Heron Therapeutics (HRTX) AI Stock Analysis

• Market Cap: $208.98M
• Dividend Yield: N/A
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• 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: 183,314,400
• 10 Day Avg. Volume: 1,129,476
• 30 Day Avg. Volume: 1,486,366
• 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: 2.18
• Enterprise Value/Revenue: 2.93
• Enterprise Value/Gross Profit: 3.97
• Enterprise Value/Ebitda: 64.29
• 1Y Price Target: $4.50
• Price Target Upside: 309.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $1.00 ▼(-9.09% Downside)

Heron Therapeutics faces significant financial challenges, including high leverage and negative profitability, which weigh heavily on its overall score. The technical analysis indicates a bearish trend, and the valuation metrics are unattractive due to the negative P/E ratio. Despite some positive developments in the earnings call, such as product growth and successful financing, the financial risks and operational challenges remain the most significant factors impacting the stock's score.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, which can support long-term business expansion and stability.

Product Sales Growth

Robust sales growth in key products suggests strong market demand and effective commercialization strategies, enhancing future revenue potential.

New Initiatives

Strategic initiatives are likely to drive sustained demand and market presence, supporting long-term growth and competitive positioning.

Negative Factors

Financial Stability Challenges

Financial instability, marked by high leverage and negative equity, threatens long-term viability and limits strategic flexibility.

Gross Margin Decrease

A declining gross margin indicates potential cost management issues, which could impact profitability and financial health over time.

Net Loss

Ongoing net losses, exacerbated by debt-related expenses, highlight financial challenges that may hinder long-term growth and sustainability.

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 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 shows strong revenue growth but faces significant profitability and financial stability challenges. High leverage and negative equity pose risks, while cash flow improvements are overshadowed by ongoing operational losses. The company needs to address its financial structure and operational efficiency to achieve sustainable growth.

Income Statement

Heron Therapeutics has shown significant revenue growth with a TTM increase of 79.2%. However, the company struggles with profitability, as evidenced by a negative net profit margin of -0.62% in the TTM. The gross profit margin is strong at 74.6%, indicating effective cost management at the production level. Despite improvements, EBIT and EBITDA margins remain low, suggesting ongoing operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of -6.48 in the TTM, indicating significant leverage and financial risk. The negative stockholders' equity further highlights financial instability. Return on equity is slightly positive at 2.88%, but this is due to negative equity, which distorts the metric. Overall, the balance sheet reflects financial vulnerability.

Cash Flow

The cash flow statement shows a positive free cash flow growth rate of 24.62% in the TTM, indicating some improvement in cash generation. However, both operating and free cash flows remain negative, with operating cash flow to net income ratio at -0.11, suggesting cash flow challenges. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow is covering net losses.

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	114.64M	105.64M	61.94M	52.80M	40.33M	52.45M
EBITDA	7.08M	-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: 1.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.1 is below the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.26, and below the 200-day MA of 1.79, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 33.75 is Neutral, neither overbought nor oversold. The STOCH value of 24.75 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%
OCGN	47 Neutral	$446.60M	―	-289.93%	―	14.26%	-23.34%
BNTC	47 Neutral	$414.23M	―	-42.31%	―	―	83.28%
SGMT	44 Neutral	$240.88M	―	-37.89%	―	-100.00%	-62.44%
HRTX	42 Neutral	$208.98M	-115.15	―	―	12.60%	58.23%
KOD	35 Underperform	$941.81M	-4.46	-140.33%	―	―	-0.69%
NMRA	33 Underperform	$451.83M	-1.78	-89.37%	―	―	9.84%

Heron Therapeutics Corporate Events

Heron Therapeutics’ Earnings Call: Growth Amid Challenges

Heron Therapeutics Inc. recently conducted its earnings call, revealing a mixed sentiment with strong growth in certain product lines and successful financing, yet facing challenges such as declining SUSTOL sales and a decrease in gross margin. Despite reporting a net loss due to debt extinguishment, the company is on a positive trajectory with some financial hurdles to overcome.

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.

The most recent analyst rating on (HRTX) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Heron Therapeutics stock, see the HRTX Stock Forecast page.

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.

The most recent analyst rating on (HRTX) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Heron Therapeutics stock, see the HRTX Stock Forecast page.

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.

The most recent analyst rating on (HRTX) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Heron Therapeutics stock, see the HRTX Stock Forecast page.

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.

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’ Earnings Call Highlights Growth and Strategy

Heron Therapeutics’ recent earnings call exuded a positive sentiment, reflecting significant progress in financial and strategic initiatives. The company showcased strong revenue growth, successful financing, and strategic transitions, despite facing a net loss and temporary revenue impacts. The overall tone suggests a positive momentum for the company moving forward.

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.

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 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.

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 Reports Strong Q2 2025 Results

Heron Therapeutics, Inc. is a commercial-stage biotechnology company focused on developing and commercializing therapeutic innovations to improve medical care, particularly in the acute care and oncology sectors.

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.

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.