Heron Therapeutics Reports Q1 2024 Financial Results and Corporate Updates

Heron Therapeutics, Inc., a commercial-stage biotechnology company, has announced its financial results for Q1 2024, along with several significant corporate developments. The company achieved a notable increase in net product sales, reporting $34.7 million for the quarter, compared to $29.6 million in the same period in 2023. The net loss per share improved substantially, decreasing from $(0.27) in Q1 2023 to $(0.02) in Q1 2024. Additionally, Heron reported an impressive improvement in its gross margin, which rose to 76%, up from 43% in the same quarter last year.

One of the highlights for Heron this quarter was the successful initiation of a partnership with CrossLink Life Sciences, LLC, aimed at expanding the promotional efforts for ZYNRELEF®. This partnership is expected to bear fruit in the first quarter of 2024. By swiftly training CrossLink sales representatives and integrating them into its commercial operations, Heron has enhanced its market reach. To date, 191 CrossLink sales representatives have been trained and are actively promoting ZYNRELEF to orthopedic surgeons, with plans for an additional fifty representatives to complete training in the next month.

ZYNRELEF, a dual-acting local anesthetic combining bupivacaine and meloxicam, received FDA approval for expanded usage on January 23, 2024. It is now approved for postsurgical analgesia for up to 72 hours after various surgical procedures. Heron is also progressing with the ZYNRELEF Vial Access Needle (VAN) program, targeting a submission in Q2 2024, with a launch anticipated later in the year. Additionally, the ZYNRELEF Prefilled Syringe (PFS) is on track for approval submission in 2026.

In terms of financial performance, the acute care franchise saw net product sales increase to $5.5 million for Q1 2024, up from $3.8 million in the same period of the previous year. ZYNRELEF alone contributed $5.0 million in net product sales, an increase from $3.5 million in Q1 2023. APONVIE® net product sales also rose to $0.5 million from $0.3 million during the same period in 2023.

The oncology care franchise reported net product sales of $29.2 million for the quarter, up from $25.8 million in Q1 2023. CINVANTI® (aprepitant) and SUSTOL® (granisetron) also showed strong performance, with net product sales increasing to $25.6 million and $3.6 million, respectively, compared to $22.8 million and $3.0 million in Q1 2023.

Heron will be hosting its first-ever Investor Day event on May 15, 2024, in New York. The event will feature presentations from Heron's leadership team, focusing on the company’s recent organizational changes and commercial opportunities in its acute care and oncology franchises.

For the year 2024, Heron has reaffirmed its full-year guidance for product revenues, net adjusted operating expenses, and Adjusted EBITDA. The company continues to focus on improving financial efficiency by growing revenues, improving margins, and reducing expenses.

ZYNRELEF, introduced in May 2021, is renowned for significantly reducing pain and minimizing opioid usage post-surgery. The recent FDA approval expands its use to various surgical procedures, enhancing its market potential. Heron also offers APONVIE, approved in September 2022 for postoperative nausea and vomiting, and CINVANTI for chemotherapy-induced nausea and vomiting, both showing promising sales growth.

Heron’s portfolio, which includes SUSTOL for chemotherapy-induced nausea and vomiting prevention, leverages advanced science and innovative drug delivery technologies to enhance patient care in acute and oncology settings.

In summary, Heron Therapeutics has made substantial progress in Q1 2024, marked by increased sales, improved margins, and strategic partnerships. With continued focus on expanding its product offerings and market reach, Heron is well-positioned for sustained growth and innovation in the biotechnology sector.