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- **Acute Care Surge**: ZYNRELEF +49% YoY, APONVIE +173% YoY, Q3 acute care revenue $12.3M
- **J-code Win**: ZYNRELEF billing clarity drives 17% Oct unit growth
- **CINVANTI Resilience**: Stable at $24M despite competitive pressure
- **2027 PFS Launch**: Simplified delivery system targets late 2027 approval
- **Cash Position**: $55.5M post-financing, debt extinguishment costs $11.3M

**【CEO Opening Remarks】**
- **Q3 2025 Financial Highlights**: Total revenue $38.2M (YoY +15%), adjusted EBITDA $1.5M, gross margin 68.8% (down 2.4pts YoY due to one-time inventory write-off). 
- **Product Momentum**: ZYNRELEF net sales $9.3M (YoY +49%), APONVIE $3M (YoY +173%). CINVANTI stable at $24M, SUSTOL declining to $1.9M (YoY -32%).
- **Strategic Wins**: J-code for ZYNRELEF effective Oct 1, prefilled syringe (PFS) approval targeted for late 2027.
- **Operational Focus**: Post-financing, management prioritizing commercial execution and product growth.

**【COO Operational Update】**
- **ZYNRELEF Growth Drivers**: 
  - 200mg vial access needle (VAN) adoption
  - CrossLink Ignite distributor incentive program
  - Dedicated IBM team
  - Q3 units: 1,127/day (vs 882/day YoY), 17% Oct YoY surge
- **APONVIE Expansion**: 
  - 6-person dedicated team launched July 2025
  - Q3 units: 998/day (vs 418/day YoY)
  - 2025 PONV guidelines expected Q4
- **CINVANTI Synergy**: APONVIE pull-through driving CINVANTI orders in shared accounts

**【CFO Financial Review】**
- **Revenue**: Acute care $12.3M (QoQ +15%), oncology $25.9M (QoQ +1%)
- **Gross Profit**: $26.3M (68.8% margin), adjusted for $1.4M inventory write-off
- **Expenses**: 
  - SG&A $26.9M (YoY +15%)
  - R&D $3.5M (YoY -22%)
  - Net loss $17.5M (YoY +263% due to $11.3M debt extinguishment)
- **Cash Position**: $55.5M post-Q3 financing

**【Q&A Highlights】**
1. **ZYNRELEF October Momentum**: 17-18% MoM unit growth in first 2 weeks
2. **Gross Margin Adjustment**: Excluding write-off, adjusted margin ~74.5%
3. **NOPAIN Act Impact**: 75% of ZYNRELEF procedures now reimbursable
4. **2026 Commercial Investment**: Contingent on Q4 performance, potential team expansion
5. **SUSTOL Winddown**: Plan to halt commercialization by Q4 2026

Heron Therapeutics, Inc. (HRTX) Q3 2025 Earnings Call Transcript

- **Financial Strength**: $150M credit facility and $35M convertible notes enhance liquidity, reducing net loss to $2.4M Q2.
- **Revenue Growth**: Q2 net revenue $37.2M, H1 $76.1M; ZYNRELEF demand up 6.3%, APONVIE +19%.
- **J-code Impact**: Effective Oct 1, simplifying reimbursement and supporting ZYNRELEF adoption.
- **Oncology Resilience**: $26.5M Q2, maintaining market share in competitive markets.
- **Guidance Update**: 2025 EBITDA revised to $9-13M, reflecting cost management and growth initiatives.

**【CEO Summary Section】**
- **Successful Financing**: Secured $150M credit facility, $35M convertible notes, and $28M equity, reducing debt and enhancing liquidity.
- **Q2 Financials**: Net revenue $37.2M, H1 $76.1M; adjusted EBITDA $7.9M (H1). Oncology franchise contributed $26.5M Q2.
- **Product Momentum**: ZYNRELEF demand units +6.3% QoQ, APONVIE +19% demand growth; J-code for ZYNRELEF effective Oct 1.
- **Strategic Initiatives**: Restructured sales teams, enhanced CrossLink incentives, and clinical educator support for ZYNRELEF.

**【COO Product Performance】**
- **ZYNRELEF**: Q2 net $10.7M (+55.5% YOY), 700+ accounts. Inventory drawdown reduced sales by $400K, expected normalization in Q3.
- **APONVIE**: Q2 demand +19%, revenue +9% despite 340B discounts; new 6-rep team launched.
- **Oncology**: $26.5M Q2, maintaining market share in competitive landscape.

**【CFO Financial Commentary】**
- **Gross Profit**: $27.3M (73.5%), up from 70.8% YOY, driven by volume growth.
- **Cost Management**: SG&A down $1.8M (Q2) and $3.5M (H1), R&D down $1.2M (Q2) and $2M (H1).
- **Net Loss**: $2.4M Q2, H1 net income $300K; cash $40.6M post-refinancing.
- **Guidance**: 2025 revenue $153-163M, EBITDA $9-13M.

**【Q&A Highlights】**
- **ZYNRELEF Transition**: Q2 impact $400K, Q3 normalization expected; J-code to streamline reimbursement.
- **Sales Force Restructure**: Separate ZYNRELEF and APONVIE teams; CrossLink incentives for targeted accounts.
- **NOPAIN Act**: Early signs of shifted payer conversations, potential long-term growth.
- **Refinancing Details**: Credit facility rate ~10%, net cash $11-12M post-closing.
- **Share Impact**: Pro forma shares ~183M common, 208M including convertibles.

Heron Therapeutics, Inc. (HRTX) Q2 2025 Earnings Call Transcript

- **Q1 2025 Financial Highlights**: $39 million revenue, $6.2 million adjusted EBITDA, and $2.6 million net income reflect strong operational execution.
- **Product Growth Drivers**: ZYNRELEF (+60% YoY) and APONVIE (+432% YoY) outpace market trends, supported by formulary wins and Crosslink partnerships.
- **Strategic Moves**: Settlement with Mylan, Mark Hensley leadership addition, and revised EBITDA guidance ($4M–$12M) signal confidence in 2025 growth.
- **Key Risks & Opportunities**: Mid-70s gross margin stability, oncology franchise resilience, and APONVIE's multi-hundred-million-dollar potential.


**【CEO Summary Section】**
- Total net revenue for Q1 2025: $39 million, with record quarterly adjusted EBITDA of $6.2 million and net income of $2.6 million.
- Oncology franchise (CINVANTI and SUSTOL) combined net revenue: $28.6 million, maintaining market share in a competitive environment.
- ZYNRELEF and APONVIE growth: Q1 2025 sales up 60% and 432% YoY, respectively, driven by expanded formulary access and partnerships.
- Key initiatives: Crosslink partnership integration, new commercial leader Mark Hensley hire, and settlement with Mylan Pharmaceuticals to avoid litigation costs.
- 2025 focus: disciplined execution, commercial performance optimization, and selective team expansion for high-return growth.

**【CFO Financial Commentary】**
- Product gross profit margin: 78% (Q1 2025), up from 76% YoY, due to production efficiencies.
- G&A expenses: $25 million (down 5.3% YoY) due to cost restructuring, offset by increased sales and marketing spend.
- R&D expenses: $2.3 million (down 49.8% YoY) due to reduced personnel costs and development activities.
- Cash and short-term investments: $50.7 million as of March 31, 2025.
- Adjusted EBITDA guidance revised to $4 million–$12 million for 2025, up from prior range of $0–$8 million.

**【Q&A Key Takeaways】**
- **Litigation Settlement**: Positive impact on near-term financials through reduced legal expenses and improved cash flow visibility.
- **ZYNRELEF Momentum**: 5 new accounts in onboarding phase, with expected inflection in Q3/Q4 2025 as Crosslink partnership drives pull-through.
- **APONVIE Growth**: Potential for multi-hundred-million-dollar peak sales, leveraging unique safety profile and third-line agent positioning.
- **Gross Margin Trends**: Mid-70s range expected for 2025, with minor fluctuations based on manufacturer scale economics.


Heron Therapeutics (HRTX)-6 May 25-2025 Q1 Earnings call transcript

- **Record 2024 performance**: $144.2M net revenue (+14% YoY), first-year profitability, and $8.5M ZYNRELEF Q4 sales (33% QoQ growth).
- **Strategic wins**: VAN launch saves 15+ accounts, NOPAIN Act expansion, and 800 CrossLink reps driving 30%+ growth in key accounts.
- **Financial strength**: 73.2% gross margin, $59.3M cash, and 2025 guidance of $153-163M revenue with $0-8M EBITDA.
- **Pipeline momentum**: Prefilled syringe for ZYNRELEF on track for 2026/2027 launch, and patent victory secures CINVANTI through 2035.

**【CEO Opening Remarks】**
- Achieved **$144.2 million in net revenue for 2024**, up 14% YoY, with **$3.6 million net income in Q4** and full-year profitability.
- **ZYNRELEF net revenue reached $8.5 million in Q4 (33% QoQ growth)**, driven by expanded labeling, CrossLink partnership, and NOPAIN Act inclusion.
- **CINVANTI rebounded to $26.9 million in Q4**, up from $22.7 million in Q3, with full-year revenue of $100 million (+6% YoY).
- Launched the **Vial Access Needle (VAN)** in mid-December, receiving positive feedback and saving 15+ accounts post-launch.
- Secured patent victory against Fresenius Kabi, with patents expiring in 2035, and reduced operating expenses by $80 million since 2022.

**【CFO Financial Update】**
- **Gross margin improved to 73.2% in 2024 (from 48.8% in 2023)**, with product gross profit up 71% to $105.6 million.
- **SG&A expenses decreased 25% YoY to $100.5 million**, driven by headcount reductions and cost efficiencies.
- **2025 guidance: $153-163 million net revenue** and **$0-8 million adjusted EBITDA**, with potential lumpiness due to legal expenses and PFS spend.
- Ended 2024 with **$59.3 million in cash**, excluding $4.7 million in inventory/write-off charges.

**【Q&A Highlights】**
- **ZYNRELEF momentum**: CrossLink reps (800+) are driving 30% higher growth in overlapping accounts; 200mg VAN launch in April will accelerate adoption.
- **NOPAIN Act impact**: April 2025 implementation will expand reimbursement, aligning with 310% YoY growth in APONVIE and 48% in ZYNRELEF.
- **Cash flow outlook**: 2025 may see quarterly fluctuations due to legal expenses, but core business is stable with conservative CINVANTI ASP guidance.
- **Pipeline progress**: Prefilled syringe for ZYNRELEF in development, targeting late 2026/early 2027 launch, with stable demo batch results.
- **Debt discussions**: Baker Brothers engagement expected in Q2 2025, with Fresenius patent clarity improving dialogue.

Heron Therapeutics (HRTX)-27 Feb 25-2024 Q4 Earnings call transcript

Heron Therapeutics (HRTX)-12 Nov 24-2024 Q3 Earnings call transcript

Heron Therapeutics (HRTX)-6 Aug 24-2024 Q2 Earnings call transcript

Heron Therapeutics (HRTX)-7 May 24-2024 Q1 Earnings call transcript

Heron Therapeutics (HRTX)-12 Mar 24-2023 Q4 Earnings call transcript

- **Cost Efficiency Transformation**: Operating expenses reduced by 26% in 2023, targeting $108-116 million in 2024. Gross margin set to triple from 41% (2023) to 75%+ by 2025.
- **Acute Care Breakthrough**: ZYNRELEF sales surge 48% YoY, APONVIE hits all-time highs with 156 new accounts. sNDA expansion for shoulder/spine procedures (Jan 2024) and prefilled syringe launch (Q3 2024) poised to accelerate growth.
- **Profitability Path**: EBITDA loss narrowing to $22 million in 2024, with positive EBITDA expected by Q4 2024 and $65 million+ cash balance.
- **Strategic Focus**: Orthopedic surgery focus for ZYNRELEF (60% of current business), perioperative pain/vomiting dominance with APONVIE, and partnerships to expand OR reach.

**【CEO Summary Section】**
- **Cost Reduction and Efficiency**: Operating expenses reduced from $182 million in 2022 to $135 million in 2023, with a target of $108-116 million in 2024. Gross margin improved from 41% in 2023 to 62% in 2024, targeting over 75% by 2025.
- **Product Momentum**: ZYNRELEF and APONVIE achieved all-time high unit sales in the last 8 weeks. ZYNRELEF net sales grew 48% year-over-year, driven by orthopedic procedures (60% of current business). APONVIE net sales reached $350,000 in Q3, with 156 accounts ordering post-P&T approvals.
- **Strategic Focus**: Acute Care franchise targeting the perioperative space; ZYNRELEF sNDA for shoulder and spine procedures (PDUFA date January 23, 2024) and prefilled syringe launch in Q3 2024.

**【CFO Financial Commentary】**
- **Q3 2023 Financials**: Net loss of $25 million, down from $41.9 million in Q3 2022. Gross profit $13.2 million (42% of net revenue), impacted by inventory write-offs. Operating cash burn reduced to $6 million in Q3 (from $90 million in Q1 2023).
- **2024 Guidance**: Revenue $138-158 million, gross margin 68-70%, EBITDA loss of $22 million to $3 million. Anticipated positive EBITDA by Q4 2024 with $65 million+ cash balance.

**【Q&A Highlights】**
- **Gross Margin Trajectory**: 2023 gross margin 41% (impacted by write-offs), 2024 target 68-70%, long-term 75-80% as scale benefits and new products (e.g., APONVIE 1,000kg batches) kick in.
- **ZYNRELEF Growth Drivers**: sNDA expansion adds 5-6 million procedures (70% orthopedic), prefilled syringe simplifies administration, and partnerships with medical device reps to expand OR presence.
- **Acute Care Potential**: Acute Care franchise revenue up 48% YoY, with oncology franchise (CINVANTI/SUSTOL) contributing $26.7 million in Q3 and 2023 guidance raised to $104-106 million.


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