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Heron Therapeutics (HRTX)
NASDAQ:HRTX
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Heron Therapeutics (HRTX) AI Stock Analysis

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HRTX

Heron Therapeutics

(NASDAQ:HRTX)

Rating:48Neutral
Price Target:
$1.50
▲(13.64% 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
Financial Flexibility
The capital restructuring provides Heron Therapeutics the flexibility to continue operating and grow its key products Zynrelef and Aponvie.
Product Launch
Momentum is building ahead of expanded commercial initiatives and the launch of a dedicated Zynrelef sales team in the third quarter of 2025.
Revenue Growth
Heron reiterated its full-year revenue guidance of $153M to $163M, and the company has reported $76M in 1H25 revenue, making the guidance achievable.
Negative Factors
Revenue Uncertainty
The expected revenue ramp on Zynrelef and Aponvie remains an uncertainty and an overhang.
Sales Performance
Top-line growth struggles continue due to disappointing sales in Zynrelef and Aponvie.
Stock Performance
Shares are down about 25%, likely due to trading technicals around the transactions and disappointment with the 2Q25 performance.

Heron Therapeutics (HRTX) vs. SPDR S&P 500 ETF (SPY)

Heron Therapeutics Business Overview & Revenue Model

Company DescriptionHeron 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 MoneyHeron 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 Earnings Call Summary

Earnings Call Date:Aug 08, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
Heron Therapeutics demonstrated strong financial performance with significant revenue and EBITDA growth, successful financing, and progress in product adoption, particularly for ZYNRELEF and APONVIE. However, transient revenue impacts and discrepancies in inventory and revenue growth were noted. Overall, the company's strategic initiatives and financial management indicate positive momentum.
Q2-2025 Updates
Positive Updates
Successful New Financing
The completion of a new financing that strengthens Heron's balance sheet, providing enhanced financial flexibility to accelerate strategic initiatives.
Revenue and EBITDA Growth
Total net revenues of $37.2 million for the quarter and $76.1 million for the first half of 2025. Adjusted EBITDA was $7.9 million for the first half of the year.
ZYNRELEF and APONVIE Growth
Combined net revenues from APONVIE and ZYNRELEF totaled $10.7 million for the second quarter, reflecting year-over-year growth of 55.5% for the quarter.
J-Code Transition for ZYNRELEF
Transition from a C-code to a permanent J-code for ZYNRELEF, effective October 1, expected to streamline reimbursement processes and improve access.
Improved Financial Performance
Net income of $300,000 for the first half of 2025 compared to a net loss of $12.4 million for the same period in 2024.
Oncology Franchise Success
Combined net revenues from CINVANTI and SUSTOL reaching $26.5 million for the quarter, maintaining market share in a competitive environment.
Negative Updates
Transient Revenue Impact
Q2 revenue was affected by a transient inventory drawdown at wholesalers, reducing net sales by approximately $400,000.
Inventory and Revenue Discrepancies
APONVIE demand units grew 19% but net revenue grew only 9%, reflecting inventory normalization and modest impacts from standard 340B discounts.
SG&A Expenses
Despite a decrease in SG&A expenses, there was an increase in marketing costs primarily related to ZYNRELEF.
Company Guidance
During the Heron Therapeutics Second Quarter 2025 Earnings Call, the company announced several key financial metrics and strategic updates. Heron reported total net revenues of $37.2 million for Q2 2025 and $76.1 million for the first half of 2025, with an adjusted EBITDA of $7.9 million for the first half. The company also highlighted strong year-over-year growth in its Acute Care franchise, with ZYNRELEF and APONVIE combined net revenues growing by 55.5% for the quarter and 70.5% for the first half compared to the same periods in 2024. The transition from a C-code to a permanent J-code for ZYNRELEF, effective October 1, was noted as a significant milestone expected to streamline reimbursement processes. Heron maintained its 2025 net revenue guidance of $153 million to $163 million and revised its adjusted EBITDA guidance to a range of $9 million to $13 million. The company also completed a new financing arrangement, which included a $150 million credit facility with Hercules Capital and a $35 million issuance of senior convertible notes, aimed at strengthening its balance sheet and supporting future growth initiatives.

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
62
Positive
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
45
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue149.69M144.28M127.04M107.67M86.35M88.64M
Gross Profit111.69M105.64M61.94M52.80M40.33M52.45M
EBITDA6.92M-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 Assets232.09M233.15M222.51M250.95M305.71M353.56M
Cash, Cash Equivalents and Short-Term Investments40.63M59.28M80.41M84.85M157.58M208.49M
Total Debt176.74M177.76M179.63M157.48M159.50M24.61M
Total Liabilities259.35M266.80M256.48M237.38M228.14M117.06M
Stockholders Equity-27.26M-33.65M-33.97M13.57M77.57M236.49M
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 Flow25.00M18.71M18.00M-3.32M32.73M208.96M
Financing Cash Flow1.28M940.00K54.11M75.06M156.03M9.11M

Heron Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.32
Price Trends
50DMA
1.75
Negative
100DMA
1.89
Negative
200DMA
1.84
Negative
Market Momentum
MACD
-0.11
Negative
RSI
35.28
Neutral
STOCH
34.70
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 1.32 is below the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.75, and below the 200-day MA of 1.84, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 35.28 is Neutral, neither overbought nor oversold. The STOCH value of 34.70 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 55 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 0 New Risks

Heron Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$7.91B-0.36-41.71%2.23%23.45%-1.86%
48
Neutral
$202.35M40.36%9.78%98.13%
47
Neutral
$361.60M-48.57%-100.00%83.98%
47
Neutral
$321.67M-569.99%33.39%-7.11%
44
Neutral
$228.17M-37.89%-100.00%-62.44%
35
Underperform
$455.32M-140.33%-0.69%
33
Underperform
$281.79M-89.37%9.84%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HRTX
Heron Therapeutics
1.32
-0.48
-26.67%
OCGN
Ocugen
1.03
-0.11
-9.65%
BNTC
Benitec Biopharma
14.00
4.98
55.21%
KOD
Kodiak Sciences
8.55
6.24
270.13%
SGMT
Sagimet Biosciences, Inc. Class A
7.25
4.73
187.70%
NMRA
Neumora Therapeutics, Inc.
1.63
-8.83
-84.42%

Heron Therapeutics Corporate Events

Business Operations and Strategy
Heron Therapeutics Signs New Headquarters Lease
Positive
Aug 28, 2025

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.

Business Operations and Strategy
Heron Therapeutics Adopts Tax Benefit Preservation Plan
Positive
Aug 15, 2025

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.

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Heron Therapeutics Strengthens Financial Position with Refinancing
Positive
Aug 12, 2025

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.

Business Operations and Strategy
Heron Therapeutics Signs Agreement with Patheon
Neutral
Aug 12, 2025

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.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Heron Therapeutics Announces Strategic Financial Initiatives
Positive
Aug 8, 2025

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.

Executive/Board ChangesShareholder Meetings
Heron Therapeutics Holds Annual Stockholders Meeting
Positive
Jun 18, 2025

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.

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.Date of analysis: Aug 29, 2025