Heron Therapeutics' Q4 2024 Earnings Call: Contradictions Unveiled on ZYNRELEF Sales, OpEx Growth, and NOPAIN Act Impact

These are the key contradictions discussed in Heron Therapeutics' latest 2024Q4 earnings call, specifically including: ZYNRELEF sales and CrossLink partnership impact, OpEx growth expectations, ZYNRELEF sales momentum, and NOPAIN Act impact:



Financial Performance and Profitability:
- Heron Therapeutics reported a net income of $3.6 million for Q4 2024, marking the company's return to profitability.
- Full-year 2024 saw net revenues reach $144.2 million, reflecting a 14% year-over-year increase, and adjusted EBITDA of $8.6 million.
- The financial turnaround was driven by successful repositioning, cost reductions, and strategic initiatives.

Product Growth for ZYNRELEF and APONVIE:
- ZYNRELEF achieved record net revenues of $8.5 million in Q4 2024, a 33% increase from Q3, and APONVIE saw a growth of over 310%.
- Expansion of product labeling, the CrossLink partnership, and inclusion in the NOPAIN Act contributed to the growth.
- The launch of the Vial Access Needle (VAN) improved customer experience and reduced training time.

Oncology Franchise and Market Dynamics:
- CINVANTI net revenues rebounded to $26.9 million in Q4, up from $22.7 million in Q3.
- The growth was supported by the company maintaining a 27% market share with a 7% to 8% market growth, despite increased competition.
- The company anticipated lower average selling prices (ASP) due to increased competition but still expects unit sales growth.

Operational Efficiency and Cost Management:
- Heron Therapeutics improved gross margin to approximately 73% and reduced operating expenses by over $80 million since 2022.
- The improvement was due to personnel reductions and cost efficiencies, offset by increased legal expenses related to patent litigations.
- The company ended 2024 with a cash balance of over $59 million, reflecting improved financial management.