Positive Outlook for Heron Therapeutics Driven by Zynrelef and Aponvie Growth
Heron Therapeutics is experiencing positive growth, particularly with its products Zynrelef and Aponvie. Zynrelef has seen a 49% year-over-year revenue increase due to heightened demand and improved reimbursement access. Aponvie's growth is supported by a newly trained sales team. Despite some challenges in the oncology sector, the overall outlook remains optimistic, with strategic investments and potential inclusion in clinical guidelines. Needham has maintained a Buy rating on the stock with a $3.00 price target.
Clara Dong’s rating is based on several positive developments for Heron Therapeutics. The company’s product, Zynrelef, has shown significant revenue growth, driven by increased demand, a successful transition to the Vial Access Needle (VAN), and improved access through a new J-code for reimbursement. These factors have contributed to a 49% year-over-year increase in revenue for Zynrelef, with management expecting this momentum to continue into the next quarter and beyond.
Additionally, the company’s Aponvie product has experienced substantial growth, supported by a newly trained and dedicated sales team. This team is expected to further drive demand as they increase physician awareness and education. Despite some challenges in the oncology franchise, with modest declines in Cinvanti and Sustol, the overall outlook for Heron Therapeutics remains positive, bolstered by strategic investments in sales and anticipated inclusion in upcoming clinical guidelines.
In another report released today, Needham also maintained a Buy rating on the stock with a $3.00 price target.
