financial instability.

Cash Flow

The company demonstrates a slight improvement in free cash flow, with a reduction in cash outflow by 2.21% from the previous annual period. However, operating cash flow remains negative, and the ratio of operating cash flow to net income is not favorable, suggesting ongoing cash flow challenges despite some positive movement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	148.52M	144.28M	192.15M	107.67M	86.35M	88.64M
Gross Profit	109.86M	105.64M	61.94M	52.80M	40.33M	52.45M
EBITDA	2.76M	-5.06M	-103.79M	-176.66M	-215.25M	-222.53M
Net Income	-7.79M	-13.58M	-110.56M	-134.52M	-217.66M	-224.43M
Balance Sheet
Total Assets	235.75M	233.15M	222.51M	250.95M	305.71M	353.56M
Cash, Cash Equivalents and Short-Term Investments	50.68M	59.28M	80.41M	84.85M	157.58M	208.49M
Total Debt	177.26M	177.76M	179.63M	157.48M	159.50M	24.61M
Total Liabilities	264.20M	266.80M	256.48M	237.38M	228.14M	117.06M
Stockholders Equity	-28.45M	-33.65M	-33.97M	13.57M	77.57M	236.49M
Cash Flow
Free Cash Flow	-23.70M	-24.23M	-60.33M	-148.74M	-206.38M	-191.63M
Operating Cash Flow	-21.88M	-22.53M	-58.79M	-146.91M	-203.35M	-184.82M
Investing Cash Flow	19.71M	18.71M	18.00M	-3.32M	32.73M	208.96M
Financing Cash Flow	993.00K	940.00K	54.11M	75.06M	156.03M	9.11M

Heron Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRTX, the sentiment is Positive. The current price of 2.14 is above the 20-day moving average (MA) of 2.04, above the 50-day MA of 2.06, and above the 200-day MA of 1.87, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.81 is Neutral, neither overbought nor oversold. The STOCH value of 75.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HRTX.

Heron Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UPB	64 Neutral	$587.97M	―		―	―	―
HRTX	61 Neutral	$326.49M	―	40.36%	―	12.43%	91.67%
Sector *	46 Neutral	C$190.36M	-4.25	-8.56%	3.09%	13.53%	-1.76%
STIM	43 Neutral	$232.35M	―	-152.14%	―	22.16%	-37.60%
ALLO	43 Neutral	$258.10M	―	-59.60%	―	-100.00%	31.43%
TECX	42 Neutral	$369.72M	―	-30.10%	―	―	-343.40%
ZBIO	42 Neutral	$400.77M	―	-115.47%	―	―	―

Heron Therapeutics Corporate Events

Heron Therapeutics Holds Annual Stockholders Meeting

On June 12, 2025, Heron Therapeutics held its Annual Meeting of Stockholders where key decisions were made, including the election of six directors and the ratification of Withum Smith+Brown, PC as the independent accounting firm for 2025. Stockholders also approved executive compensation for 2024 and decided to conduct annual advisory votes on executive pay, aligning with the company’s recommendations. These decisions reflect the company’s commitment to governance and transparency, potentially impacting its stakeholder relationships positively.

The most recent analyst rating on (HRTX) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Heron Therapeutics stock, see the HRTX Stock Forecast page.

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.