Heron Therapeutics (HRTX)
NASDAQ:HRTX
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Heron Therapeutics
(NASDAQ:HRTX)
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Rating:46Neutral
Price Target:
$0.94
▼(-6.40% Downside)
Action:Reiterated
Date:05/12/26
The score is held down primarily by weak financial quality (negative cash flow, high leverage vs. a thin equity base, and declining TTM revenue) and a technically weak price trend below major moving averages. Offsetting these risks, the latest earnings call was constructive with reaffirmed 2026 sales/adjusted EBITDA guidance and clear product-demand momentum, which improves the outlook but does not fully resolve current balance-sheet and cash-flow pressures.
Positive Factors
High gross margins & improved profitability
Sustained ~72% gross margins and a sharply narrowed net loss signal durable product-level economics and pricing power in hospital/oncology channels. Strong gross margins provide room to absorb temporary cost pressure while supporting a path to sustained operating profitability if revenue recovers.
Negative Factors
High leverage
Very elevated leverage relative to a thin equity base materially limits financial flexibility and raises refinancing and covenant risk. High debt magnifies downside from revenue shocks and increases sensitivity to interest costs, constraining long-term strategic optionality and M&A/partnership moves.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins & improved profitability
Sustained ~72% gross margins and a sharply narrowed net loss signal durable product-level economics and pricing power in hospital/oncology channels. Strong gross margins provide room to absorb temporary cost pressure while supporting a path to sustained operating profitability if revenue recovers.
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
$182.50M
Dividend YieldN/A
Average Volume (3M)1.76M
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth1.48%
EPS Growth-244.25%
CountryUS
Employees122
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.18
Shares Outstanding189,279,370
10 Day Avg. Volume1,750,485
30 Day Avg. Volume1,764,132
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 Cap1.66
Enterprise Value/Revenue2.01
Enterprise Value/Gross Profit2.83
Enterprise Value/Ebitda-14.74
Forecast
1Y Price Target
$3.50Price Target Upside250.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.03
Revenue Forecast (FY)$173.15M
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 level...
How the Company Makes Money
Heron Therapeutics primarily makes money by selling its prescription pharmaceutical products in the United States. Revenue is generated when hospitals, outpatient surgical centers, oncology clinics, wholesalers, and other healthcare channel partne...
Heron Therapeutics Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 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
42
Neutral
Balance Sheet
28
Negative
Cash Flow
30
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 | -20.56M | -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
Neutral
1.00
Price Trends
0.99
Positive
1.15
Negative
1.30
Negative
Market Momentum
>-0.01
Negative
61.51
Neutral
86.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRTX, the sentiment is Neutral. The current price of 1 is above the 20-day moving average (MA) of 0.84, above the 50-day MA of 0.99, and below the 200-day MA of 1.30, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 86.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $2.47B | -10.14 | -253.85% | ― | ― | -15.28% | |
56 Neutral | $468.06M | -4.00 | -40.85% | ― | ― | 24.50% | |
53 Neutral | $406.76M | -13.08 | -38.92% | ― | ― | 68.74% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $352.04M | -1.64 | -181.70% | ― | ― | 17.61% | |
46 Neutral | $182.50M | -4.68 | 304.91% | ― | 1.48% | -244.25% | |
46 Neutral | $497.63M | -7.56 | -9999.00% | ― | -1.26% | -23.97% |
* Healthcare Sector Average
HRTX
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Heron Therapeutics Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Heron Therapeutics Strengthens Executive Contracts Amid Strategic Focus
Positive
Apr 6, 2026
On April 3, 2026, Heron Therapeutics amended and restated Chief Executive Officer Craig Collard’s employment agreement, significantly revising severance, bonus, and equity treatment terms tied to terminations and change-in-control events. Th...
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.