Heron Therapeutics selloff creates buying opportunity, says Northland

Northland says the pressure on Heron Therapeutics (HRTX) shares following the FDA approval of a Exparel generic is unwarranted. The selloff is an overreaction as Heron’s Zynrelef is clinically superior to Exparel and it is unlikely that Hengrui would launch a generic at risk amid patent litigation, the analyst tells investors in a research note. The firm views this as a concern for Pacira (PCRX), which generated $538M in Exparel revenue in fiscal 2023, and not for Heron. Northland sees a buying opportunity in Heron shares and keeps an Outperform rating on the name with a $9 price target.