Heron Therapeutics (HRTX) AI Stock Analysis

• Market Cap: $232.87M
• Dividend Yield: N/A
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 12.60%
• EPS Growth: 58.23%
• Country: US
• Employees: 122
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.10
• Shares Outstanding: 183,362,520
• 10 Day Avg. Volume: 2,166,172
• 30 Day Avg. Volume: 1,937,628
• PEG Ratio: 0.19
• Price to Book (P/B): -6.93
• Price to Sales (P/S): 1.62
• P/FCF Ratio: -9.62
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: -119.77
• 1Y Price Target: $4.50
• Price Target Upside: 248.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.03
• Revenue Forecast (FY): $156.48M

• Rating: 48 Neutral
• Price Target: $1.50 ▲(16.28% Upside)

Heron Therapeutics faces significant financial challenges, including high leverage and negative profitability, which weigh heavily on its overall stock score. While there are positive developments in product growth and strategic initiatives, these are offset by valuation concerns and technical indicators suggesting potential short-term volatility. The recent board appointment is a positive step but has a limited impact on the overall score.

Positive Factors

Product Growth

Strong growth in ZYNRELEF and APONVIE sales indicates robust demand and successful market penetration, supporting long-term revenue expansion.

Regulatory Inclusion

Inclusion in guidelines enhances APONVIE's credibility and adoption in clinical settings, potentially boosting sales and market position.

Corporate Governance

Cusack's appointment strengthens governance and strategic oversight, potentially improving decision-making and long-term strategic execution.

Negative Factors

High Leverage

Significant leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which could hinder sustainable growth and investor confidence over time.

Gross Margin Decline

Declining gross margins reflect cost pressures and operational challenges, potentially affecting future profitability and competitive positioning.

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 sales of its pharmaceutical products, particularly its branded medications. The company has established a revenue model that includes direct sales to healthcare providers and institutions, as well as distribution partnerships with wholesalers. Key revenue streams include sales from its flagship products, which are marketed directly to hospitals and clinics. Additionally, Heron may receive milestone payments and royalties from collaborations with other pharmaceutical companies as part of strategic partnerships aimed at co-developing or commercializing new therapies. The company also benefits from reimbursement agreements with insurance providers, which facilitate access to its products for patients.

Heron Therapeutics Financial Statement Overview

Summary

Heron Therapeutics is experiencing modest revenue growth but faces significant profitability and cash flow challenges. The high leverage and negative net profit margins highlight financial risks. While there are some positive signs in cash flow growth, the company needs to focus on improving operational efficiency and managing debt to enhance financial health.

Income Statement

Heron Therapeutics shows a modest revenue growth rate of 3.61% TTM, indicating some positive momentum. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -0.62% TTM. The gross profit margin is relatively healthy at 74.61% TTM, but the EBIT and EBITDA margins are low at 3.32% and 4.63% TTM, respectively, suggesting operational challenges.

Balance Sheet

The balance sheet reveals significant financial leverage with a high debt-to-equity ratio of -6.48 TTM, indicating potential risk. The return on equity is positive at 2.88% TTM, but the equity ratio is low, reflecting limited equity financing. The company needs to manage its debt levels to improve financial stability.

Cash Flow

Heron Therapeutics has shown a slight improvement in free cash flow growth at 5.45% TTM. However, the operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is above 1, suggesting that free cash flow is covering net losses, but overall cash flow management remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.10M	144.28M	127.04M	107.67M	86.35M	88.64M
Gross Profit	111.17M	105.64M	61.94M	52.80M	40.33M	52.45M
EBITDA	-2.57M	-5.06M	-103.79M	-176.66M	-215.25M	-222.53M
Net Income	-13.58M	-13.58M	-110.56M	-182.02M	-220.68M	-227.28M
Balance Sheet
Total Assets	248.95M	233.15M	222.51M	250.95M	305.71M	353.56M
Cash, Cash Equivalents and Short-Term Investments	55.49M	59.28M	80.41M	84.85M	157.58M	208.49M
Total Debt	140.44M	177.76M	179.63M	157.48M	159.50M	24.61M
Total Liabilities	234.06M	266.80M	256.48M	237.38M	228.14M	117.06M
Stockholders Equity	14.88M	-33.65M	-33.97M	13.57M	77.57M	236.49M
Cash Flow
Free Cash Flow	-31.14M	-24.23M	-60.33M	-148.74M	-206.38M	-191.63M
Operating Cash Flow	-30.19M	-22.53M	-58.79M	-146.91M	-203.35M	-184.82M
Investing Cash Flow	32.88M	18.71M	18.00M	-3.32M	32.73M	208.96M
Financing Cash Flow	14.63M	940.00K	54.11M	75.06M	156.03M	9.11M

Heron Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.29
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1.29 is above the 20-day moving average (MA) of 1.25, above the 50-day MA of 1.21, and below the 200-day MA of 1.69, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 56.92 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 *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HRTX	48 Neutral	$232.87M	-15.95	―	―	12.60%	58.23%
BNTC	47 Neutral	$365.37M	-11.32	-43.71%	―	―	80.95%
OCGN	46 Neutral	$440.37M	-6.65	-289.93%	―	14.26%	-23.34%
SGMT	44 Neutral	$194.38M	-3.33	-39.78%	―	―	-38.23%
KOD	35 Underperform	$1.43B	-6.40	-207.92%	―	―	-12.93%
NMRA	33 Underperform	$295.75M	-1.18	-104.35%	―	―	20.71%

Heron Therapeutics Corporate Events

Heron Therapeutics Appoints Thomas Cusack to Board

On October 27, 2025, Heron Therapeutics appointed Thomas Cusack to its Board of Directors, following a Cooperation Agreement with Rubric Capital Management LP. With over 20 years of experience in investment management and corporate finance, Cusack’s expertise is expected to contribute significantly to Heron’s growth and corporate governance efforts.

Heron Therapeutics Approves Stock Issuance Proposals

On October 13, 2025, Heron Therapeutics held a Special Stockholders’ Meeting where stockholders approved two proposals related to the issuance of common stock. The approvals, in accordance with Nasdaq Listing Rule 5635(d), allow for the issuance of shares exceeding 19.99% of the company’s outstanding stock under certain future circumstances, linked to the conversion of convertible senior unsecured promissory notes and Series A Convertible Preferred Stock.