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Heron Therapeutics
(NASDAQ:HRTX)
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Rating:43Neutral
Price Target:
$0.47
▲(2.83% Upside)
Action:Reiterated
Date:08/10/26
The score is weighed down primarily by weak financial strength (high leverage, thin equity, and negative cash flow) and elevated near-term uncertainty from the earnings call (withdrawn guidance and CINVANTI legal/generic risk with tightening liquidity). Technicals are roughly neutral and provide limited offset, while valuation is constrained by ongoing losses and no dividend support.
Positive Factors
High gross margin & revenue growth
Sustained top-line improvement and a ~71% gross margin indicate durable product economics and pricing power in targeted acute-care settings. High gross margins provide room to absorb SG&A and R&D, supporting a clearer path to sustained profitability as sales scale and utilization rises.
Negative Factors
CINVANTI patent invalidation risk
A court ruling invalidating CINVANTI patents threatens the company’s largest oncology-supportive product and could enable generic entrants. This structural IP risk can permanently reduce revenues, margins and bargaining leverage in key channels even if appeals delay generics.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin & revenue growth
Sustained top-line improvement and a ~71% gross margin indicate durable product economics and pricing power in targeted acute-care settings. High gross margins provide room to absorb SG&A and R&D, supporting a clearer path to sustained profitability as sales scale and utilization rises.
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
$92.90M
Dividend YieldN/A
Average Volume (3M)3.06M
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth1.48%
EPS Growth-244.25%
CountryUS
Employees128
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.19
Shares Outstanding189,279,370
10 Day Avg. Volume2,664,236
30 Day Avg. Volume3,059,040
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$165.66M
Heron Therapeutics Business Overview & Revenue Model
Company Description
Heron Therapeutics, Inc. is a biotechnology firm dedicated to creating innovative therapies for critical patient requirements. The company leverages its proprietary Biochronomer drug delivery platform, an advanced system that enables the controlle...
How the Company Makes Money
Heron Therapeutics primarily makes money by selling its FDA-approved products to healthcare providers and institutions through pharmaceutical distribution channels, with net product revenue recognized from these sales (net of items such as wholesa...
Heron Therapeutics Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Negative
The call showed meaningful commercial strengths — notably strong year-over-year growth in the acute care franchise, particularly APONVIE and ZYNRELEF, improved adjusted EBITDA, and proactive balance sheet and legal actions. However, the June court decision creating potential generic competition for CINVANTI (the company's largest product), the subsequent withdrawal of full-year guidance, reduced pro forma cash after required principal payments, an increased GAAP net loss, and a pause in sales force expansion introduce significant near-term uncertainty. Overall, positive operating pockets are overshadowed by material legal, cash and guidance risks.Positive Updates
Total Net Revenue and Quarter-over-Quarter Improvement
Net revenue for Q2 2026 was $37.7 million, up from $34.7 million in Q1 2026 and roughly flat versus prior-year quarter ($37.2 million).
Negative Updates
Court Decision Creates Material Uncertainty for CINVANTI
A June U.S. District Court decision on certain CINVANTI patents changed the company's outlook; Heron has appealed but faces the possibility of generic entry for its largest product, creating uncertain timing and market-share risk.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Net Revenue and Quarter-over-Quarter Improvement
Net revenue for Q2 2026 was $37.7 million, up from $34.7 million in Q1 2026 and roughly flat versus prior-year quarter ($37.2 million).
Read all positive updates
Company Guidance
Heron withdrew its full‑year 2026 guidance of $173–$183 million in net product sales and $10–$20 million in adjusted EBITDA, citing three uncertainties (the June court decision affecting potential generic timing/terms for CINVANTI, the pause of a planned second‑half sales‑force expansion and tightened spending, and consideration of strategic alternatives) and will instead report quarterly on cash, spending and covenant compliance; at quarter end it had $42.7 million in cash, equivalents and short‑term investments (pro forma ~$28.5M after a $13.5M principal paydown and ~ $24.3M if a further $4.0M payment is made by Sept. 15), agreed an amended Hercules facility that waives June covenants and resets monthly minimum revenue and EBITDA covenants plus a minimum cash covenant through December 2027, and reported Q2 results of $37.7M net revenues, 69.3% gross margin, $2.0M operating loss, $5.5M net loss and $3.2M adjusted EBITDA.Heron Therapeutics Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
24
Negative
Cash Flow
30
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 151.18M | 154.90M | 144.28M | 127.04M | 107.67M | 86.35M |
| Gross Profit | 105.94M | 113.56M | 105.64M | 61.94M | 52.80M | 40.33M |
| EBITDA | -24.40M | -17.88M | -5.06M | -103.79M | -176.66M | -215.25M |
| Net Income | -34.05M | -20.20M | -13.58M | -110.56M | -182.02M | -220.68M |
Balance Sheet | ||||||
| Total Assets | 252.26M | 255.88M | 233.15M | 222.51M | 250.95M | 305.71M |
| Cash, Cash Equivalents and Short-Term Investments | 42.66M | 46.63M | 59.28M | 80.41M | 84.85M | 157.58M |
| Total Debt | 148.35M | 140.64M | 177.76M | 179.63M | 157.48M | 159.50M |
| Total Liabilities | 245.35M | 241.54M | 266.80M | 256.48M | 237.38M | 228.14M |
| Stockholders Equity | 6.91M | 14.33M | -33.65M | -33.97M | 13.57M | 77.57M |
Cash Flow | ||||||
| Free Cash Flow | -12.13M | -27.91M | -24.23M | -60.33M | -148.74M | -206.38M |
| Operating Cash Flow | -11.61M | -27.59M | -22.53M | -58.79M | -146.91M | -203.35M |
| Investing Cash Flow | 2.20M | 16.01M | 18.71M | 18.00M | -3.32M | 32.73M |
| Financing Cash Flow | 13.61M | 14.43M | 940.00K | 54.11M | 75.06M | 156.03M |
Heron Therapeutics Technical Analysis
Negative
0.46
Price Trends
0.46
Negative
0.71
Negative
0.96
Negative
Market Momentum
>-0.01
Positive
24.85
Positive
36.19
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 0.46 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.46, and below the 200-day MA of 0.96, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 24.85 is Positive, neither overbought nor oversold. The STOCH value of 36.19 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 56 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 2 New Risks
1.
We may not be able to satisfy the continued listing requirements of Nasdaq to maintain a listing of our common stock. Q1, 2026
2.
Provisions contained in our debt instruments may have a negative impact on our business. Q1, 2026
Heron Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $112.03M | -2.68 | -38.80% | ― | -100.00% | -392.92% | |
47 Neutral | $77.63M | -3.05 | -201.43% | ― | ― | 33.86% | |
45 Neutral | $76.45M | -1.54 | -95.50% | ― | -10.71% | 28.59% | |
43 Neutral | $92.90M | -1.79 | -1115.29% | ― | 1.48% | -244.25% | |
43 Neutral | $95.78M | -3.32 | 5214.36% | ― | ― | 13.21% | |
43 Neutral | $143.73M | -1.07 | 65.27% | ― | 4.43% | 27.41% |
* Healthcare Sector Average
HRTX
Heron Therapeutics
0.34
-0.95
-73.83%
ONCY
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0.80
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1.03
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BDTX
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1.98
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-14.29%
ADCT
ADC Therapeutics
1.13
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GANX
Gain Therapeutics
1.77
0.31
21.23%
Heron Therapeutics Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Heron Therapeutics Faces Nasdaq Minimum Bid Price Deficiency
Negative
Jun 25, 2026
On June 25, 2026, Heron Therapeutics disclosed that it had received a notice from Nasdaq stating its common stock failed to meet the $1.00 minimum bid price requirement over the 30 trading days from May 12 to June 24, 2026. The company now has unt...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Heron Shareholders Approve Directors, Incentive Plans, Tax Measures
Positive
Jun 16, 2026
At its 2026 Annual Meeting of Stockholders held on June 11, 2026, Heron Therapeutics’ shareholders elected seven directors to serve until the 2027 meeting and ratified Withum Smith+Brown, PC as the independent registered public accounting fi...
Business Operations and StrategyLegal Proceedings
Heron Therapeutics Appeals Ruling Invalidating CINVANTI Patents
Negative
Jun 2, 2026
On June 2, 2026, Heron Therapeutics reported that the U.S. District Court for the District of Delaware had ruled on June 1, 2026 that the asserted claims of its U.S. Patents Nos. 12,115,255 and 12,290,520 covering CINVANTI (aprepitant) injectable ...
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.