Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on HRTX

The recent 3-month performance of Heron Therapeutics, Inc. was negatively impacted by the looming patent expiration of its flagship products, CINVANTI and APONVIE, which may lead to generic competition and erode market share. The company's settlement with Mylan Pharmaceuticals, Inc. regarding patent litigations has granted Mylan a license to market generic versions of these products starting June 2032, potentially limiting the company's revenue growth. Additionally, the appointment of a new Chief Operating Officer, Mark Hensley, may not have had sufficient time to implement changes and drive growth, as the company's Q1 2025 earnings were driven by its existing products, with Cinvanti being the top earner and Zynrelef showing strong growth potential.

1.c. Company Highlights

2. Heron Therapeutics' Q3 2025 Earnings: Steady Progress Amidst Challenges

Heron Therapeutics reported Q3 2025 net revenues of $38.2 million, with a gross margin of 68.8%, slightly down due to a one-time write-off of SUSTOL polymer inventory. The company's adjusted EBITDA was $1.5 million for the quarter and $9.5 million year-to-date. The actual EPS came out at '-0.05' relative to estimates at '-0.01333', indicating a challenging quarter. The P/S Ratio of 1.12 suggests that the stock's revenue growth is being valued relatively fairly by the market. With an EV/EBITDA of 47.31, investors are pricing in significant future growth.

Publication Date: Nov -24

📋 Highlights
  • Net Revenue Growth and Margin Stability: Q3 2025 net revenues rose to $38.2M with a 68.8% gross margin, slightly impacted by a one-time SUSTOL inventory write-off.
  • Acute Care Portfolio Surge: ZYNRELEF net sales grew 49% YoY to $9.3M, while APONVIE jumped 173% YoY to $3M, driven by strong demand.
  • Adjusted EBITDA and Cash Position: Adjusted EBITDA reached $1.5M ($9.5M YTD), with $55.5M in cash and short-term investments post-funding.
  • ZYNRELEF Momentum and Reimbursement: 17-18% MoM sales growth in October, supported by NOPAIN Act adoption (75% procedure coverage) and payer reimbursement shifts.

Product Performance

CINVANTI sales remain strong, with the company maintaining accounts and seeing stability, despite competitive pressures. SUSTOL sales, however, declined due to market competition, leading to a decrease in ASP. On the other hand, the acute care portfolio shows significant growth, with ZYNRELEF net sales up 49% year-over-year to $9.3 million and APONVIE net sales up 173% year-over-year to $3 million. As the company noted, ZYNRELEF's growth trend continues, with a 17-18% month-over-month increase in the first few weeks of October, indicating strong momentum.

Strategic Developments

The company reaffirmed its guidance for net revenue of $153 million to $163 million and adjusted EBITDA of $9 million to $13 million. The recent debt and equity transactions added $13.1 million to cash and short-term investments, which totaled $55.5 million, providing a stable financial foundation. The NOPAIN Act implementation is gaining momentum, with commercial payers like Aetna and Cigna providing separate reimbursement for ZYNRELEF, and approximately 75% of indicated procedures having some form of coverage.

Future Prospects

The ZYNRELEF prefilled syringe program is progressing, with registration batches manufactured and stability programs initiated. Approval is expected in 2027, and the program is anticipated to simplify and speed the application and use of ZYNRELEF, driving momentum in the franchise. Analysts estimate next year's revenue growth at 11.6%, indicating a steady trajectory for the company. With the structural changes made in Q3, including dedicated teams for ZYNRELEF and APONVIE, the company is poised for continued growth.

3. NewsRoom

Card image cap

Heron Therapeutics Announces Inclusion of APONVIE® (aprepitant) Injectable Emulsion in the Newly Released Fifth Consensus Guidelines for the Management of Postoperative Nausea and Vomiting (PONV)

Dec -04

Source: globenewswire.com

Card image cap

Heron Therapeutics, Inc. (NASDAQ:HRTX) Receives $4.50 Average Price Target from Brokerages

Dec -02

Source: defenseworld.net

Card image cap

Heron Therapeutics, Inc. (HRTX) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

Card image cap

Heron Therapeutics (HRTX) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

Nov -04

Source: zacks.com

Card image cap

Heron Therapeutics (HRTX) Reports Q3 Loss, Misses Revenue Estimates

Nov -04

Source: zacks.com

Card image cap

Heron Therapeutics Announces Q3 2025 Financial Results and Highlights Commercial Progress

Nov -04

Source: globenewswire.com

Card image cap

Heron Therapeutics Announces Appointment of Thomas Cusack to Board of Directors

Oct -29

Source: globenewswire.com

Card image cap

Heron Therapeutics to Report Third Quarter 2025 Financial Results on Tuesday, November 4, 2025

Oct -21

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.33%)

6. Segments

Therapeutic Innovations

Expected Growth: 10.33%

Heron Therapeutics' 10.33% growth is driven by increasing adoption of its therapeutic innovations, particularly in pain management and oncology care. Strong demand for its flagship product, Sustol, and expanding pipeline of novel treatments contribute to the growth. Additionally, strategic partnerships and collaborations with healthcare providers and research institutions further fuel the company's expansion.

7. Detailed Products

SUSTOL

SUSTOL is a serotonin-3 (5-HT3) receptor antagonist indicated in combination with other antiemetics in adults for the prevention of acute and delayed nausea and vomiting associated with initial and repeat courses of emetogenic cancer chemotherapy, including high-dose cisplatin.

CINVANTI

CINVANTI is a neurokinin-1 (NK-1) receptor antagonist indicated in adults, in combination with other antiemetics, for the prevention of acute and delayed nausea and vomiting associated with initial and repeat courses of emetogenic cancer chemotherapy, including high-dose cisplatin.

HTX-019

HTX-019 is a proprietary, extended-release formulation of aprepitant, a neurokinin-1 (NK-1) receptor antagonist, being developed for the prevention of chemotherapy-induced nausea and vomiting (CINV).

8. Heron Therapeutics, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Heron Therapeutics, Inc. has a moderate threat of substitutes due to the presence of alternative treatments and therapies for pain management and opioid addiction.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Heron Therapeutics, Inc.'s products and the lack of alternative options for patients.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers for raw materials and the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the pharmaceutical industry, including regulatory hurdles and significant capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of established competitors in the pain management and opioid addiction markets, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 123.78%
Debt Cost 3.95%
Equity Weight -23.78%
Equity Cost 12.62%
WACC 1.88%
Leverage -520.50%

11. Quality Control: Heron Therapeutics, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Catalyst Pharmaceuticals

A-Score: 5.8/10

Value: 5.4

Growth: 9.8

Quality: 9.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
MiMedx

A-Score: 5.0/10

Value: 3.1

Growth: 7.2

Quality: 8.5

Yield: 0.0

Momentum: 7.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
UroGen Pharma

A-Score: 4.9/10

Value: 8.2

Growth: 5.6

Quality: 6.1

Yield: 0.0

Momentum: 9.0

Volatility: 0.7

1-Year Total Return ->

View Full Report
Stock-Card
Armata Pharmaceuticals

A-Score: 4.4/10

Value: 8.0

Growth: 4.6

Quality: 6.1

Yield: 0.0

Momentum: 8.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Liquidia

A-Score: 4.0/10

Value: 6.0

Growth: 2.4

Quality: 3.2

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Heron Therapeutics

A-Score: 3.6/10

Value: 7.4

Growth: 6.2

Quality: 5.1

Yield: 0.0

Momentum: 1.0

Volatility: 1.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.31$

Current Price

1.31$

Potential

0.00%

Expected Cash-Flows