Heron Therapeutics(US:HRTX)2024-03-12 20:15Financial Performance - For the year ended December 31, 2023, net product sales were $127.0 million, an increase of 17.9% compared to $107.7 million for the same period in 2022[315]. - Net product sales of ZYNRELEF for the year ended December 31, 2023, were $17.7 million, up from $10.2 million in 2022, reflecting an increase in units sold[316]. - Net product sales of CINVANTI for the year ended December 31, 2023, were $94.9 million, compared to $87.3 million in 2022, primarily due to an increase in units sold[317]. - APONVIE generated net product sales of $1.4 million in 2023, having become commercially available in March 2023[316]. - Net product sales of SUSTOL for the year ended December 31, 2023, were $13.0 million, compared to $10.2 million in 2022, attributed to an increase in units sold[317]. Cost and Expenses - Cost of product sales for the year ended December 31, 2023, was $65.1 million, an increase from $54.9 million in 2022, driven by higher inventory write-offs[318]. - The cost of product sales included charges of $20.3 million in 2023 and $8.9 million in 2022, primarily from the write-off of ZYNRELEF inventory[318]. - The increase in cost of product sales was partially offset by a decrease in cost per unit for CINVANTI and ZYNRELEF due to validated large-scale manufacturing[318]. - For the year ended December 31, 2023, total research and development expense was $55.9 million, a decrease of 48% from $107.5 million in 2022, primarily due to reduced costs related to ZYNRELEF and CINVANTI[320]. - General and administrative expense increased to $49.0 million in 2023 from $37.4 million in 2022, mainly due to severance and stock-based compensation expenses related to executive departures[321]. - Sales and marketing expense decreased to $67.6 million in 2023, down 18% from $82.5 million in 2022, attributed to improved operational efficiencies in the commercialization of ZYNRELEF[322]. Net Loss and Cash Flow - The net loss for the year ended December 31, 2023, was $110.6 million, or $0.80 per share, compared to a net loss of $182.0 million, or $1.67 per share, for the same period in 2022[326]. - Net cash used in operating activities decreased to $58.8 million in 2023 from $146.9 million in 2022, primarily due to lower operating expenses and changes in working capital[326]. - As of December 31, 2023, the company had cash, cash equivalents, and short-term investments totaling $80.4 million, sufficient to meet anticipated cash requirements for at least one year[325]. - Net cash provided by investing activities was $18.0 million in 2023, compared to net cash used of $3.3 million in 2022, primarily due to net maturities of short-term investments[327]. Obligations and Agreements - The company had total purchase obligations of $60.2 million as of December 31, 2023, with $39.0 million due in one year and $21.2 million due within two to three years[331]. - As of December 31, 2023, $150.0 million of convertible notes were outstanding, maturing on May 26, 2026[332]. - The company entered into a sublease agreement for 5,840 square feet of office space in Cary, North Carolina, with a lease term expiring on April 30, 2025[330]. Future Outlook - The company expects total operating expenses to decrease year-over-year in 2024 due to cost reduction efforts[298]. - The company continues to monitor factors impacting its business and does not believe they are material as of the filing date of the report[298].