Heron Therapeutics (Heron Therapeutics) Gross Margin % : 71.12% (As of Dec. 2023)

View and export this data going back to 1987. Start your Free Trial

What is Heron Therapeutics Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Heron Therapeutics's Gross Profit for the three months ended in Dec. 2023 was $24.3 Mil. Heron Therapeutics's Revenue for the three months ended in Dec. 2023 was $34.2 Mil. Therefore, Heron Therapeutics's Gross Margin % for the quarter that ended in Dec. 2023 was 71.12%.

Warning Sign:

Heron Therapeutics Inc gross margin has been in long-term decline. The average rate of decline per year is -5.9%.

The historical rank and industry rank for Heron Therapeutics's Gross Margin % or its related term are showing as below:

HRTX' s Gross Margin % Range Over the Past 10 Years
Min: 46.7 Med: 58.48 Max: 97.26
Current: 48.75

During the past 13 years, the highest Gross Margin % of Heron Therapeutics was 97.26%. The lowest was 46.70%. And the median was 58.48%.

HRTX's Gross Margin % is ranked worse than
61.98% of 739 companies
in the Biotechnology industry
Industry Median: 59.43 vs HRTX: 48.75

Heron Therapeutics had a gross margin of 71.12% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Heron Therapeutics was -5.90% per year.

Heron Therapeutics Gross Margin % Historical Data

The historical data trend for Heron Therapeutics's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Heron Therapeutics Gross Margin % Chart

Heron Therapeutics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

57.79

59.17

46.70

49.04

48.75

Heron Therapeutics Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															57.95	43.09	36.53	42.08	71.12

Competitive Comparison of Heron Therapeutics's Gross Margin %

For the Biotechnology subindustry, Heron Therapeutics's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Heron Therapeutics's Gross Margin % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Heron Therapeutics's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Heron Therapeutics's Gross Margin % falls into.

Heron Therapeutics Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Heron Therapeutics's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	61.9	/	127.044
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(127.044 - 65.105)	/	127.044
	=	48.75 %

Heron Therapeutics's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	24.3	/	34.233
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(34.233 - 9.885)	/	34.233
	=	71.12 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Heron Therapeutics (NAS:HRTX) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Heron Therapeutics had a gross margin of 71.12% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Heron Therapeutics Gross Margin % Related Terms

Thank you for viewing the detailed overview of Heron Therapeutics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Heron Therapeutics (Heron Therapeutics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Heron Therapeutics Inc (NAS:HRTX) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

AXD2:Germany AXD2:Germany

Address

4242 Campus Point Court, Suite 200, San Diego, CA, USA, 92121

Website

https://www.herontx.com

Heron Therapeutics Inc is a commercial-stage biotechnology company. It is focused on improving the lives of patients by developing treatments that address some of the unmet patient needs. The company's product portfolio consists of SUSTOL, ZYNRELEF, and CINVANTI. Its pipeline product is HTX-011.

Executives

William P Forbes	officer: EVP, Chief Development Officer	C/O SALIX PHARMACEUTICALS, LTD., 8510 COLONNADE CENTER DRIVE, RALEIGH NC 27615
Adam Morgan	other: See Footnote 2	1055B POWERS PLACE, ALPHARETTA GA 30009
Ira Duarte	officer: EVP, Chief Financial Officer	1255 CRESCENT GREEN DRIVE, SUITE 250, CARY NC 27518
Craig A Collard	director	C/O CORNERSTONE THERAPEUTICS INC., 1255 CRESCENT GREEN DRIVE, SUITE 250, CARY NC 27518
Kevin Kotler	director	C/O BROADFIN CAPITAL, LLC, 300 PARK AVENUE, 25TH FLOOR, NEW YORK NY 10022
Velan Capital Master Fund Lp	other: See Footnote 2	1055B POWERS PLACE, ALPHARETTA GA 30009
Velan Capital Management Llc	other: See Footnote 2	1055B POWERS PLACE, ALPHARETTA GA 30009
Velan Capital Holdings Llc	other: See Footnote 2	1055B POWERS PLACE, ALPHARETTA GA 30009
Velan Capital Investment Management Lp	other: See Footnote 2	1055B POWERS PLACE, ALPHARETTA GA 30009
David Efraim Rosen	other: See Footnote 1	155 EAST 44TH ST., SUITE 1630, NEW YORK NY 10017
Rubric Capital Management Lp	other: See Footnote 1	155 EAST 44TH ST, SUITE 1630, NEW YORK NY 10017
Balaji Venkataraman	other: See Footnote 2	FIRST HORIZON PHARMACEUTICAL CORP, 660 HEMBREE PKWY STE 106, ROSWELL GA 30076
Kimberly Manhard	director	C/O HERON THERAPEUTICS, INC, 4242 CAMPUS POINT COURT, SUITE 200, SAN DIEGO CA 92121
Craig A Johnson	director	C/O PURE BIOSCIENCE, 1725 GILLESPIE WAY, EL CAJON CA 92020
Waage Christian	director	RECEPTOS, INC., 10835 ROAD TO THE CURE, SUITE 205, SAN DIEGO CA 92121