Heron Therapeutics, Inc. /De/ (HRTX) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0000818033

P/B 15.62

P/E -17.12

P/S 1.50

Market Cap 232.52 Mn

ROIC (Qtr) 1.05

Div Yield % 0.00

Rev 1y % (Qtr) 16.47

Total Debt (Qtr) 140.44 Mn

Debt/Equity (Qtr) 9.44

About

Heron Therapeutics, Inc., or HRTX, is a commercial-stage biotechnology company operating within the healthcare and life sciences industry. The company is dedicated to enhancing patient care through the development and commercialization of innovative therapeutic solutions. Its headquarters are located in the United States, and its operations span across various regions, focusing on acute care and oncology patients. HRTX's primary business activities revolve around the research, development, and commercialization of pharmaceutical products. These...

Heron Therapeutics, Inc., or HRTX, is a commercial-stage biotechnology company operating within the healthcare and life sciences industry. The company is dedicated to enhancing patient care through the development and commercialization of innovative therapeutic solutions. Its headquarters are located in the United States, and its operations span across various regions, focusing on acute care and oncology patients.

HRTX's primary business activities revolve around the research, development, and commercialization of pharmaceutical products. These activities are supported by the company's advanced science, patented technologies, and innovative approach to drug discovery and development. The company aims to advance the standard of care for acute care and oncology patients by creating a portfolio of products that address various medical conditions and unmet needs.

The company generates revenue through the sale of its primary products, which include ZYNRELEF, APONVIE, SUSTOL, and CINVANTI. These products are designed to treat a range of conditions, such as postoperative pain management, nausea and vomiting prevention, and chemotherapy-induced nausea and vomiting. ZYNRELEF, for instance, is a dual-acting local anesthetic that delivers a fixed-dose combination of bupivacaine and meloxicam, offering extended-release pain relief for up to 72 hours following surgery.

In comparison to its competitors, HRTX stands out due to its innovative product portfolio and patented technologies. The Biochronomer Technology, for example, enables the company to deliver therapeutic levels of various pharmacological agents over extended periods, ensuring consistent drug levels and improved patient outcomes.

Although the text does not explicitly mention specific customers, it is evident that HRTX's products are distributed within the United States through a limited number of specialty distributors and full-line wholesalers. These intermediaries then resell the products to healthcare providers and hospitals, which are the end-users of HRTX's offerings.

Heron Therapeutics' brand names and trade names include ZYNRELEF, APONVIE, SUSTOL, CINVANTI, and Biochronomer Technology. Each of these names represents a unique product or technology that contributes to the company's mission of improving patient care and advancing medical standards.

Stock Price Chart

Analysis

Pros

Healthy cash reserves of 43.07M provide 55.22x coverage of short-term debt 780000, demonstrating strong liquidity position and minimal refinancing risk.
Cash reserves of 43.07M provide solid 9.18x coverage of other non-current liabilities 4.69M, indicating strong liquidity.
Short-term investments of 12.42M provide 15.92x coverage of short-term debt 780000, showing strong liquidity management.
Strong R&D investment of 11.86M at 14.02x of capex 846000 shows balanced investment in innovation and infrastructure.
Tangible assets of 248.95M provide robust 2.78x coverage of current liabilities 89.71M, showing strong asset backing.

Cons

Operating cash flow of (30.19M) barely covers its investment activities of 32.88M, with a coverage ratio of -0.92, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
The company's operating cash flow of (30.19M) shows concerning coverage of stock compensation expenses of 10.46M, with a -2.89 ratio indicating potential earnings quality issues.
Free cash flow of (31.03M) provides weak coverage of capital expenditures of 846000, with a -36.68 ratio suggesting additional external financing needs for growth initiatives.
Operating earnings of (11.10M) show weak coverage of depreciation charges of 2.36M, with a -4.71 ratio indicating high capital intensity and potential reinvestment needs.
R&D investment of 11.86M represents just 0.12x of SG&A expenses of 101.18M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer Comparison

Companies in the Biotechnology

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SMMT	Summit Therapeutics Inc.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	1.58	12.31
EV to Cash from Ops.	-13.01	23.25
EV to Debt	2.80	738.44
EV to EBIT	-35.40	-9.16
EV to EBITDA	99.30	6.95
EV to Free Cash Flow [EV/FCF]	-12.66	21.90
EV to Market Cap	1.69	65.67
EV to Revenue	2.53	227.32
Price to Book Value [P/B]	15.62	22.34
Price to Earnings [P/E]	-17.12	-11.77

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-11.94
Dividend Payout Ratio %	0.00	0.16
Dividend per Basic Share	0.00	0.01
FCF Dividend Payout Ratio %	0.00	-0.14
Interest Coverage	-4.47	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	35.17	-27.13
Cash and Equivalents Growth (1y) %	67.31	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	59.60	-46.93
EBITDA Growth (1y) %	116.98	-1.68
EBIT Growth (1y) %	59.60	-56.45
EBT Growth (1y) %	51.45	-12.70
EPS Growth (1y) %	50.00	-28.31
FCF Growth (1y) %	-223.29	-31.90
Gross Profit Growth (1y) %	15.30	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.62	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	0.48	3.85
Current Ratio	2.56	7.27
Debt to Equity Ratio	9.44	0.40
Interest Cover Ratio	-4.47	841.00
Times Interest Earned	-4.47	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	-5.60	-18,234.31
EBIT Margin %	-7.15	-18,580.80
EBT Margin %	-8.75	-19,488.74
Gross Margin %	73.90	-7.59
Net Profit Margin %	-8.80	-19,439.22

Heron Therapeutics, Inc. /De/ (NASDAQ: HRTX)