HERON THERAPEUTICS, INC. /DE/ Q1 FY2025 earnings call

• 2025 focus is on disciplined execution, optimizing commercial performance and selectively expanding the team for high-return growth opportunities. - In Q1 2025, total net revenues were ~$39 million, adjusted EBITDA was a record $6.2 million, and net income was $2.6 million. - Reached a settlement agreement with Mylan Pharmaceuticals regarding CINVANTI and APONVIE products, avoiding costly litigation fees. - Mark Hensley joined as commercial leader on April 28. - Oncology franchise outperformed expectations with CINVANTI showing strong growth in average daily units. - APONVIE is seeing a shift in key trends and ZYNRELEF has the VAN launch underway and Crosslink partnership integrated.

Total net revenues for the quarter ended March 31, 2025 were approximately $39 million. The oncology franchise, including CINVANTI and SUSTOL, achieved combined net revenues of $28.6 million for the quarter. APONVIE and ZYN saw significant growth in Q1 2025, with APONVIE up over 432% and ZYN up 60% compared to the same period last year. Product gross profit for the three months ended March 31, 2025 was $30.4 million (78%), an increase from 76% in the same period of 2024.

• Revised adjusted EBITDA guidance from the previous range of $0 to $8 million to a new range of $4 million to $12 million.

Any statement that is not a statement of historical fact is a forward-looking statement subject to numerous important risks and uncertainties that could cause actual results to differ materially from forward-looking statements. Risks are described in the safe harbor statement in the press release and Heron's public periodic filings with the SEC.

Q: On the Silent litigation settlements, can you give qualitative comments and implications for near-term financials or guidance?

A: [Craig Collard spoke about continuing with CINVANTI and growing APONVIE] Q: On ZYNRELEF launch, what should we expect in terms of sales momentum in the back half of the year?

A: [Craig Collard talked about accounts in onboarding process, midyear and beyond expected inflection] Q: On gross profit margin progression and APONVIE's near-term and long-term potential?

A: [Craig Collard discussed gross margin and APONVIE's growth and potential] Q: On ZYNRELEF's inflection timing?

A: [Craig Collard talked about accounts onboarding in June, July, expected inflection in Q3, Q4 and next year]