10 Hot Biotech Stocks Under $5

7. Heron Therapeutics, Inc. (NASDAQ:HRTX)

Potential Upside: 152.00%

Number of Hedge Fund Holders: 17

Heron Therapeutics, Inc. (NASDAQ:HRTX) has advanced its commercial-stage biotech portfolio, concentrating on novel drug delivery systems that improve patient care. Its Biochronomer technology allows extended drug release, making its treatments highly effective for managing chemotherapy nausea, post-surgery pain, and other conditions. With a robust pipeline and growing product use, Heron is cementing its position in the biotech industry.

Financially, Heron Therapeutics, Inc. (NASDAQ:HRTX) posted a total net revenue of $144.2 million for the year ended December 31, 2024, up 14% from the prior year. The company reached profitability in Q4 with $3.6 million in net income, a significant improvement from a $10.7 million loss in Q4 2023. Yearly adjusted EBITDA hit $8.6 million, reflecting improved operational efficiency and cost management. CINVANTI, its main injectable antiemetic, bounced back strongly with over $100 million in 2024 sales. Meanwhile, ZYNRELEF, the company’s post-op pain therapy, reached record revenues of $8.5 million in Q4, increasing 33% from the previous quarter. The company finished the year with $59.3 million in cash, giving it stable funding for growth.

Heron Therapeutics, Inc. (NASDAQ:HRTX) scored a major legal win on December 3, 2024, when the U.S. District Court ruled in the company’s favor in a patent dispute with Fresenius Kabi USA, LLC. The court upheld Heron’s CINVANTI patents, which remain protected until 2035. This prevents immediate generic competition, strengthening Heron’s market position and revenue stability.

Moreover, the company has significant momentum in its acute care products, with APONVIE and ZYNRELEF showing substantial yearly growth. ZYNRELEF now has broader coverage under the NOPAIN Act and enhanced ease of use with its new vial access needle (VAN), which should speed up adoption in 2025.

Heron Therapeutics, Inc. (NASDAQ:HRTX) is set for continued growth. Strong finances, increasing product adoption, and secure patent protection make it a hot biotech stock.