[Company Announcement & Executive Summary](index=1&type=section&id=Company%20Announcement%20%26%20Executive%20Summary) [Q2 2025 Financial Results and Commercial Progress](index=1&type=section&id=Q2%202025%20Financial%20Results%20and%20Commercial%20Progress) Heron Therapeutics announced Q2 2025 results, highlighting strong core product expansion and capital restructuring for enhanced financial flexibility - Heron Therapeutics announced its financial results and recent corporate updates for the three and six months ended June 30, 2025[3](index=3&type=chunk) - The company completed a comprehensive capital restructuring, reducing total debt from **$175 million** to **$145 million** and extending debt maturities to at least 2030, enhancing financial flexibility to support growth[6](index=6&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Craig Collard stated the company enters Q3 with strong momentum, focusing on accelerating core product expansion and driving sustainable growth for stakeholders - CEO Craig Collard stated the company enters Q3 with **strong momentum**, clearly focused on accelerating core product expansion[4](index=4&type=chunk) - The company is committed to executing strategic priorities, driving sustainable growth, and creating long-term value for stakeholders[4](index=4&type=chunk) [Financial Performance and Outlook](index=1&type=section&id=Financial%20Performance%20and%20Outlook) [2025 Financial Guidance](index=1&type=section&id=2025%20Financial%20Guidance) Heron Therapeutics reaffirmed 2025 net revenue guidance and raised Adjusted EBITDA guidance, reflecting confidence in future performance Full-Year 2025 Net Revenue and Adjusted EBITDA Guidance (Millions of US Dollars) | Item | Original | Q1 Updated Guidance | Q2 Updated Guidance | | :--- | :--- | :--- | :--- | | Net Revenue | $153.0 to $163.0 | | | | Adjusted EBITDA | $0 - $8.0 | $4.0 - $12.0 | $9.0 - $13.0 | - Reaffirmed 2025 net revenue guidance of **$153 million to $163 million**[6](index=6&type=chunk) - Raised full-year 2025 Adjusted EBITDA guidance from **$4 million-$12 million** to **$9 million-$13 million**[6](index=6&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) The company reported strong Q2 2025 net revenue and record year-to-date Adjusted EBITDA, with significant acute care growth Q2 2025 and Year-to-Date Key Financial Data | Metric | Q2 2025 | YTD 2025 | | :--- | :--- | :--- | | Net Revenue | $37.2 million | $76.1 million | | Adjusted EBITDA | - | $7.9 million (record) | - Acute Care franchise revenue grew **55.5%** year-over-year in Q2 2025 and **70.5%** year-over-year for the first half[7](index=7&type=chunk) - ZYNRELEF unit demand increased **6.3%** quarter-over-quarter in Q2 2025[6](index=6&type=chunk)[7](index=7&type=chunk) - APONVIE unit demand increased **19%** quarter-over-quarter in Q2 2025[6](index=6&type=chunk)[7](index=7&type=chunk) - Cash, cash equivalents, and short-term investments totaled **$40.6 million** as of June 30, 2025[7](index=7&type=chunk) [Net Revenue Performance](index=3&type=section&id=Net%20Revenue%20Performance) This section details the company's Q2 and H1 2025 net revenue by product line, showing strong acute care growth and oncology product decline [Three Months Ended June 30](index=3&type=section&id=Three%20Months%20Ended%20June%2030) Total net revenue for Q2 2025 increased **3.3%** to **$37.2 million**, driven by **55.5%** acute care growth and a **9.0%** decline in oncology products Net Revenue Performance for the Three Months Ended June 30 (Thousands of US Dollars) | | 2025 | 2024 | Dollar Change | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Acute Care | $ 10,653 | $ 6,851 | $ 3,802 | 55.5% | | APONVIE | $ 2,464 | $ 1,020 | $ 1,444 | 141.6% | | ZYNRELEF | $ 8,189 | $ 5,831 | $ 2,358 | 40.4% | | Oncology | $ 26,547 | $ 29,173 | $ (2,626) | (9.0%) | | CINVANTI | $ 24,143 | $ 24,927 | $ (784) | (3.1%) | | SUSTOL | $ 2,404 | $ 4,246 | $ (1,842) | (43.4%) | | Total Net Revenue | $ 37,200 | $ 36,024 | $ 1,176 | 3.3% | [Six Months Ended June 30](index=3&type=section&id=Six%20Months%20Ended%20June%2030) Total net revenue for H1 2025 increased **7.7%** to **$76.1 million**, with **70.5%** acute care growth and a **5.6%** decline in oncology products Net Revenue Performance for the Six Months Ended June 30 (Thousands of US Dollars) | | 2025 | 2024 | Dollar Change | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Acute Care | $ 20,954 | $ 12,290 | $ 8,664 | 70.5% | | APONVIE | $ 4,724 | $ 1,446 | $ 3,278 | 226.7% | | ZYNRELEF | $ 16,230 | $ 10,844 | $ 5,386 | 49.7% | | Oncology | $ 55,149 | $ 58,404 | $ (3,255) | (5.6%) | | CINVANTI | $ 49,886 | $ 50,544 | $ (658) | (1.3%) | | SUSTOL | $ 5,263 | $ 7,860 | $ (2,597) | (33.0%) | | Total Net Revenue | $ 76,103 | $ 70,694 | $ 5,409 | 7.7% | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Heron Therapeutics reported a Q2 2025 net loss of **$2.381 million**, significantly narrowed, and achieved a net income of **$0.254 million** for H1, reversing the prior year's loss Consolidated Statements of Operations Key Data (Thousands of US Dollars, except per share amounts) | | Three Months Ended June 30, | | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net product sales | $ 37,200 | $ 36,024 | $ 76,103 | $ 70,694 | | Gross profit | $ 27,343 | $ 25,506 | $ 57,789 | $ 51,732 | | Total operating expenses | $ 28,980 | $ 31,951 | $ 56,272 | $ 62,975 | | Net (loss) income | $ (2,381) | $ (9,235) | $ 254 | $ (12,395) | | Basic net (loss) income per share | $ (0.02) | $ (0.06) | $ 0.00 | $ (0.08) | | Diluted net (loss) income per share | $ (0.02) | $ (0.06) | $ 0.00 | $ (0.08) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were **$232.09 million**, with increased current liabilities due to note reclassification and improved stockholders' deficit Consolidated Balance Sheets Key Data (Thousands of US Dollars) | | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $ 16,516 | $ 25,802 | | Short-term investments | $ 24,117 | $ 33,481 | | Total current assets | $ 210,923 | $ 209,014 | | Total assets | $ 232,090 | $ 233,147 | | Total current liabilities | $ 258,601 | $ 91,457 | | Total liabilities | $ 259,348 | $ 266,798 | | Total stockholders' deficit | $ (27,258) | $ (33,651) | [U.S. GAAP to Non-GAAP Reconciliation: Adjusted EBITDA](index=9&type=section&id=U.S.%20GAAP%20to%20Non-GAAP%20Reconciliation%3A%20Adjusted%20EBITDA) The company achieved positive Adjusted EBITDA in Q2 and H1 2025, significantly improving year-over-year and reflecting enhanced operational efficiency Adjusted EBITDA Reconciliation (Thousands of US Dollars) | | Three Months Ended June 30, | | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net (loss) income | $ (2,381) | $ (9,235) | $ 254 | $ (12,395) | | Other expense, net | 744 | 2,790 | 1,263 | 1,152 | | Depreciation | 611 | 641 | 1,162 | 1,330 | | Stock-based compensation | 2,797 | 4,570 | 5,308 | 7,945 | | Adjusted EBITDA | $ 1,771 | $ (1,234) | $ 7,987 | $ (1,968) | [Business and Product Updates](index=2&type=section&id=Business%20and%20Product%20Updates) [Acute Care Franchise Performance](index=2&type=section&id=Acute%20Care%20Franchise%20Performance) Heron's Acute Care franchise achieved strong year-over-year revenue growth in Q2 and H1 2025, driven by commercial execution and product adoption - Heron's Acute Care franchise revenue grew **55.5%** year-over-year in Q2 2025 and **70.5%** year-over-year for the first half[7](index=7&type=chunk) [ZYNRELEF Updates](index=2&type=section&id=ZYNRELEF%20Updates) ZYNRELEF unit demand grew **6.3%** in Q2 2025, with commercialization accelerated by sales team restructuring and a new permanent J-code from CMS - ZYNRELEF unit demand increased **6.3%** quarter-over-quarter in Q2 2025[6](index=6&type=chunk)[7](index=7&type=chunk) - Commercial plans include launching a restructured ZYNRELEF-dedicated sales team in Q3 2025 and enhancing distributor incentives for specific customers[7](index=7&type=chunk) - Transition to Vial Access Needle ("VAN") to be completed in Q3 2025 to optimize product preparation and handling[7](index=7&type=chunk) - CMS granted ZYNRELEF a permanent, product-specific J-code, effective October 1, 2025, to simplify reimbursement for hospitals and ambulatory surgical centers[7](index=7&type=chunk) - ZYNRELEF is the first and only extended-release dual-acting local anesthetic proven in Phase III studies to significantly reduce pain and increase the proportion of opioid-free patients for up to 72 hours post-surgery[12](index=12&type=chunk) [APONVIE Updates](index=2&type=section&id=APONVIE%20Updates) APONVIE unit demand grew **19%** in Q2 2025 due to hospital adoption, with a dedicated sales team launched to expand its PONV prevention market share - APONVIE unit demand increased **19%** quarter-over-quarter in Q2 2025[6](index=6&type=chunk)[7](index=7&type=chunk) - A dedicated sales team launched July 1 to focus on APONVIE promotion, leveraging recent access gains to cover approximately **4 million** annual surgical patients in the U.S. at moderate-to-high risk for postoperative nausea and vomiting[7](index=7&type=chunk) - APONVIE is a Substance P/Neurokinin-1 (NK1) Receptor Antagonist (RA) indicated for the prevention of postoperative nausea and vomiting (PONV) in adults[14](index=14&type=chunk) [CINVANTI Product Information](index=4&type=section&id=CINVANTI%20Product%20Information) CINVANTI is an intravenous NK1 receptor antagonist, used with other antiemetics for preventing acute and delayed nausea and vomiting from cancer chemotherapy - CINVANTI, in combination with other antiemetics, is indicated for the prevention of acute and delayed nausea and vomiting associated with highly emetogenic cancer chemotherapy (HEC) and moderately emetogenic cancer chemotherapy (MEC) in adults[16](index=16&type=chunk) - CINVANTI is an intravenous formulation of aprepitant, the first intravenous formulation to directly deliver aprepitant, the active ingredient in EMEND® capsules[16](index=16&type=chunk) [SUSTOL Product Information](index=5&type=section&id=SUSTOL%20Product%20Information) SUSTOL is an extended-release injectable 5-HT3 receptor antagonist, using Biochronomer® technology, for preventing acute and delayed nausea and vomiting from chemotherapy - SUSTOL, in combination with other antiemetics, is indicated for the prevention of acute and delayed nausea and vomiting associated with moderately emetogenic chemotherapy (MEC) or anthracycline and cyclophosphamide (AC) combination chemotherapy regimens in adults[18](index=18&type=chunk) - SUSTOL is an extended-release injectable 5-HT3 receptor antagonist, utilizing Heron's Biochronomer® drug delivery technology, maintaining therapeutic levels of granisetron for at least 5 days[18](index=18&type=chunk) [Corporate Information and Disclosures](index=4&type=section&id=Corporate%20Information%20and%20Disclosures) [Conference Call and Webcast](index=4&type=section&id=Conference%20Call%20and%20Webcast) Heron Therapeutics will host a conference call and webcast on August 8, 2025, at 8:30 AM ET to discuss company results and provide details - Heron will host a conference call and webcast on Friday, August 8, 2025, at **8:30 AM ET**[11](index=11&type=chunk) - Conference call dial-in details are available via a registration link, and the webcast can be accessed on the Investor Relations section of Heron's website[11](index=11&type=chunk) [About Heron Therapeutics, Inc.](index=5&type=section&id=About%20Heron%20Therapeutics%2C%20Inc.) Heron Therapeutics, Inc. is a commercial-stage biotechnology company focused on developing therapeutic innovations to improve patient lives in acute care and oncology - Heron Therapeutics, Inc. is a commercial-stage biotechnology company focused on improving patient lives through the development and commercialization of therapeutic innovations[20](index=20&type=chunk) - The company leverages advanced science, proprietary technologies, and innovative approaches to deliver a portfolio of products for acute care and oncology patients[20](index=20&type=chunk) [Non-GAAP Financial Measures Explanation](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The company uses non-GAAP financial measures like Adjusted EBITDA to supplement GAAP results, providing insights into operational activities, with detailed definitions and limitations - The company uses non-GAAP financial measures, such as Adjusted EBITDA, to supplement GAAP results, providing insights into normal operating activities[21](index=21&type=chunk)[22](index=22&type=chunk) - Adjusted EBITDA is a non-GAAP financial measure representing GAAP net income or loss, adjusted for interest expense, interest income, income tax benefit or provision, depreciation, amortization, stock-based compensation expense, and other adjustments not representative of ongoing operations[23](index=23&type=chunk) - Adjusted EBITDA has limitations, such as excluding depreciation and amortization, stock-based compensation expense, working capital requirements, income taxes, and cash requirements for capital expenditures or contractual commitments[24](index=24&type=chunk)[25](index=25&type=chunk) - Adjusted Operating Expenses is a non-GAAP financial measure representing GAAP operating expenses, adjusted for stock-based compensation expense, depreciation and amortization, and other adjustments not representative of ongoing operations[26](index=26&type=chunk) [Forward-looking Statements](index=6&type=section&id=Forward-looking%20Statements) This press release contains forward-looking statements based on management's expectations, subject to risks and uncertainties that could cause actual results to differ materially - This press release contains “forward-looking statements” based on management’s expectations and assumptions, subject to risks and uncertainties that could cause actual results to differ materially[27](index=27&type=chunk) - Examples of forward-looking statements include potential market opportunities for ZYNRELEF, APONVIE, CINVANTI, and SUSTOL, financial guidance, potential market opportunities for ZYNRELEF label expansion, and outcomes of the company’s patent litigation[27](index=27&type=chunk) - Important risk factors are detailed in the company’s latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, and other reports filed with the U.S. Securities and Exchange Commission[27](index=27&type=chunk) [Investor Relations and Media Contact](index=10&type=section&id=Investor%20Relations%20and%20Media%20Contact) This section provides detailed contact information for Heron Therapeutics' Investor Relations and Media Contact for further communication - Investor Relations and Media Contact: Ira Duarte, Executive Vice President, Chief Financial Officer[34](index=34&type=chunk) - Contact: iduarte@herontx.com, 858-251-4400[34](index=34&type=chunk)

Core Insights - Heron Therapeutics reported strong financial results for Q2 2025, with net revenue of $37.2 million and year-to-date revenue of $76.1 million, reaffirming its 2025 net revenue guidance of $153 million to $163 million [7][3] - The company achieved record year-to-date adjusted EBITDA of $7.9 million, raising its full-year adjusted EBITDA guidance from $4.0 million - $12.0 million to $9.0 million - $13.0 million [7][3] - The company is focused on expanding its core products, particularly ZYNRELEF and APONVIE, with significant unit demand growth reported [8][7] Financial Performance - Q2 2025 net revenue increased by 3.3% compared to Q2 2024, with total net revenue reaching $37.2 million [9] - Year-to-date net revenue for the first half of 2025 was $76.1 million, reflecting a 7.7% increase from $70.7 million in the same period of 2024 [10] - The Acute Care franchise saw a year-over-year revenue growth of 55.5% in Q2 2025 and 70.5% for the first half of 2025 [8] Product Updates - ZYNRELEF unit demand grew by 6.3% in Q2 2025 compared to Q1 2025, with plans for expanded commercial initiatives in Q3 2025 [8] - APONVIE unit demand increased by 19% in Q2 2025 compared to Q1 2025, supported by increased adoption in hospital systems [8] - The Centers for Medicare and Medicaid Services granted a permanent J-code for ZYNRELEF, effective October 1, 2025, which will streamline reimbursement processes [8] Debt and Financial Flexibility - The company completed a comprehensive capital restructuring, reducing total debt from $175 million to $145 million and extending debt maturities to at least 2030 [7] - As of June 30, 2025, cash, cash equivalents, and short-term investments totaled $40.6 million [8] Management Commentary - The CEO emphasized the company's commitment to executing strategic priorities and driving sustainable growth, reflecting the dedication of the team and the growing demand for innovative solutions [2]

Core Viewpoint - Heron Therapeutics has completed a comprehensive capital restructuring aimed at enhancing financial flexibility, reducing total debt, and supporting long-term growth [1][2] Financial Restructuring Details - The refinancing transaction includes a new senior credit facility with Hercules Capital providing $110 million in committed capital and an additional $40 million available upon achieving certain milestones [6] - An exchange agreement was made to retire approximately $125 million in cash and convert $25 million of existing senior convertible notes into common stock [6] - The company issued $35 million of new 5% senior convertible notes due in 2031 and conducted a private placement for $27.7 million in gross proceeds through common and preferred equity [6] Management Commentary - The CEO of Heron emphasized that the refinancing strengthens the balance sheet, eliminates near-term debt maturities, and supports commercial execution and pipeline priorities [2] Upcoming Events - Heron will host a conference call and live webcast on August 8, 2025, to discuss the restructuring and its implications [4]

Core Viewpoint - Heron Therapeutics, Inc. will host a conference call on August 11, 2025, to report its second quarter 2025 financial results and discuss recent business highlights [1]. Group 1: Conference Call Details - The conference call is scheduled for August 11, 2025, at 4:30 p.m. ET [1]. - Participants can access the call via a registration link for dial-in details and are encouraged to join fifteen minutes early [2]. - The call will also be available as a webcast on Heron's website, with an archive accessible for 60 days post-call [2]. Group 2: Company Overview - Heron Therapeutics is a commercial-stage biotechnology company focused on developing therapeutic innovations to improve patient care [3]. - The company utilizes advanced science, patented technologies, and an innovative approach to drug discovery and development [3]. - Heron aims to advance the standard-of-care for acute care and oncology patients through its portfolio of products [3].

Heron Therapeutics, Inc. (NASDAQ: HRTX ) has four approved therapeutics, bringing in net product sales of $39M in Q1'25 between them, but the company believes one of the four drugs (Zynrelef) could be a $100M+ drug annually. I rated HRTX a buy in AprilScientist and trader of biotech stock. Focus on trading around events such as trial results and NDA/BLA approvals. Also covering companies in industries regulated by the FDA. Articles present my opinion on stocks, but don't constitute investment advice.Analyst ...

Core Insights - Heron Therapeutics reported revenue of $38.9 million for the quarter ended March 2025, reflecting a 12.2% increase year-over-year and surpassing the Zacks Consensus Estimate of $37.08 million by 4.93% [1] - The company achieved an EPS of $0.01, a significant improvement from -$0.02 in the same quarter last year, resulting in an EPS surprise of 200% compared to the consensus estimate of -$0.01 [1] Financial Performance Metrics - Net Product Sales for Oncology drug SUSTOL were $2.86 million, falling short of the $2.98 million estimate, representing a year-over-year decline of 20.6% [4] - Net Product Sales for Acute Care drug APONVIE reached $2.26 million, exceeding the $1.98 million estimate, marking a substantial increase of 352% year-over-year [4] - Net Product Sales for Acute Care drug ZYNRELEF were reported at $8.04 million, below the $9.03 million estimate, but still showing a 60.8% increase compared to the previous year [4] - Net Product Sales for Oncology drug CINVANTI amounted to $25.74 million, surpassing the $23.10 million estimate, with a slight year-over-year increase of 0.6% [4] Stock Performance - Shares of Heron Therapeutics have returned +8.7% over the past month, while the Zacks S&P 500 composite has changed by +11.5% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Company Performance - Heron Therapeutics reported quarterly earnings of $0.01 per share, surpassing the Zacks Consensus Estimate of a loss of $0.01 per share, and improving from a loss of $0.02 per share a year ago, representing an earnings surprise of 200% [1] - The company posted revenues of $38.9 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 4.93%, compared to revenues of $34.67 million in the same quarter last year [2] - Over the last four quarters, Heron Therapeutics has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Heron Therapeutics shares have increased by approximately 39.2% since the beginning of the year, while the S&P 500 has declined by 3.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $37.68 million, and for the current fiscal year, it is $0.01 on revenues of $157.15 million [7] Industry Outlook - The Medical - Drugs industry, to which Heron Therapeutics belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can significantly impact stock performance [5][8]

Financial Data and Key Metrics Changes - The company generated total net revenues of approximately $39 million for Q1 2025, achieving a record quarterly adjusted EBITDA of $6.2 million and reporting net income of $2.6 million, compared to a net loss of $3.2 million in the same period in 2024 [8][17] - Product gross profit for the three months ended March 31, 2025, was $30.4 million or 78%, an increase from 76% for the same period in 2024, attributed to lower cost per unit due to production efficiencies [16] - Cash and short-term investments as of March 31, 2025, were $50.7 million, with adjusted EBITDA guidance revised to a range of $4 million to $12 million [17] Business Line Data and Key Metrics Changes - The oncology franchise, including CINVONTI and SUSTAL, generated combined net revenues of $28.6 million for the quarter, maintaining market share in a competitive environment [9] - Aponvi and Xenalev experienced significant growth in Q1 2025, with increases of over 43% and 26% respectively compared to the same period last year [11][12] - The company is focusing on product growth and execution, with a goal to optimize commercial performance and selectively expand the team to support high return growth opportunities [6][14] Market Data and Key Metrics Changes - Zeneralev's formulary status now covers approximately 19% of all orthopedic procedures, with expectations for deeper adoption in the market [6] - The company is onboarding new accounts, which are expected to drive sales momentum in the second half of the year [22][46] Company Strategy and Development Direction - The company aims to focus on disciplined execution, optimizing commercial performance, and expanding the team selectively to support growth opportunities [7][14] - The management is actively exploring strategies to drive continued growth in the oncology supportive care market [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consensus numbers and anticipates a significant inflection in sales as new accounts are onboarded and partnerships are optimized [23][47] - The company is optimistic about the growth potential of Aponvi, projecting it to be a multi-hundred million dollar drug due to its unique safety profile and mechanism of action [42] Other Important Information - A settlement agreement with Mylan Pharmaceuticals regarding Cymbonte and Aponvi products was reached, avoiding costly litigation fees [8] - The company is focused on integrating the CrossLink partnership to enhance sales efforts and improve product adoption [41] Q&A Session Summary Question: Can you provide qualitative comments on the Cimanti litigation settlements and implications for near-term financials? - Management indicated that the settlement allows for continued growth of Cymbonte and Aponvi [20] Question: What should be expected in terms of sales momentum in the back half of the year? - Management noted that unit demand was up 2% while the market was down 5.3%, indicating positive trends and onboarding of new accounts [21][22] Question: Can you discuss overall Q1 trends and any changes to guidance? - Management confirmed that trends were consistent with past years, and they are optimistic about future growth due to new account onboarding and partnerships [28][30] Question: How do you expect gross profit margin to progress through the year? - Management expects gross margin to remain in the mid-seventies range, despite some fluctuations due to production sources [36][37] Question: What is the near-term to long-term potential for Aponvi? - Management believes Aponvi has significant growth potential, aiming to be the first choice for third-line agents in PONV therapy [42] Question: When might Zeneralev start achieving sequential revenue growth? - Management anticipates a significant inflection in Zeneralev's sales as new accounts are onboarded around mid-year [47]

Q1 2025 Earnings Call Heron Therapeutics May 6, 2025 Forward-looking Statements and Non-GAAP Disclosures This presentation contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. We caution investors that forward-looking statements are based on management's expectations and assumptions as of the date hereof and are subject to certain risks and uncertainties that could cause actual results to differ materially. Examples of forward-looking statements include, ...

Financial Data and Key Metrics Changes - The company generated total net revenues of approximately $39 million for Q1 2025, achieving a record quarterly adjusted EBITDA of $6.2 million and reporting net income of $2.6 million, a significant improvement from a net loss of $3.2 million in the same period in 2024 [7][17] - Product gross profit for Q1 2025 was $30.4 million, representing a gross margin of 78%, an increase from 76% in Q1 2024, attributed to lower cost per unit due to production efficiencies [15][17] - Cash and short-term investments as of March 31, 2025, were $50.7 million, with adjusted EBITDA guidance revised to a range of $4 million to $12 million [17] Business Line Data and Key Metrics Changes - The oncology franchise, including CINVONTI and SUSTAL, generated combined net revenues of $28.6 million for the quarter, maintaining market share in a competitive environment [9] - Aponvi and Xenalev experienced significant growth in Q1 2025, with increases of over 43% and 26% respectively compared to the same period last year [11][12] - The company is focusing on product growth and execution, particularly with Aponvi and Zeneralev, which are expected to show stronger growth trajectories as new accounts are onboarded [12][14] Market Data and Key Metrics Changes - Zeneralev's formulary status now covers approximately 19% of all orthopedic procedures, indicating a growing market presence [6] - The company is seeing positive trends in average daily units and the number of ordering accounts for both Aponvi and Xenalev, with expectations for continued growth throughout 2025 [12][13] Company Strategy and Development Direction - The company is focused on disciplined execution, optimizing commercial performance, and selectively expanding the team to support high-return growth opportunities [6][14] - Key catalysts for growth include the expanded label for Zeneralev, the VAN launch, the approval of the No Pain Act, and the CrossLink partnership [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consensus numbers for the year, with expectations for a significant inflection in sales momentum as new accounts are onboarded and partnerships are fully integrated [22][23] - The company anticipates a positive outlook for the remainder of the year, driven by strategic initiatives and improved operational efficiencies [30] Other Important Information - A settlement agreement with Mylan Pharmaceuticals regarding Cymbonte and Aponvi products was reached, avoiding costly litigation fees and removing uncertainty around the outcome [7] - The company is prioritizing hiring a commercial leader to enhance its growth strategy, with Mark Hensley joining the team [7] Q&A Session Summary Question: Comments on the Cymanti litigation settlements and implications for near-term financials - Management indicated that the settlement allows for continued growth of Cymbonte and Aponvi without the burden of litigation [20] Question: Expectations for sales momentum in the second half of the year - Management noted a 2% increase in unit demand despite a market decline, with several accounts in the onboarding process expected to drive growth [21][22] Question: Overall Q1 trends and seasonality - Management confirmed that Q1 trends were consistent with past years, with a slight fall-off expected but overall positive performance [26][27] Question: Guidance changes and drivers for EBITDA increase - Management highlighted strong Q1 performance due to efficiencies and the settlement announcement, leading to revised positive guidance [30] Question: Future gross profit margin expectations - Management expects gross margins to remain in the mid-seventies range, with some fluctuations due to production scale [33][35] Question: Long-term potential for Aponvi - Management believes Aponvi has significant growth potential, targeting a multi-hundred million dollar market as it becomes a preferred third-line agent [40] Question: Timing for Zeneralev revenue growth inflection - Management anticipates a significant inflection in Zeneralev sales as new accounts are onboarded in mid to late 2025 [44][45]