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Heron Therapeutics (HRTX)

Heron Therapeutics, Inc. is a commercial-stage biotechnology company focused on improving the lives of patients by developing best-in-class treatments to address some of the most important unmet patient needs. Heron is developing novel, patient-focused solutions that apply its innovative science and technologies to already-approved pharmacological agents for patients suffering from pain or cancer.

Company profile

Ticker
HRTX
Exchange
Website
CEO
Barry Quart
Employees
Incorporated
Location
Fiscal year end
Former names
ADVANCED POLYMER SYSTEMS INC /DE/, AP PHARMA INC /DE/
SEC CIK
IRS number
942875566

HRTX stock data

Analyst ratings and price targets

Last 3 months

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

9 Aug 22
12 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 48.61M 48.61M 48.61M 48.61M 48.61M 48.61M
Cash burn (monthly) 2.77M 11.88M 16.5M 18.14M 9.46M 14.23M
Cash used (since last report) 3.98M 17.07M 23.71M 26.07M 13.59M 20.45M
Cash remaining 44.63M 31.54M 24.9M 22.54M 35.02M 28.16M
Runway (months of cash) 16.1 2.7 1.5 1.2 3.7 2.0

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
25 Jul 22 Lisa Peraza Employee Stock Option Common Stock Grant Acquire A No No 3.17 60,902 193.06K 60,902
25 Jul 22 Manhard Kimberly Employee Stock Option Common Stock Grant Acquire A No No 3.17 165,961 526.1K 165,961
25 Jul 22 John Poyhonen Employee Stock Option Common Stock Grant Acquire A No No 3.17 165,961 526.1K 165,961
25 Jul 22 David Leslie Szekeres Employee Stock Option Common Stock Grant Acquire A No No 3.17 165,961 526.1K 165,961
13 Jul 22 Manhard Kimberly Common Stock Payment of exercise Dispose F No No 3.01 2,012 6.06K 14,674
13 Jul 22 Manhard Kimberly Common Stock Option exercise Acquire M No No 0 4,564 0 16,686
13 Jul 22 Manhard Kimberly Common Stock Option exercise Acquire M No No 0 1,250 0 12,122
13 Jul 22 Manhard Kimberly RSU Common Stock Option exercise Dispose M No No 0 4,564 0 41,628
13 Jul 22 Manhard Kimberly RSU Common Stock Option exercise Dispose M No No 0 1,250 0 11,250
13F holders Current Prev Q Change
Total holders 192 205 -6.3%
Opened positions 23 35 -34.3%
Closed positions 36 30 +20.0%
Increased positions 75 66 +13.6%
Reduced positions 47 57 -17.5%
13F shares Current Prev Q Change
Total value 672.18M 2.47B -72.8%
Total shares 125.39M 125.43M -0.0%
Total puts 365.1K 1.08M -66.2%
Total calls 1.25M 1.36M -8.0%
Total put/call ratio 0.3 0.8 -63.2%
Largest owners Shares Value Change
STT State Street 12.92M $73.92M +68.0%
BEN Franklin Resources 11.88M $67.95M -0.7%
Vanguard 9.93M $56.83M +3.4%
Ubs Oconnor 9.85M $56.33M +19.0%
BLK Blackrock 8.16M $46.65M +6.2%
Baker Bros. Advisors 8.13M $46.51M 0.0%
Tang Capital Partners 7.78M $0 0.0%
ArrowMark Colorado 6.59M $37.68M +2.8%
JPM JPMorgan Chase & Co. 6.13M $35.04M -2.1%
Tang Capital Management 3.72M $21.28M -52.2%
Largest transactions Shares Bought/sold Change
STT State Street 12.92M +5.23M +68.0%
Tang Capital Management 3.72M -4.06M -52.2%
Sofinnova Investments 11.06K -2.92M -99.6%
Ubs Oconnor 9.85M +1.57M +19.0%
Citadel Advisors 211.57K -1.48M -87.5%
Rothschild & Co Asset Management Us 0 -1.38M EXIT
BAC Bank Of America 1.61M +1.26M +365.4%
MS Morgan Stanley 1.47M +1.18M +403.4%
Norges Bank 0 -808.96K EXIT
D. E. Shaw & Co. 2.03M +683.74K +50.6%

Financial report summary

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Risks
  • If we are unable to develop and maintain sales, marketing and distribution capabilities or enter into agreements with third parties to sell and market our Products, our Product Candidates or any other products we may develop, our sales may be adversely affected.
  • If we cannot establish satisfactory pricing of our Products, our Product Candidates or any other products we may develop that is also acceptable to the U.S. government, insurance companies, managed care organizations and other payors, or arrange for favorable reimbursement policies, our product sales may be adversely affected and our future revenue may suffer.
  • Because the results of preclinical studies and clinical trials are not necessarily predictive of future results, we can provide no assurances that our Products, Product Candidates or any of our other future product candidates will have favorable results in future studies or receive regulatory approval or expansion of approved indications.
  • Interim, topline or preliminary data from our clinical trials that we announce or publish may change as more patient data become available and are subject to audit and verification procedures that could result in material changes in the final data.
  • Although the FDA might grant Fast Track, Breakthrough Therapy and Priority Review designations to our Products and Product Candidates, there can be no assurance that any of our Products, Product Candidates or future product candidates that receive similar designations in the U.S. or in any other regulatory jurisdictions will receive regulatory approval any sooner than other product candidates that do not have such designations, or at all.
  • Our product platforms or product development efforts may not produce safe, efficacious or commercially viable products, and, if we are unable to develop new products, our business may suffer.
  • We rely on third parties to conduct our preclinical testing and conduct our clinical trials, and their failure to perform their obligations in a timely and competent manner may delay development and commercialization of our Products and Product Candidates and our business could be substantially harmed.
  • If our suppliers or contract manufacturers are unable to manufacture in commercially viable quantities, we could face delays in our ability to commercialize our Products, our Product Candidates or any other products we may develop, our costs will increase and our Product sales may be severely hindered.
  • We depend on third-party suppliers and contract manufacturers to manufacture our Products and our Product Candidates, and we expect to do the same for any future products that we develop; if our contract manufacturers do not perform as expected, our business could suffer.
  • Certain of the components used in the manufacture of our Products, our Product Candidates and our other product candidates are, or might be, sourced from a single vendor.
  • We have, or may have, significant inventory levels of drug products, and write-downs related to the impairment of those inventories may adversely impact or delay our profitability.
  • It is difficult to predict commercial demand for our Products, and, if our estimates of demand are too low, it may adversely impact our ability to generate revenue and profits in the short term and our ability to establish and maintain a competitive position in the relevant markets where our Products are sold, or may be sold, in the future.
  • We face intense competition from other companies developing products for the management of postoperative pain or the prevention of CINV and PONV.
  • Our Products and our Product Candidates may face competition from lower-cost generic products offered by our competitors.
  • Our business and results of operations may suffer as a result of changes in our pricing or marketing strategies.
  • If we are unable to recruit and retain skilled employees, we may not be able to achieve our objectives.
  • We may not realize the expected benefits of our cost-saving initiatives.
  • Our business strategy may include acquisitions of other businesses, products or product licenses. We may not be able to successfully manage such activities.
  • Our business strategy may include entry into collaborative agreements. We may not be able to enter into collaborative agreements or may not be able to negotiate commercially acceptable terms for these agreements.
  • Our business, financial condition, results of operations, growth and corporate culture could be harmed by the effects of the ongoing COVID-19 pandemic and actions taken in response to the COVID-19 pandemic.
  • Natural or man-made disasters, including epidemics, pandemics, acts of war or terrorism, or resource shortages, could disrupt our investigational drug candidate development and approved drug commercialization efforts or have other negative consequences on our business and adversely affect results.
  • We have a history of losses, we expect to generate losses in the near future, and we may never achieve or maintain profitability.
  • Additional capital may be needed in the future to enable us to implement our business plan, and we may be unable to raise capital, which would force us to limit or cease our operations and related product development programs.
  • We may not be able to raise additional capital when needed or desired, or we may need to raise additional capital on unfavorable terms, which could result in dilution to existing stockholders.
  • Provisions contained in our debt instruments limit our ability to incur additional indebtedness.
  • We could be exposed to significant product liability claims that could be time-consuming and costly to defend, divert management attention and adversely impact our ability to obtain and maintain insurance coverage.
  • If any of our services providers are characterized as employees, we would be subject to employment and tax withholding liabilities and other additional costs.
  • The investment of our cash is subject to risks, which may cause losses or adversely affect the liquidity of these investments and our results of operations, liquidity and financial condition.
  • Drug development involves a lengthy and expensive process with an uncertain outcome, and results of earlier studies and trials may not be predictive of future trial results.
  • Delays in clinical testing could increase our costs and delay our ability to obtain regulatory approval and commercialize our Product Candidates.
  • We may not obtain regulatory approval for our Product Candidates in development. Regulatory approval may also be delayed or revoked or may impose limitations on the indicated uses of a Product Candidate. If we are unable to obtain regulatory approval for our Product Candidates in development, our business will be substantially harmed.
  • Failure to obtain regulatory approval in international jurisdictions would prevent our Products, our Product Candidates or any other products we may develop from being marketed abroad.
  • Even if our Product Candidates in development receive regulatory approval, they may still face future development and regulatory difficulties. If we fail to comply with continuing federal, state and foreign regulations, we could lose our approvals to market drugs, and our business would be seriously harmed.
  • The commercial use of our Products may cause unintended side effects or adverse reactions, or incidents of misuse may occur, which could adversely affect our business.
  • If we cannot establish pricing of our Products acceptable to the U.S. or foreign governments, insurance companies, managed care organizations and other payors, or arrange for favorable reimbursement policies, our Product sales will be severely hindered.
  • The pharmaceutical industry is subject to significant regulation and oversight pursuant to anti-kickback laws, false claims statutes and anti-corruption laws, which may result in significant additional expense and limit our ability to commercialize our Products and our Product Candidates. In addition, any failure to comply with these regulations could result in substantial fines or penalties.
  • Health care reform could increase our expenses and adversely affect the commercial success of our Products, our Product Candidates and any other product candidates we may develop.
  • Our employees may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements, which could have a material adverse effect on our business.
  • We are subject to certain data privacy and security requirements, which are very complex and difficult to comply with at times. Any failure to ensure adherence to these requirements could subject us to fines, penalties and damage our reputation.
  • Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.
  • If we are unable to adequately protect or enforce our intellectual property rights, we may lose valuable assets or incur costly litigation to protect our rights.
  • We may infringe on the intellectual property rights of others, and any litigation could force us to stop developing or selling potential products and could be costly, divert management attention and harm our business.
  • The price of our common stock has been and may continue to be volatile.
  • Our certificate of incorporation, our bylaws and Delaware law contain provisions that could discourage another company from acquiring us and may prevent attempts by our stockholders to replace or remove our current management.
  • Future utilization of net operating loss carryforwards or research and development credit carryforwards may be impaired due to recent changes in ownership.
  • Our business could be negatively affected as a result of the actions of activist stockholders.
  • If we identify a material weakness in our internal control over financial reporting, our ability to meet our reporting obligations and the trading price of our common stock could be negatively affected.
  • Because we do not anticipate paying any cash dividends on our common stock in the foreseeable future, capital appreciation, if any, will be the source of gain for our stockholders.
Management Discussion
  • For the year ended December 31, 2021, net product sales were $86.3 million, compared to $88.6 million for the same period in 2020.
  • For the year ended December 31, 2021, net product sales of CINVANTI were $73.5 million, compared to $87.8 million for the same period in 2020. The decrease in net product sales of CINVANTI for the year ended December 31, 2021 was due to the COVID-19 pandemic related reduction in cancer screening procedures resulting in fewer new patient treatment starts, as well as the lingering impact of generic arbitrage. CMS reimbursement rates for any buy-and-bill products are based on the Average Selling Price (“ASP”) of that product, including any generic products with the same J-code, plus 6%. ASP is based on a historical four-quarter rolling average calculation, which becomes effective two quarters later. This four-quarter averaging period and two-quarter lag means that when generic products first enter the market, they benefit from being able to be reimbursed at a much higher ASP relative to the actual sale price. This period of time when generic products receive higher reimbursement rates than sale price is known as “generic arbitrage,” and it can last several quarters. Generic versions of EMEND® IV (fosaprepitant) launched in September 2019 and compete with CINVANTI. Although the impact of this generic arbitrage continues to linger in certain accounts, we expect growth of net product sales for our oncology care franchise in 2022 and beyond.
  • For the year ended December 31, 2021, net product sales of SUSTOL were $9.9 million, compared to $0.8 million for the same period in 2020. On October 1, 2019, we made a business decision to discontinue all discounting of SUSTOL to improve the reimbursement and net selling price of the product, which resulted in significantly lower SUSTOL net product sales in 2020. In the first quarter of 2021, we reinstated the promotion and contracting of SUSTOL, resulting in higher net product sales for the year ended December 31, 2021, compared to the same period in 2020.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Good
New words: award, Book, complaint, disaggregated, District, doubt, earliest, empowering, excessive, external, great, hampered, headcount, inflation, Kabifrom, moratorium, occasionally, Orange, outpace, pausing, procure, relief, resignation, resolution, restate, scheduled, Secretary, Senate, situation, stalled, streamlined, title, unenforceable, vigorously, void
Removed: collectability, earned, field