Core Insights - Heron Therapeutics is a biotechnology company focused on pain management and cancer treatments, with key products ZYNRELEF and APONVIE showing significant revenue growth due to strategic initiatives [1] Financial Performance - On November 4, 2025, Heron Therapeutics reported an EPS of -$0.10, missing the estimated EPS of -$0.01, marking a decline from the previous year's loss of $0.03 per share, resulting in a negative surprise of 150% [2] - The company's revenue for the quarter was $38.21 million, below the estimated $39.03 million, but represents a 16.5% increase compared to the same period last year; however, it fell short of the Zacks Consensus Estimate of $38.57 million, resulting in a revenue surprise of -0.91% [3] Valuation Metrics - The company has a P/E ratio of approximately -182.81 and a price-to-sales ratio of about 1.13, indicating negative earnings and that investors are paying $1.13 for every dollar of sales; the enterprise value to sales ratio is approximately 2.20 [4] - The debt-to-equity ratio is about -6.48, indicating a significant level of debt relative to equity [4] Future Outlook - Heron Therapeutics remains optimistic about its future, reaffirming its 2025 net revenue guidance of $153 million to $163 million, with an adjusted EBITDA projected between $9 million and $13 million, focusing on new initiatives launched in the third quarter that are positively impacting commercial performance [5]

Group 1 - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial 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]

Financial Performance - Q3 2025 net revenue reached $38.2 million, and year-to-date revenue totaled $114.3 million[9] - Gross profit for Q3 2025 was $26.299 million, with a year-to-date gross profit of $84.088 million[34] - The company reported a loss from operations of $4.093 million for Q3 2025 and $2.576 million year-to-date[34] - Adjusted EBITDA for Q3 2025 was $1.542 million, and year-to-date adjusted EBITDA was $9.530 million[36] Product Performance - ZYNRELEF net sales in Q3 2025 were $9.3 million, a 49% increase year-over-year[9, 30] - APONVIE net sales in Q3 2025 were $3 million, a 173% increase year-over-year[9, 29] - Oncology Care Franchise net sales for the three months ended September 30, 2025, were $25.9 million[24] - Demand units for ZYNRELEF grew 30% between Q3 2024 and Q3 2025[19] - Demand units for APONVIE grew 142% between Q3 2024 and Q3 2025[23] Key Developments - ZYNRELEF average daily units increased 28% year-over-year, reaching 1,127 in Q3 2025 compared to 882 in Q3 2024[19] - APONVIE average daily units increased 139% year-over-year, reaching 998 in Q3 2025 compared to 418 in Q3 2024[23]

Group 1 - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1]

Product Approvals and Indications - ZYNRELEF, a dual-acting local anesthetic, was approved by the FDA in May 2021 and has shown significant pain reduction and opioid-sparing effects post-surgery[111]. - The FDA approved an expansion of ZYNRELEF's indication in January 2024, allowing its use for postsurgical analgesia for up to 72 hours after specific orthopedic procedures[112]. - APONVIE, the first intravenous formulation for postoperative nausea and vomiting, was approved by the FDA in September 2022 and became commercially available in March 2023[115][116]. - CINVANTI, an IV formulation of aprepitant, is indicated for preventing nausea and vomiting associated with highly and moderately emetogenic chemotherapy, and was approved by the FDA in November 2017[117][120]. - SUSTOL, the first extended-release 5-HT3 receptor antagonist, is indicated for preventing nausea and vomiting associated with chemotherapy and was approved by the FDA in August 2016[121][123]. Financial Performance - Net product sales for Q3 2025 were $38,213,000, a 16.3% increase from $32,810,000 in Q3 2024[138]. - Acute care net product sales increased by 67.2% or $4.9 million in Q3 2025 compared to Q3 2024, driven by increased market share and new customers[133]. - Oncology net product sales decreased by 3.4% or $2.8 million during the nine months ended September 30, 2025, primarily due to market competition[135]. - Gross profit margin for Q3 2025 was 68.8%, down from 71.2% in Q3 2024[137]. Expenses and Cash Flow - Research and development expenses decreased by $1.0 million or 22.3% in Q3 2025 compared to Q3 2024, mainly due to reduced contract services[142]. - General and administrative expenses increased by $1.6 million or 13.0% in Q3 2025 compared to Q3 2024, primarily due to new hires[144]. - Other expenses for Q3 2025 were $13.4 million, significantly higher than $0.4 million in Q3 2024, mainly due to a loss on debt extinguishment[149]. - Cash, cash equivalents, and short-term investments totaled $55.5 million as of September 30, 2025[151]. - Net cash used in operating activities increased by 71.2% to $18.4 million for the nine months ended September 30, 2025, compared to $10.7 million in the same period in 2024[153]. - Net cash provided by financing activities increased to $14.2 million for the nine months ended September 30, 2025, up from $0.5 million in the same period in 2024[155]. Corporate Developments - The company plans to wind down the commercialization of SUSTOL over the next 12 months while evaluating potential product updates, with a possible reintroduction as early as late 2027[126]. - The company entered into a Framework Agreement with Patheon for manufacturing and supply, requiring purchases through December 31, 2026[128]. - A recent amendment to the Working Capital Facility Agreement provides for an aggregate principal amount of up to $150 million, extending the maturity date to September 1, 2030[125]. - The company issued $35 million in 2031 Convertible Notes and raised $27.7 million from the sale of common and preferred stock[125]. Accounting and Estimates - There are no material changes to critical accounting estimates during the three and nine months ended September 30, 2025[131].

Financial Performance - Generated Q3 2025 Net Revenue of $38.2 million, a 16.5% increase from Q3 2024, and year-to-date revenue of $114.3 million[7] - Reaffirmed 2025 Net Revenue Guidance of $153 million to $163 million and adjusted EBITDA guidance of $9.0 million to $13.0 million[5] - ZYNRELEF® Net Revenue grew 49% in Q3 2025 compared to Q3 2024, driven by the launch of the Vial Access Needle and enhanced distributor incentives[7] - APONVIE® Net Revenue increased 173% in Q3 2025 compared to Q3 2024, supported by a dedicated sales team[7] - Acute Care franchise revenue grew 67.2% year-over-year in Q3 2025 and 69.2% year-over-year for the first nine months of 2025[8] - Net product sales for Q3 2025 reached $38.213 million, a 16.3% increase from $32.810 million in Q3 2024[32] - Gross profit for Q3 2025 was $26.299 million, compared to $23.352 million in Q3 2024, reflecting a gross margin improvement[32] - The net loss for Q3 2025 was $17.495 million, significantly higher than the net loss of $4.848 million in Q3 2024[32] - Adjusted EBITDA for Q3 2025 was $1.542 million, a recovery from an adjusted EBITDA loss of $0.355 million in Q3 2024[36] Cash and Investments - Cash, cash equivalents, and short-term investments were $55.5 million as of September 30, 2025[11] - Cash and cash equivalents increased to $43.068 million as of September 30, 2025, up from $25.802 million at the end of 2024[34] Inventory and Assets - Inventory increased to $70.025 million as of September 30, 2025, compared to $53.160 million at the end of 2024, indicating potential growth in product availability[34] - Total assets as of September 30, 2025, were $248.950 million, an increase from $233.147 million at the end of 2024[34] Operating Expenses - Total operating expenses for Q3 2025 were $30.392 million, up from $27.810 million in Q3 2024, primarily driven by increased research and development costs[32] Shareholder Information - The weighted average common shares outstanding increased to 170.348 million in Q3 2025 from 152.830 million in Q3 2024[32] Other Significant Events - The permanent J-code for ZYNRELEF went live on October 1, 2025, improving reimbursement and billing clarity[8] - The company reported a significant loss on debt extinguishment of $11.339 million in Q3 2025[32] - CINVANTI unit demand and Net Revenue increased 6% in Q3 2025 compared to Q3 2024[11]

Core Insights - Heron Therapeutics reported financial results for Q3 and the first nine months of 2025, showing significant revenue growth and reaffirming its financial guidance for the year [1][7][3]. Financial Performance - Q3 2025 net revenue reached $38.2 million, a 16.5% increase from $32.8 million in Q3 2024 [7][9]. - Year-to-date revenue for 2025 is $114.3 million, up 10.4% from $103.5 million in the same period of 2024 [10]. - The company reaffirmed its 2025 net revenue guidance of $153 million to $163 million and adjusted EBITDA guidance of $9 million to $13 million [3][7]. Product Performance - ZYNRELEF net revenue grew 49% in Q3 2025 compared to Q3 2024, driven by the launch of the Vial Access Needle and enhanced distributor incentives [7][8]. - APONVIE net revenue surged 173% in Q3 2025 compared to Q3 2024, supported by increased adoption and a dedicated sales team [7][8]. - The Acute Care franchise reported a revenue growth of 67.2% year-over-year in Q3 2025 [8][9]. Cash Position - As of September 30, 2025, the company had cash, cash equivalents, and short-term investments totaling $55.5 million [8]. Corporate Updates - The company launched several new initiatives in Q3 2025 that are positively impacting commercial execution and product demand [2]. - A permanent product-specific J-code for ZYNRELEF was granted, effective October 1, 2025, which is expected to streamline reimbursement processes [8]. Conference Call - Heron will host a conference call and live webcast on November 4, 2025, to discuss these results and updates [11].

Core Insights - Heron Therapeutics, Inc. has appointed Thomas Cusack to its Board of Directors, enhancing its governance and strategic direction [1][2] - Mr. Cusack brings over 20 years of experience in investment management and corporate finance, previously serving as Managing Director at Starboard Value LP [2] - The appointment is part of a Cooperation Agreement with Rubric Capital Management LP, indicating a strategic partnership aimed at improving company performance [1][2] Company Overview - Heron Therapeutics is a commercial-stage biotechnology company focused on developing therapeutic innovations to enhance patient care [3] - The company utilizes advanced science and patented technologies to create a portfolio of products aimed at improving standards of care for acute care and oncology patients [3]