Heron Therapeutics (HRTX) AI Stock Analysis

• Market Cap: $238.31M
• Dividend Yield: N/A
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: 9.78%
• EPS Growth: 98.13%
• Country: US
• Employees: 122
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.02
• Shares Outstanding: 183,314,400
• 10 Day Avg. Volume: 1,636,624
• 30 Day Avg. Volume: 1,686,743
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 4.07
• Enterprise Value/Ebitda: 65.69
• 1Y Price Target: $4.50
• Price Target Upside: 260.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: $1.50 ▲(20.00% Upside)

Heron Therapeutics' overall stock score is primarily impacted by its financial performance, which is challenged by high leverage and ongoing losses. While technical indicators suggest a bearish trend, recent earnings call highlights and corporate events provide some positive momentum. However, valuation remains a significant concern due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Heron's products, enhancing its market position and potential for future profitability.

Strategic Financing Initiatives

The strategic financing initiatives provide Heron with enhanced financial flexibility, supporting growth and operational stability.

Product Adoption

Increased adoption of key products like ZYNRELEF and APONVIE suggests strong market acceptance and potential for sustained revenue growth.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting Heron's ability to invest in growth opportunities and affecting long-term financial health.

Profitability Challenges

Ongoing profitability challenges indicate operational inefficiencies, which could hinder Heron's ability to achieve sustainable long-term growth.

Cash Flow Challenges

Negative operating cash flow suggests difficulties in covering operational expenses, impacting Heron's ability to self-fund growth initiatives.

Heron Therapeutics Business Overview & Revenue Model

Company Description

Heron Therapeutics, Inc. (HRTX) is a biotechnology company focused on developing and commercializing innovative therapeutics for patients suffering from pain and cancer. The company operates primarily in the pharmaceutical sector, specializing in the development of products that address unmet medical needs, particularly in the areas of post-operative pain management and cancer treatment. Heron’s core products include its proprietary formulations designed to provide improved efficacy and safety profiles compared to existing treatments.

How the Company Makes Money

Heron Therapeutics primarily generates revenue through the commercialization of its pharmaceutical products. Key revenue streams include sales of its flagship product, Zynrelef, which is indicated for post-operative pain management, and other potential future products. The company may also generate revenue from partnerships, collaborations, and licensing agreements with other pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties based on product sales. Additionally, Heron may benefit from government grants or funding aimed at supporting innovative therapies in the healthcare sector.

Heron Therapeutics Financial Statement Overview

Summary

Heron Therapeutics exhibits revenue growth but faces challenges in profitability and financial stability. High leverage and negative equity highlight potential 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	149.69M	144.28M	127.04M	107.67M	86.35M	88.64M
Gross Profit	111.69M	105.64M	61.94M	52.80M	40.33M	52.45M
EBITDA	6.92M	-5.06M	-103.79M	-176.66M	-215.25M	-222.53M
Net Income	-931.00K	-13.58M	-110.56M	-182.02M	-220.68M	-227.28M
Balance Sheet
Total Assets	232.09M	233.15M	222.51M	250.95M	305.71M	353.56M
Cash, Cash Equivalents and Short-Term Investments	40.63M	59.28M	80.41M	84.85M	157.58M	208.49M
Total Debt	176.74M	177.76M	179.63M	157.48M	159.50M	24.61M
Total Liabilities	259.35M	266.80M	256.48M	237.38M	228.14M	117.06M
Stockholders Equity	-27.26M	-33.65M	-33.97M	13.57M	77.57M	236.49M
Cash Flow
Free Cash Flow	-29.53M	-24.23M	-60.33M	-148.74M	-206.38M	-191.63M
Operating Cash Flow	-28.15M	-22.53M	-58.79M	-146.91M	-203.35M	-184.82M
Investing Cash Flow	25.00M	18.71M	18.00M	-3.32M	32.73M	208.96M
Financing Cash Flow	1.28M	940.00K	54.11M	75.06M	156.03M	9.11M

Heron Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.25
• 50DMA: Negative
• 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 1.25 is below the 20-day moving average (MA) of 1.29, below the 50-day MA of 1.50, and below the 200-day MA of 1.84, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 40.61 is Neutral, neither overbought nor oversold. The STOCH value of 58.76 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
OCGN	56 Neutral	512.18M	-8.31	-1865.63%	―	33.39%	-7.11%
HRTX	48 Neutral	$238.31M	―	40.36%	―	9.78%	98.13%
BNTC	47 Neutral	369.87M	-11.14	―	―	―	83.28%
SGMT	44 Neutral	225.69M	-3.95	―	―	-100.00%	-62.44%
KOD	35 Underperform	818.21M	-4.09	―	―	―	-0.69%
NMRA	33 Underperform	296.36M	-1.17	―	―	―	9.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Heron Therapeutics Corporate Events

Heron Therapeutics Signs New Headquarters Lease

Heron Therapeutics, Inc. has entered into a new office lease agreement for its corporate headquarters in Cary, North Carolina, effective August 22, 2025. The lease spans approximately 111 months with an option to extend and includes a right of first refusal for additional space, indicating a strategic move to accommodate future growth and operational needs.

Heron Therapeutics Adopts Tax Benefit Preservation Plan

On August 13, 2025, Heron Therapeutics‘ Board of Directors adopted a Tax Benefit Preservation Plan to protect the company’s net operating loss carryforwards (NOLs), valued at approximately $1.37 billion as of December 31, 2024. The plan, effective August 14, 2025, aims to deter any single investor or group from acquiring 4.99% or more of Heron’s outstanding common stock, which could trigger an ‘ownership change’ under Section 382 of the Internal Revenue Code and limit the company’s ability to use its NOLs to offset future taxable income. This strategic move is intended to enhance Heron’s financial position and support its growth strategy.

Heron Therapeutics Strengthens Financial Position with Refinancing

On August 8, 2025, Heron Therapeutics entered into a Cooperation Agreement with Rubric Capital Management, which involves changes to the company’s Board of Directors, including the appointment of a new director nominated by Rubric. Additionally, Heron Therapeutics has undertaken significant refinancing transactions, including amendments to its working capital facility and the issuance of convertible senior unsecured promissory notes, which closed on August 12, 2025. These strategic moves are expected to strengthen the company’s financial position and support its ongoing operations.

Heron Therapeutics Signs Agreement with Patheon

On August 6, 2025, Heron Therapeutics entered into a Framework Agreement with Patheon Austria GmbH & Co KG and Thermo Fisher Scientific Inc. This agreement outlines the terms for Patheon to manufacture and supply specific quantities of products to Heron Therapeutics, with a commitment to purchase 38,400 kg of products by December 31, 2026. The agreement also includes ongoing stability studies and warehousing services, while terminating certain previous agreements between the parties.

Heron Therapeutics Announces Strategic Financial Initiatives

On August 8, 2025, Heron Therapeutics announced several financial and strategic initiatives aimed at enhancing its financial flexibility and supporting growth. The company entered into a secured debt transaction to increase its loan capacity to $150 million and extend debt maturities to 2030. Additionally, Heron executed a convertible note exchange and issuance, alongside a private placement expected to raise $27.7 million, all set to close on August 12, 2025. These moves are part of a comprehensive capital restructuring effort that has already reduced total debt from $175 million to $145 million. Heron’s Q2 2025 financial results showed a net revenue of $37.2 million, with significant growth in its acute care franchise, particularly for ZYNRELEF and APONVIE, reflecting strong commercial execution and expanding market adoption.

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.