Heron Therapeutics is the Pfizer (PFE) for chemotherapy side effects and post-operative pain.

Heron Therapeutics is the Merck (MRK) for oncology supportive care and surgical pain management.

• SUSTOL®: An extended-release granisetron injection indicated for the prevention of chemotherapy-induced nausea and vomiting (CINV).
• CINVANTI®/APONTI®: A neurokinin-1 (NK1) receptor antagonist combined with palonosetron, available as an intravenous (CINVANTI) or oral (APONTI) formulation, for the prevention of acute and delayed chemotherapy-induced nausea and vomiting (CINV).
• ZYNRELEF®: An extended-release, dual-acting local anesthetic combining bupivacaine and meloxicam, indicated for the management of postoperative pain.

Major Customers of Heron Therapeutics (HRTX)

Heron Therapeutics (HRTX) sells its pharmaceutical products primarily to a limited number of wholesale pharmaceutical distributors. These distributors, in turn, sell the products to hospitals, oncology clinics, and other healthcare providers.

Based on their financial filings, the following three major wholesale distributors accounted for substantially all of Heron Therapeutics' gross product sales:

• AmerisourceBergen (Symbol: ABC)
• Cardinal Health (Symbol: CAH)
• McKesson (Symbol: MCK)

• Wavelength Pharmaceuticals, Ltd.
• Evonik Operations GmbH (Symbol: EVK.DE)
• Catalent, Inc. (Symbol: CTLT)
• Hovione Inter SA
• Fresenius SE & Co. KGaA (Symbol: FMS)
• Sandoz Group AG (Symbol: SDZ.SW)
• Baxter International Inc. (Symbol: BAX)

Craig Collard, Chief Executive Officer. Mr. Collard most recently served as CEO of Veloxis Pharmaceutics A/S until its acquisition by Asahi Kasei Corp. from 2015 to December 2021. Prior to Veloxis, he was CEO and Chairman of the Board of Cornerstone Therapeutics, Inc. until its acquisition by Chiesi Farmaceutici S.p.A. in 2014. He also served as Founder, President, and CEO of Cornerstone BioPharma Inc. and founded Carolina Pharmaceuticals, Inc. in 2003. Mr. Collard also served as Chairman of Opiant Pharmaceuticals, Inc. until its acquisition by Indivior in March 2023, and was on the board of Sierra Oncology, Inc. until its acquisition by GlaxoSmithKline plc.

Ira Duarte, Executive Vice President, Chief Financial Officer. Ms. Duarte joined Heron in June 2023. She previously held financial leadership roles, including Chief Financial Officer, at Veloxis Pharmaceuticals, Inc. from 2016 to 2023. Before that, Ms. Duarte was Corporate Controller at BioDelivery Sciences, Inc. and Senior Director of Corporate Finance for Chiesi USA, Inc. She was also a core member of the team that guided the sale of Cornerstone Therapeutics, Inc. to Chiesi Farmaceutici S.p.A.

William Forbes, Executive Vice President, Chief Development Officer. Dr. Forbes joined Heron in June 2023 and brings over 30 years of pharmaceutical product development experience, contributing to 14 marketing approvals in the U.S. and European markets.

Mark Hensley, Chief Operating Officer. Mr. Hensley has been the Chief Operating Officer of Heron Therapeutics since May 2025. He previously served as the Chief Executive Officer of Veloxis Pharmaceuticals, Inc. from 2021 to 2024, and as Chief Operating Officer and Chief Commercial Officer from 2018 to 2021.

Brett Fleshman, Chief Business Officer. Mr. Fleshman joined Heron in August 2024, bringing 25 years of experience in corporate and business development, commercial strategy, and marketing of pharmaceuticals, biologics, and surgical devices. He previously served as Managing Director at NovaQuest Capital Management and as Vice President of Strategy and Corporate Development for Veloxis Pharmaceuticals, where he helped formulate a turnaround commercialization strategy that led to the company's acquisition by Asahi Kasei.

Heron Therapeutics (HRTX) faces several significant risks to its business, primarily centered around its financial viability and product commercialization.

1. Profitability Challenges and Negative Free Cash Flow: Heron Therapeutics has consistently reported negative earnings per share (EPS) and significant negative free cash flow, indicating that the company is not yet profitable and is burning cash. This ongoing challenge to achieve profitability is a critical hurdle for the biotech firm. The company's high debt-to-equity ratio further amplifies the risk associated with its loss-making status.
2. Commercial Execution and Market Adoption of Products: A key risk to Heron's investment thesis is its ability to successfully execute commercially, particularly with products like Zynrelef. Delays in Zynrelef's growth could occur if doctors are slow to adopt the expanded label for the drug in additional surgical procedures.
3. Competition and Revenue Decline from Existing Products: The company faces risks from competitive pressures, including the impact of generic alternatives on its existing product portfolio. For instance, Sustol has experienced a notable decline in revenue due to competition from generics like palonosetron. Underperformance of other drugs, even in the context of Zynrelef sales growth, could also lead to a decrease in stock value.

Heron Therapeutics' main products target distinct addressable markets in pain management and oncology care.

• ZYNRELEF (postoperative pain management): The addressable market for ZYNRELEF in the U.S. is estimated to cover approximately 13 million surgical procedures annually, following an expanded indication in January 2024. This represents an 86% increase over previously indicated procedures.
• CINVANTI and SUSTOL (chemotherapy-induced nausea and vomiting (CINV) prevention): The global market for CINV drugs, which includes CINVANTI and SUSTOL, was valued at approximately $6.41 billion (US$6,412.0 million) at the end of 2023. This market is projected to reach approximately $12.69 billion (US$12,688.0 million) by 2034, growing at a CAGR of 6.4%.
• APONVIE (postoperative nausea and vomiting (PONV) prevention): Null.

Heron Therapeutics (HRTX) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and product performances in its acute care franchise:

1. Continued Growth and Market Penetration of ZYNRELEF: Heron's extended-release solution for post-surgical pain, ZYNRELEF, is projected to be a significant revenue driver. This growth is fueled by increasing demand, the successful transition to the Vial Access Needle (VAN), and improved reimbursement processes due to a permanent J-code that became effective on October 1, 2025. Additionally, the launch of a reorganized and dedicated ZYNRELEF sales team, along with enhanced distributor incentives, is expected to further boost its adoption and sales.
2. Accelerated Growth and Market Expansion of APONVIE: APONVIE, Heron's intravenous formulation for postoperative nausea and vomiting (PONV), is emerging as a rapidly growing product. Its growth is largely supported by the July 2025 launch of a dedicated sales team focused on high-potential hospital accounts. These efforts are expected to increase physician awareness and education, further driving demand. The anticipated inclusion of APONVIE in upcoming PONV prophylaxis consensus guidelines, expected in Q4 2025, is also poised to accelerate its market adoption.
3. Future Product Enhancements and Pipeline Development: A key driver for future revenue is the ongoing development and anticipated approval of the ZYNRELEF Prefilled Syringe (PFS) program. The approval submission for the PFS is on track for 2026, which could enhance product usability and expand its market appeal upon launch.
4. Strategic Focus on the Acute Care Franchise: Heron Therapeutics has strategically pivoted towards the acute care market, emphasizing the combined performance of ZYNRELEF and APONVIE. This strategic focus, coupled with robust commercial initiatives and expanding adoption across the acute care portfolio, is expected to generate significant year-over-year revenue growth.

Share Issuance

• Heron Therapeutics completed a private placement in August 2022, issuing 16,129,032 shares of common stock and pre-funded warrants for up to 8,548,387 shares, resulting in gross proceeds of approximately $76.5 million.
• As part of a comprehensive capital restructuring in August 2025, the company issued common and preferred equity in a private placement, generating $27.7 million in gross proceeds.
• The August 2025 capital restructuring also involved the conversion of $25.0 million of existing 1.5% senior convertible notes due 2026 into common stock.

Inbound Investments

• A private placement in August 2022 saw investments from new and existing institutional investors, including Deep Track Capital, LP, Great Point Partners, and Broadfin Holdings, LLC, totaling approximately $76.5 million.
• In August 2025, Heron Therapeutics secured a new senior credit facility with Hercules Capital, Inc., providing $110.0 million in committed capital at closing, with an additional $40.0 million available upon achieving certain milestones.
• The August 2025 capital restructuring also included a private placement that brought in $27.7 million from select investors through the issuance of common and preferred equity.

Capital Expenditures

• For the year ended December 31, 2022, total capital expenditures were reported as $0.7 million.
• Capital expenditures in the last 12 months (up to approximately November 2025) were -$955,000.
• Projected capital expenditures are $5 million for 2025, $5 million for 2026, and $6 million for 2027.