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Heron (HRTX) Q2 Acute Care Jumps 56%
The Motley Fool· 2025-08-08 12:02
Core Insights - Heron Therapeutics reported a 55.5% increase in Acute Care segment revenue, but faced a GAAP revenue shortfall compared to analyst expectations and continued declines in the Oncology segment [1][5][7] - Net revenue (GAAP) for Q2 2025 was $37.2 million, slightly below the consensus estimate of $38.075 million, with a year-over-year growth of 3.3% [1][2] - The company achieved a positive adjusted EBITDA of $1.8 million, indicating improved operational leverage [2][8] Financial Performance - GAAP loss per share was $(0.02), missing the expectation of $(0.01), while operating losses narrowed [1][2] - Acute Care revenue reached $10.7 million, up from $6.9 million in Q2 2024, reflecting a 55.5% year-over-year increase [2][5] - Oncology segment revenue declined by 9.0%, with SUSTOL experiencing a significant drop of 43.4% [2][7] Business Overview - Heron Therapeutics focuses on developing and commercializing therapeutics for acute care and oncology, including pain management and anti-nausea drugs [3] - The company is emphasizing growth in the Acute Care business, particularly through products like ZYNRELEF and APONVIE [4][10] Product Performance - ZYNRELEF saw a 40.4% year-over-year growth in GAAP net revenue, with unit demand increasing by 6.3% compared to Q1 2025 [5] - APONVIE's revenue grew by 141.6% year-over-year, with a 19% sequential increase in unit demand [6] - The Oncology segment's decline was attributed to ongoing weakness in SUSTOL and CINVANTI, with no new product drivers announced [7] Operational Developments - Gross margin was reported at 73.5%, with operating expenses decreasing by $3.0 million year-over-year to $29.0 million [8] - Total debt was reduced to $145 million, with maturities extended to at least 2030, providing greater flexibility for growth [8] - Cash and short-term investments decreased to $40.6 million, with a notable inventory increase of almost $20 million over six months [9] Future Outlook - The company reaffirmed its full-year 2025 net revenue target of $153.0 million to $163.0 million, requiring at least $77 million in the second half of 2025 [11] - Adjusted EBITDA guidance was raised to $9.0 million to $13.0 million for full-year 2025, reflecting improved operating performance [11] - Future growth in Acute Care revenue is expected to be driven by commercial team expansion and the rollout of permanent reimbursement codes for ZYNRELEF [11]
Heron Therapeutics Announces Q2 2025 Financial Results and Highlights Commercial Progress
Prnewswire· 2025-08-08 11:45
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]
Compared to Estimates, Heron Therapeutics (HRTX) Q1 Earnings: A Look at Key Metrics
ZACKS· 2025-05-06 14:36
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]
Heron Therapeutics Announces First Quarter 2025 Financial Results and Highlights Recent Corporate Updates
Prnewswire· 2025-05-06 11:45
Core Insights - Heron Therapeutics reported strong financial results for Q1 2025, achieving record adjusted EBITDA and significant revenue growth driven by its acute care products, particularly ZYNRELEF [2][6][7]. Financial Performance - The company generated net revenue of $38.9 million in Q1 2025, a 12.2% increase compared to Q1 2024 [6][7]. - Adjusted EBITDA for Q1 2025 was $6.2 million, a significant improvement from a loss of $734,000 in Q1 2024 [6][27]. - The acute care segment saw a revenue increase of 89.4%, with ZYNRELEF contributing $8.0 million, up 60.4% from the previous year [5][7]. Business Highlights - The company reached a settlement with Mylan Pharmaceuticals regarding patent litigations for CINVANTI and APONVIE, allowing Mylan to market generics starting June 1, 2032 [6][7]. - The Non-Opioid Policy for Pain Relief, effective April 1, 2025, provides separate payment for non-opioids like ZYNRELEF, enhancing market opportunities [7]. - The launch of the Vial Access Needle (VAN) for ZYNRELEF is progressing well, improving operational efficiency in surgical settings [7]. Financial Guidance - For the full year 2025, the company updated its guidance for net revenue to a range of $153 million to $163 million and adjusted EBITDA to $4 million to $12 million [3][6]. Cash Position - As of March 31, 2025, the company had cash, cash equivalents, and short-term investments totaling $50.7 million [7]. Product Information - ZYNRELEF is the first extended-release dual-acting local anesthetic approved for postoperative pain management, demonstrating significant efficacy in reducing pain and opioid use [9]. - APONVIE is indicated for the prevention of postoperative nausea and vomiting, showing bioequivalence to oral aprepitant [11]. - CINVANTI is used for preventing chemotherapy-induced nausea and vomiting, with a unique IV formulation [13]. - SUSTOL is indicated for the prevention of nausea and vomiting associated with chemotherapy, utilizing a novel drug delivery technology [15].