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Heron Therapeutics (HRTX)
NASDAQ:HRTX
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Heron Therapeutics
(NASDAQ:HRTX)58Neutral
Positive Factors
Court Decision
The court decision is a significant positive for HRTX that should eliminate the threat of a potential near-term generic Cinvanti launch.
Product Development
FDA approved HRTX's application for a new product presentation of Zynrelef that includes a vial access needle (VAN).
Negative Factors
Financial Challenges
There is a financial overhang associated with the 2026 convertible notes, expected to be addressed in 2025.
Heron Therapeutics (HRTX) vs. S&P 500 (SPY)
Market Cap
$338.17M
Dividend YieldN/A
Average Volume (3M)2.10M
Price to Earnings (P/E)―
Beta (1Y)1.52
Revenue Growth13.57%
EPS Growth89.73%
CountryUS
Employees126
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.09
Shares Outstanding152,329,590
10 Day Avg. Volume3,974,739
30 Day Avg. Volume2,098,624
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.52
Price to Cash Flow (P/CF)-7.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.50Price Target Upside192.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Heron Therapeutics Business Overview & Revenue Model
Company DescriptionHeron Therapeutics, Inc. (HRTX) is a biotechnology company focused on developing and commercializing innovative pharmaceutical products for patients suffering from cancer and pain. The company operates primarily in the biotechnology and pharmaceutical sectors, with a core emphasis on creating therapies that address unmet medical needs. Heron's product portfolio includes injectable therapies designed to improve post-operative pain management and prevent chemotherapy-induced nausea and vomiting (CINV).
How the Company Makes MoneyHeron Therapeutics generates revenue through the sale of its pharmaceutical products, primarily targeting hospitals, clinics, and healthcare providers. The company's key revenue streams come from the commercialization of its approved drugs, Sustol and Cinvanti, which are used to manage CINV, and Zynrelef, an extended-release local anesthetic for postoperative pain management. Heron Therapeutics also engages in partnerships and collaborations to enhance its market reach and may receive milestone payments and royalties as part of these agreements. Additionally, the company's research and development efforts are focused on expanding its product portfolio, which could lead to new revenue opportunities in the future.
Heron Therapeutics Financial Statement Overview
Summary
Heron Therapeutics demonstrates consistent revenue growth and improved gross margins but struggles with profitability, high leverage, and negative equity, presenting financial risks.Income Statement
Heron Therapeutics shows consistent revenue growth, particularly a 13.6% increase from 2023 to 2024. However, the company struggles with profitability, reflected in negative EBIT and net profit margins. The gross profit margin improved to 73.2% in 2024 from 48.7% in 2023, indicating better cost management. The persistent losses and negative margins weigh on the financial health.45
Neutral
Balance Sheet
The balance sheet reflects financial instability with negative stockholders' equity and a high debt-to-equity ratio, indicating significant leverage and financial risk. The equity ratio is negative due to the accumulated deficit, which undermines financial stability and limits future financing options.30
Negative
Cash Flow
Heron Therapeutics has negative free cash flow and operating cash flow, although there is a notable improvement in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is negative, reflecting a cash burn that could pose liquidity challenges.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 144.28M | 127.04M | 107.67M | 86.35M | 88.64M | Gross Profit |
| 105.64M | 61.94M | 52.80M | 40.33M | 52.45M | EBIT |
| -11.53M | -110.61M | -174.66M | -217.83M | -228.16M | EBITDA |
| -5.06M | -103.79M | -176.66M | -215.25M | -222.53M | Net Income Common Stockholders |
| -13.58M | -110.56M | -134.52M | -217.66M | -224.43M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 59.28M | 80.41M | 84.85M | 157.58M | 208.49M | Total Assets |
| 233.15M | 222.51M | 250.95M | 305.71M | 353.56M | Total Debt |
| 177.76M | 179.63M | 157.48M | 159.50M | 24.61M | Net Debt |
| 151.96M | 150.95M | 142.11M | 68.95M | -80.53M | Total Liabilities |
| 266.80M | 256.48M | 237.38M | 228.14M | 117.06M | Stockholders Equity |
| -33.65M | -33.97M | 13.57M | 77.57M | 236.49M |
| Cash Flow | Free Cash Flow | |||
| -24.23M | -60.33M | -148.74M | -206.38M | -191.63M | Operating Cash Flow |
| -22.53M | -58.79M | -146.91M | -203.35M | -184.82M | Investing Cash Flow |
| 18.71M | 18.00M | -3.32M | 32.73M | 208.96M | Financing Cash Flow |
| 940.00K | 54.11M | 75.06M | 156.03M | 9.11M |
Heron Therapeutics Technical Analysis
Positive
2.22
Price Trends
1.78
Positive
1.67
Positive
2.16
Positive
Market Momentum
0.18
Negative
57.96
Neutral
64.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRTX, the sentiment is Positive. The current price of 2.22 is above the 20-day moving average (MA) of 1.96, above the 50-day MA of 1.78, and above the 200-day MA of 2.16, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 64.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $10.96B | 22.09 | 23.13% | ― | 18.49% | 176.71% | |
58 Neutral | $338.17M | ― | 40.36% | ― | 13.57% | 89.73% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
37 Underperform | $64.47M | ― | 41.08% | ― | -0.55% | 49.85% | |
30 Underperform | $29.17M | ― | 81.06% | ― | 20.11% | 1.86% |
* Healthcare Sector Average
Performance Comparison
HRTX
Heron Therapeutics
2.22
-0.19
-7.88%
EXEL
Exelixis
39.16
16.70
74.35%
KPTI
Karyopharm Therapeutics
7.66
-14.54
-65.50%
IGXT
IntelGenx Technologies
0.17
0.00
0.00%
Heron Therapeutics Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 29.82% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The call highlighted significant achievements in profitability, revenue growth, and operational efficiency, alongside successful product developments and legal victories. However, challenges remain with increased competition, cash flow management, and ongoing legal and R&D expenses.Highlights
Achievement of Profitability
Heron Therapeutics achieved profitability for both Q4 2024 and the full year, with a net income of $3.6 million for the quarter and adjusted EBITDA of $8.6 million.
Strong Revenue Growth
Net revenues for 2024 reached $144.2 million, marking a 14% year-over-year increase. CINVANTI revenues rebounded in Q4, and ZYNRELEF achieved record net revenues of $8.5 million, a 33% increase from Q3.
Operational Efficiency Improvements
Operating expenses have been reduced by over $80 million since 2022, with SG&A expenses decreasing significantly. Gross margins improved from 49% to approximately 73%.
Successful Product Developments
Expanded product labeling for ZYNRELEF and launched the Vial Access Needle (VAN) in December 2024, receiving positive feedback.
Legal Victory
The U.S. District Court ruled in favor of Heron in its patent lawsuit against Fresenius Kabi, upholding the validity of the CINVANTI patents.
Lowlights
Increased Competition for CINVANTI
Anticipated increased competition in the market for CINVANTI, with potential pressure on average selling prices and net revenues.
Challenges with Cash Flow Management
Despite positive cash flow improvements, there are expectations of lumpiness due to legal expenses and potential fluctuations in EBITDA.
Ongoing Legal and R&D Expenses
Increased legal expenses related to patent litigations and expected higher R&D expenses for the prefilled syringe development.
Company Guidance
In the Heron Therapeutics Q4 2024 conference call, the company reported a successful year, achieving profitability for both the fourth quarter and the full year. Heron saw net revenues of $144.2 million for 2024, marking a 14% year-over-year increase, and delivered an adjusted EBITDA of $8.6 million. The Oncology franchise, including CINVANTI, generated over $100 million, up from $94.8 million in 2023. ZYNRELEF also showed strong performance with Q4 net revenues reaching $8.5 million, a 33% increase from Q3. Looking ahead, Heron provided guidance for 2025 with expected product revenues net ranging from $153 million to $163 million and adjusted EBITDA between zero to $8 million. The company anticipates growth driven by the CrossLink partnership, expanded product labeling, and the implementation of the NOPAIN Act, alongside maintaining financial efficiency with a cash balance of $59 million at the end of 2024.Heron Therapeutics Corporate Events
Business Operations and Strategy
Heron Therapeutics Relocates Headquarters to North Carolina
Positive
Dec 23, 2024
Heron Therapeutics announced the relocation of its corporate headquarters from San Diego, California, to Cary, North Carolina, effective January 1, 2025. The move positions Heron near the Research Triangle Park, facilitating strategic partnerships and expansion within a growing biotech community, aligning with the company’s goals to enhance operations and support its employees.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.