Heron Therapeutics (NASDAQ:HRTX) Releases Earnings Results, Misses Expectations By $0.01 EPS

Heron Therapeutics (NASDAQ:HRTX) issued its quarterly earnings results on Monday. The biotechnology company reported ($0.04) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.01), FiscalAI reports. The company had revenue of $34.71 million during the quarter, compared to analysts’ expectations of $36.72 million.

Here are the key takeaways from Heron Therapeutics’ conference call:

• Net product sales were $34.7 million in Q1, modestly below plan after seasonal co-pay resets and two weeks of severe weather that sharply reduced elective surgeries; management notes March recovered to >$15M and expects rescheduled procedures to provide a tailwind through 2026.
• Acute care momentum — acute revenue grew 32% YoY with ZYNRELEF up 27% and APONVIE >50%; ZYNRELEF demand units rose 22% YoY and Ignite 2.0 expanded targeted accounts by 38%, supporting a planned Q3 salesforce expansion.
• APONVIE commercial and clinical catalysts — demand units grew 68% YoY, ordering accounts hit an all?time high, a permanent J?Code became active April 1, and APONVIE received an A1 evidence rating and prominent inclusion in the 5th consensus PONV guidelines.
• CINVANTI stability — maintained a ~25% NK1 market share and consistent ordering patterns despite competition, with the REIGNITE program and aprepitant salesforce expansion expected to add roughly $10M of annualized revenue from new accounts.
• Margin and temporary supply cost pressure — growth margin dipped to 69% and adjusted EBITDA was negative $0.7M due in part to higher-cost batches from a secondary CINVANTI supplier; the company expects this to work through over the next two quarters and has reaffirmed full?year guidance of $173–183M sales and $10–20M adjusted EBITDA.

Heron Therapeutics Stock Performance

Shares of HRTX stock traded down $0.28 during mid-day trading on Monday, reaching $0.93. The stock had a trading volume of 5,292,475 shares, compared to its average volume of 1,928,451. Heron Therapeutics has a 1-year low of $0.74 and a 1-year high of $2.30. The firm has a market cap of $176.19 million, a price-to-earnings ratio of -7.18 and a beta of 1.70. The company has a current ratio of 2.48, a quick ratio of 1.51 and a debt-to-equity ratio of 10.59. The business’s fifty day moving average is $0.97 and its 200-day moving average is $1.16.

Hedge Funds Weigh In On Heron Therapeutics

Hedge funds and other institutional investors have recently bought and sold shares of the business. Invesco Ltd. raised its position in Heron Therapeutics by 33.0% during the fourth quarter. Invesco Ltd. now owns 307,861 shares of the biotechnology company’s stock worth $400,000 after acquiring an additional 76,466 shares during the period. XTX Topco Ltd increased its stake in shares of Heron Therapeutics by 687.6% during the fourth quarter. XTX Topco Ltd now owns 240,197 shares of the biotechnology company’s stock worth $312,000 after purchasing an additional 209,700 shares in the last quarter. Tang Capital Management LLC increased its stake in shares of Heron Therapeutics by 81.2% during the fourth quarter. Tang Capital Management LLC now owns 6,250,000 shares of the biotechnology company’s stock worth $8,125,000 after purchasing an additional 2,800,000 shares in the last quarter. Quadrature Capital Ltd purchased a new stake in shares of Heron Therapeutics during the fourth quarter worth approximately $296,000. Finally, Millennium Management LLC raised its stake in Heron Therapeutics by 2,785.2% in the 4th quarter. Millennium Management LLC now owns 7,169,908 shares of the biotechnology company’s stock valued at $9,321,000 after purchasing an additional 6,921,405 shares during the last quarter. Institutional investors and hedge funds own 80.01% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Weiss Ratings reissued a “sell (e+)” rating on shares of Heron Therapeutics in a research report on Tuesday, April 21st. Zacks Research downgraded shares of Heron Therapeutics from a “hold” rating to a “strong sell” rating in a report on Monday, April 27th. Three research analysts have rated the stock with a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $4.50.

Heron Therapeutics Company Profile

Heron Therapeutics, Inc is a commercial-stage biotechnology company focused on developing and commercializing therapies in pain management and supportive care for patients undergoing medical and surgical procedures. The company’s research is dedicated to addressing unmet needs in oncology supportive care and post-operative pain management through innovative drug formulations designed to improve patient outcomes and reduce reliance on opioids.

Heron’s first approved therapy, SUSTOL (granisetron) extended-release injection, received U.S.