Heron Therapeutics(US:HRTX)2025-11-04 14:30Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 were $38.2 million, with year-to-date revenues of $114.3 million, resulting in adjusted EBITDA of $1.5 million for the quarter and $9.5 million year to date [5][21] - Gross margin was 68.8%, down from 71.2% in Q3 2024, primarily due to a one-time write-off of Sustol polymer inventory [6][18] - Net loss for Q3 2025 was $17.5 million, compared to a net loss of $4.8 million in Q3 2024, largely due to an $11.3 million loss on debt extinguishment [20] Business Line Data and Key Metrics Changes - Acute care portfolio net sales were $12.3 million in Q3 2025, up from $10.7 million in Q2 2025, with ZYNRELEF net sales growing 49% year-over-year to $9.3 million [12][16] - APONVIE net sales increased 173% year-over-year to $3 million, reflecting strong growth before the dedicated sales team was fully active [12][14] - Oncology franchise net sales were $25.9 million in Q3 2025, with CINVANTI net sales approximately $24 million, up about 6% year-over-year [15][16] Market Data and Key Metrics Changes - ZYNRELEF's average daily units increased from 882 in Q3 2024 to 1,127 in Q3 2025, with ordering accounts rising from 705 to 833 [13] - APONVIE's average daily units grew from 418 to 998, with ordering accounts increasing from 299 to 405 [14] Company Strategy and Development Direction - The company has implemented initiatives such as the CrossLink Ignite program and the launch of the 200 mg Vial Access Needle to enhance distributor engagement and product adoption [7][10] - The introduction of a permanent product-specific J-code for ZYNRELEF is expected to streamline reimbursement and improve access [9][11] - The company plans to wind down the commercialization of Sustol over the next 12 months while evaluating potential product updates for a possible reintroduction in late 2027 [16][49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for ZYNRELEF and APONVIE, indicating a positive trajectory for the business moving forward [10][16] - The company reaffirmed its guidance for net revenue of $153 million to $163 million and adjusted EBITDA of $9 million to $30 million for the year [21] Other Important Information - Cash and short-term investments as of September 30, 2025, were $55.5 million, bolstered by $13.1 million from recent debt and equity transactions [21] - The company is seeing momentum from the No Pain Act, with approximately 75% of ZYNRELEF indicated procedures having some form of coverage [47] Q&A Session Summary Question: October sales increase for ZYNRELEF - Management confirmed an approximate 17-18% month-over-month increase in early October sales for ZYNRELEF [24] Question: Adjusted gross profit margin - Management confirmed that the adjusted gross profit margin, excluding a one-time stocking charge, would be around 74.5% [25][26] Question: Future sales team expansion - Management indicated that they are pleased with the structural changes made and are considering adding to the sales teams based on success in specific regions [35][38] Question: Inventory stocking benefit for ZYNRELEF - Management stated that there was minimal inventory stocking benefit from the launch of the 200 mg Vial Access Needle [39] Question: Long-term outlook for Sustol and Synvonti - Management acknowledged competitive pressures on Sustol and indicated plans to wind down its commercialization while exploring potential updates for a future reintroduction [49] Question: Impact of the No Pain Act - Management noted that momentum is building for the No Pain Act, with commercial payers beginning to provide separate reimbursement [46][47]