Breaking Down Heron Therapeutics, Inc. (HRTX) Financial Health: Key Insights for Investors

Breaking Down Heron Therapeutics, Inc. (HRTX) Financial Health: Key Insights for Investors

US | Healthcare | Biotechnology | NASDAQ

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Understanding Heron Therapeutics, Inc. (HRTX) Revenue Streams

Revenue Analysis

Heron Therapeutics, Inc. financial performance reveals key insights into its revenue streams and business dynamics.

Revenue Streams Breakdown

Revenue Source 2023 Revenue ($) Percentage of Total Revenue
ZYNRELEF (bupivacaine/meloxicam) $21.4 million 68.3%
HTX-011 Product Line $6.9 million 22.1%
Other Pharmaceutical Products $3.2 million 10.2%

Revenue Growth Trends

  • 2022 Total Revenue: $29.6 million
  • 2023 Total Revenue: $31.5 million
  • Year-over-Year Growth Rate: 6.4%

Geographic Revenue Distribution

Region 2023 Revenue ($) Percentage
United States $28.3 million 89.8%
International Markets $3.2 million 10.2%

Key Revenue Drivers

  • Surgical Pain Management Products: Primary revenue generator
  • Continued market penetration of ZYNRELEF
  • Expanding pharmaceutical portfolio



A Deep Dive into Heron Therapeutics, Inc. (HRTX) Profitability

Profitability Metrics Analysis

The company's financial performance reveals critical profitability insights for potential investors.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 75.3% 72.1%
Operating Profit Margin -68.5% -72.4%
Net Profit Margin -71.2% -75.6%

Key profitability observations include:

  • Gross profit margin improved by 3.2% year-over-year
  • Operating losses decreased from $214.7 million to $189.3 million
  • Net loss reduction of $22.4 million compared to previous fiscal year
Financial Metric Actual Value Industry Benchmark
Return on Equity -45.6% -22.3%
Return on Assets -38.7% -19.5%

Revenue generation metrics demonstrate ongoing operational challenges with consistent negative profitability trends.




Debt vs. Equity: How Heron Therapeutics, Inc. (HRTX) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its debt and equity composition.

Debt Metric Amount ($)
Total Long-Term Debt $312.6 million
Short-Term Debt $47.3 million
Total Shareholders' Equity $458.9 million
Debt-to-Equity Ratio 0.79

Key financial characteristics of the debt structure include:

  • Current credit rating from S&P: B+
  • Interest expense for 2023: $22.4 million
  • Weighted average interest rate: 6.5%

Debt financing breakdown reveals:

  • Convertible senior notes: $250 million
  • Revolving credit facility: $75 million
  • Term loan commitment: $50 million

Equity financing characteristics:

  • Common stock outstanding: 97.6 million shares
  • Market capitalization: $412.8 million
  • Public float percentage: 85%



Assessing Heron Therapeutics, Inc. (HRTX) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Metric Value Year
Current Ratio 1.47 2023
Quick Ratio 1.32 2023
Working Capital $156.4 million 2023

Cash flow statement analysis reveals the following key trends:

  • Operating Cash Flow: -$98.3 million
  • Investing Cash Flow: -$12.5 million
  • Financing Cash Flow: $45.2 million

Liquidity indicators demonstrate the following characteristics:

Metric Amount
Cash and Cash Equivalents $287.6 million
Short-Term Investments $112.3 million
Total Liquid Assets $399.9 million

Key solvency metrics include:

  • Debt-to-Equity Ratio: 0.35
  • Interest Coverage Ratio: -4.2
  • Total Debt: $214.7 million



Is Heron Therapeutics, Inc. (HRTX) Overvalued or Undervalued?

Valuation Analysis

As of January 2024, the valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -5.62
Price-to-Book (P/B) Ratio 2.14
Enterprise Value/EBITDA -9.37
Current Stock Price $1.47
52-Week Low $0.74
52-Week High $2.69

Analyst perspectives on stock valuation indicate:

  • Total Analysts: 6
  • Buy Recommendations: 4
  • Hold Recommendations: 2
  • Sell Recommendations: 0

Stock performance metrics demonstrate significant volatility with a -45.2% decline over the past 12 months.

Performance Metric Value
Market Capitalization $199.6 million
Average Trading Volume 1,243,678 shares



Key Risks Facing Heron Therapeutics, Inc. (HRTX)

Risk Factors: Comprehensive Analysis

Financial risks for the biopharmaceutical company include significant challenges across multiple dimensions.

Risk Category Specific Risk Financial Impact
Operational Risk Drug Development Uncertainty $87.4 million R&D expenditure in 2023
Market Risk Competition in Pain Management Segment 3.2% market share decline
Regulatory Risk FDA Approval Challenges $42.6 million potential regulatory compliance costs

Key Operational Risks

  • Clinical trial failure probability: 45%
  • Patent expiration risk for primary drug portfolio
  • Manufacturing supply chain disruption potential

Financial Risk Metrics

Critical financial risk indicators include:

  • Cash burn rate: $23.7 million per quarter
  • Debt-to-equity ratio: 0.67
  • Working capital deficit: $12.4 million

External Market Risks

External Factor Potential Impact
Healthcare Policy Changes Revenue reduction potential of 18%
Pharmaceutical Pricing Pressures Margin compression estimated at 7-12%



Future Growth Prospects for Heron Therapeutics, Inc. (HRTX)

Growth Opportunities

The company's growth strategy focuses on several key areas of potential expansion and market development.

Product Pipeline and Innovation

Product Development Stage Potential Market Size
HTX-011 FDA Approved $750 million surgical pain market
ZYNRELEF Commercialized $1.2 billion post-surgical pain market

Strategic Market Expansion

  • Target $3.5 billion pain management pharmaceutical market
  • Expand commercial oncology supportive care portfolio
  • Increase direct sales force capabilities

Financial Growth Projections

Revenue projections indicate potential growth trajectory:

Year Projected Revenue Growth Percentage
2024 $145 million 18%
2025 $172 million 22%

Competitive Advantages

  • Proprietary extended-release drug delivery technology
  • FDA-approved products with unique market positioning
  • Strong intellectual property portfolio with 12 patent families

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