Heron Therapeutics, Inc. Adopts Tax Benefits Preservation Plan to Protect NOL Assets and Shareholder Value
Rights Plan Adoption: Heron Therapeutics has adopted a Section 382 rights plan to protect its net operating loss carryforwards (NOLs) and other tax attributes, which are crucial for offsetting future taxable income. This plan aims to prevent any single investor from acquiring more than 4.99% of the company's stock, thereby safeguarding the value of the NOLs.
Company Overview: Heron Therapeutics is a biotechnology company focused on developing therapeutic innovations for improving patient care, particularly in acute care and oncology. The company emphasizes its commitment to advancing medical standards through its patented technologies and drug development strategies.
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- Revenue Growth: Heron Therapeutics reported approximately $40.5 million in net revenue for Q4 2025, reflecting significant growth compared to the previous year, driven particularly by strong momentum in its Acute Care franchise, especially ZYNRELEF and APONVIE.
- Product Performance: ZYNRELEF generated approximately $12.5 million in net revenue in Q4, marking the largest quarter-over-quarter revenue increase within the portfolio, indicating successful market acceptance and sales strategies.
- Diversified Revenue Streams: CINVANTI and APONVIE contributed approximately $22.9 million and $3.8 million in net revenue for Q4, respectively, enhancing the diversity of the company's revenue sources and reducing reliance on any single product.
- Annual Performance: Total net revenue for FY25 was approximately $154.9 million, reflecting ongoing progress and growth potential across all business areas, suggesting a positive outlook for future developments.
- Revenue Growth: Heron Therapeutics reported approximately $40.5 million in net revenue for Q4 2025, reflecting strong momentum in its Acute Care franchise, particularly driven by ZYNRELEF® and APONVIE®.
- Product Performance: ZYNRELEF® generated about $12.5 million in net revenue in Q4, marking a ~35% increase from Q3, indicating sustained demand in the postoperative pain management market and enhancing the company's competitive edge.
- Diversified Revenue Streams: CINVANTI® and SUSTOL® achieved net revenues of approximately $22.9 million and $1.3 million in Q4, respectively, further solidifying Heron's market position in the prevention of chemotherapy-induced nausea and vomiting.
- Strategic Outlook: With total net revenue of approximately $154.9 million for 2025, Heron demonstrates ongoing innovation and market expansion capabilities in the biotechnology sector, laying a solid foundation for future growth.

Validea's Growth/Value Investor Model: The model, based on James P. O'Shaughnessy's strategy, evaluates large-cap value and growth stocks, with a recent upgrade for Heron Therapeutics Inc (HRTX) from 50% to 100% based on its fundamentals and valuation.
Company Overview: Heron Therapeutics is a biotechnology company focused on developing therapeutic innovations for acute care and oncology patients, with products like ZYNRELEF, APONVIE, CINVANTI, and SUSTOL aimed at improving patient care.
Investment Strategy Insights: O'Shaughnessy's research challenges traditional investment beliefs, suggesting that price/earnings ratios are not the best indicators of stock value and that small-cap stocks do not necessarily outperform large-cap stocks.
Validea's Research Service: Validea provides investment research based on the strategies of renowned investors, offering stock analysis and model portfolios designed to outperform the market over time.

- FDA Approval: APONVIE is the only FDA-approved IV NK-1 antagonist, enabling rapid administration in 30 seconds, significantly reducing the risk of postoperative nausea and vomiting (PONV) by 30%, thereby enhancing patient satisfaction post-surgery.
- Clinical Guidelines Recognition: APONVIE's inclusion in the latest Consensus Guidelines for the Management of Postoperative Nausea and Vomiting underscores its critical role in multimodal prophylaxis, reflecting broad clinical acceptance and solidifying Heron's leadership in the biopharmaceutical sector.
- Market Opportunity: With an increasing number of surgeries performed in outpatient and short-stay settings, APONVIE presents substantial market potential to help reduce postoperative complications, enhancing patient confidence at home and potentially increasing Heron's market share and brand influence.
- Long-term Impact: By promoting APONVIE, Heron aims to improve postoperative recovery experiences for patients while encouraging clinicians to utilize long-acting antiemetics before discharge, thereby further decreasing the incidence of PONV and enhancing overall healthcare quality.

APONVIE Overview: APONVIE is the only FDA-approved IV formulation of the NK-1 antagonist aprepitant, indicated for preventing postoperative nausea and vomiting (PONV) in adults, with a rapid onset and long half-life compared to oral alternatives.
Efficacy in PONV Prevention: Aprepitant, whether used alone or in combination with other therapies, significantly reduces the risk of PONV and is more effective than 5-HT3 receptor antagonists, making it a preferred choice for postoperative care.
Guidelines for Postoperative Care: The newly released PONV Guidelines emphasize the importance of long-acting antiemetics like APONVIE to mitigate post-discharge nausea and vomiting (PDNV), which affects a significant number of patients after surgery.
Clinical Implications: The guidelines advocate for a multimodal approach to PONV prevention, particularly for high-risk patients, highlighting the need for clinicians to be aware of and adhere to these recommendations to enhance patient recovery experiences.

Validea's Growth/Value Investor Model: The model, based on James P. O'Shaughnessy's strategy, evaluates large-cap value and growth stocks, with a recent upgrade for Heron Therapeutics Inc (HRTX) from 75% to 100% due to strong fundamentals and valuation.
Company Overview: Heron Therapeutics is a biotechnology company focused on developing therapeutic innovations for acute care and oncology, with products like ZYNRELEF, APONVIE, CINVANTI, and SUSTOL aimed at improving patient care.
Investment Strategy Insights: O'Shaughnessy's research challenges traditional investment beliefs, emphasizing that price/earnings ratios may not be the best value indicators and that small-cap stocks do not necessarily outperform large-cap stocks.
Validea's Research Service: Validea provides investment analysis and model portfolios based on the strategies of renowned investors, aiming to help users identify stocks that have historically outperformed the market.






