HRTX - Earnings call transcript Q2 2022 | Heron Therapeutics, Inc.

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Heron Therapeutics Q2 2022 Earnings Conference.

As a reminder, this conference is being recorded.

Now I would like to turn the call over to David Szekeres, Executive Vice President, Chief Operating Officer. Please proceed.

David Szekeres

thank joining and everyone, afternoon, you us. for Good are Chief Poyhonen, Executive me and today and Quart, Heron from John With Officer Barry Chairman; Commercial Officer. Chief President and

you can also today’s accessed slides of For page call, Investor to call. be via following of via and available our by the website, those webcast are participating the made Relations going conference of conclusion

by prospects, this begin, Heron’s a the this call the like factors, in the you important strategy not plans, will such future may Act Reform as these and statements, any forward-looking date. would to our including SEC. for forward-looking We Before Securities XXXX. various obligations I of of Private which specifically filings that disclaim be we safe our upon as only representing performance, Actual differ concerning update statements result contain date statements expectations, webcast statements subsequent indicated discussed under constitute results views the Any statements. our any corporate and from represent the remind materially Litigation to of harbor views forward-looking provision of with as of should purposes relied of those as forward-looking those

I’ll over Now, turn to call the Barry.

Barry Quart

thank Thank you, And David. Welcome us. you joining for everyone.

in our been beating Second quarter regarding both John commercial two fronts. good second details quarter extremely discuss franchises, growth has which productive on of a consensus will number of estimates. showed

the provide we the target track September I'll our date. over the planned CINV what also planned vomiting, the progress second designed to times than in should be two, agreement has Interactions made to FDA NDA the ZYNRELEF trials Based late in call PDUFA HTX-XXX four with This the with many enrollment is During now for this cover for for expand postoperative to expanding continued essentially with statement to the sNDA which the procedures. XXth FDA on nausea for million and quarter, turn indication for completing we our XX sNDAX We've indications our on sNDA-number clinical prosecute larger excellent to ZYNRELEF. basis the remain John. inclusion business. for year. potential further for all call

John Poyhonen

to Thank commercial second you, Barry. I'm our quarter excited share results.

We to the progress make significant continue with ZYNRELEF launch.

start related quarter presentation, care With second to metrics number that my business. update During finish an on performance I'll our with with with key results this oncology updates progress. a our I’ll on of outstanding commercial

increase sales Second prior quarter quarter. XXX% which the a net were was over $X.X million,

quarter range of third to ZYNRELEF level to product net in of over been great the has expect currently couple during inventory interest a of prior topic increase channel quarters. are past the the The XX% sales in We the ZYNRELEF distribution of quarter. XX%

inventory is calls, in based replenishing the level is the In excess for described at channel we've distribution there our demand rate we unit to earnings distribution reorder their unit the As meaning inventory a initial every orders hospital the inventory to demand volume, channel. for to of sold order XXX% or goal have previously SKUs. unit in been volume and both ASC. stocking the was ex-factory Ultimately, distribution ex-factory reporting better on channel, understand

results. the demand our X channel unit orders of the QX units indicate in of we demand The inventory centers an through at SKU stabilizing in in same demand are consistent As third with for the through second unit August reorder have Slide make demand we Results ahead based period of reorder sales. distribution the volume achieving burning And demand you of on table inventory sales volume. rate volume. the expectation unit ZYNRELEF future milligram XX% the mirroring see provided XXX ZYNRELEF Thus ZYNRELEF net over meaningful to and quarter can the should increases progress ZYNRELEF number continue goal XX% is the QX. levels at of demand with unit X, on first XXX growth SKU quarter. is the simplify in by modeling rate grew the with QX, in levels milligram unit in XX% far This quarter to XX% XXX%. ZYNRELEF reached

Next, launch our leading to-date by I'll ZYNRELEF of summarize the sharing highlights scorecard indicators.

months accounts also three of year in accounts, in account per encouraged XX% During as continued by growing very to that grown which launch launch. unique from the first about rates ordering launch, month. XX% of the adding in we've reorder new the our at have of We're strong of been cadence increases year first XX have first

We XX formulary for of a our the with since gain rate approvals launch. in formulary ZYNRELEF approvals hospitals run of continue to month beginning per targeted

ZYNRELEF the year Importantly, in on a excellent We key growth delivering component Symphony X seeing first benchmarks ordering we're or formulary. gaining launch with Health supporting number the is critical unique the adding integrated for also indicated based for potential IDN EXPAREL future. substituting to during IDNs of networks procedures of believe therapeutic interchanges our ZYNRELEF account Slide with accounts in data.

XXX add We nine launch. in of accounts ordering in ordering continue with ZYNRELEF the XXX first represents the launch. increase XX first XX% from of accounts of to new an level This months the months rapidly

this with of reorder during of the benchmark indication four ZYNRELEF surgeons the reorder greatest that first excellent believe having are all is We year patients. the rate percentage had strong real-world XX reordering addition, an experience this In analysis. their in products accounts represents growing

While strong, priority ZYNRELEF are in initial results expansion a key XXXX. and aggressive is product usage the ordering in accounts

through P&T those since XX% new formulary making July. the formulary. about actually number approvals. progress pipeline. end is rapid the XXX hospital of represent reported approvals approvals continue launch making continued over end XX committees approvals add This formulary business to slide of to continued we ZYNRELEF total At to And This formulary XXX P&T per accounts formulary decisions has April, approvals. month at with of ZYNRELEF the that our the highlights grow New new to

on approvals evaluations Many product. Those of of the Importantly, for institutions formulary ZYNRELEF. limit cut an are our back with the P&T vacation additional usage year before their estimated accounts the XX for usage meetings of of will of committees The over review restricted schedules. unrestricted the the remain summer end the scheduled remainder internal generally typically year. to for P&T procedures busy XX% to account with trial over

business approvals us pipeline the team. establish help formulary New for a ZYNRELEF for new critical key commercial remain priority a and

have strategy provide to the for to with system-wide of use. for indicated formularies key on ZYNRELEF their to wanted opportunities ZYNRELEF top or integrated for approvals from I IDNs Next, XX% Thus far To targeting create EXPAREL down IDNs. update procedures. networks delivery of therapeutic interchange an a unrestricted new added XX

In opportunity indicated over addition, if X million $XXX potential a these net all sales XX annual converted ZYNRELEF we indicated IDNs annually million ZYNRELEF of representing procedures. account for procedures

meaningful existing Of with a for course, gets no procedures strong the but company opportunity our indicated sales ever creates potential XXX% growth. ZYNRELEF share,

expansion In IDN covers addition, of our million $XXX sales. formulary now annual EXPAREL

that We results care, indications, stages various interchange. from for a superior to existing With dollars for millions it’s to down also which ZYNRELEF not let’s clinical expanded have bupivacaine. looking label evaluating to at indicated product, demonstrated therapeutic surprising IDNs of interested drill IDNs standard Now of IDNs XX in are ZYNRELEF’s on procedures Exparel that the save XX of potential switching are the

we internal their both, procedures. variety the to across Initial wide drive already have surgical interested, IDNs evaluations partnering continues of to with to excited and be very We the trials with be feedback physicians ZYNRELEF. Of a XX pharmacy their ZYNRELEF. XX on internal are with are initiated positive trials

at certainly IDN large ZYNRELEF. a was second positive the IDN takes therapeutic quarter moving While their to the first some are and switching end they the of make interchange now decision time, to

IDN. making introducing we’re impact new quarter, evaluate a the to This help metric we’re with

the Let’s therapeutic evaluating IDNs XX focusing on interchange. by start

first this units grew the demand XXX% half second Clearly, indication of growth. half is expanded the During XXXX. compared XXXX, by fueling to our label of ZYNRELEF

market new IDNs share is adding simply to to we’re This Additional share formulary business new actually are keep the accounts. by plus with important since solid approval, measure units branded divided the market mind beginning ZYNRELEF just of in demonstrate It’s we in Overall, ZYNRELEF in IDNs units get branded lowers new XX total is growth. number units. our Exparel metrics share. these to ZYNRELEF

quarter, we IDNs. has grown XX which formulary approvals, to IDNs last now XX example, For with reported

the interchange from therapeutic also branded have market ZYNRELEF’s we share evaluating unit to provided IDN five accounts IDNs for ZYNRELEF. top share Finally, Exparel the XX of out

ZYNRELEF this a game market for of for of the As CMS of branded high patients Medicare share for care us. setting with changer demonstrates table our can very of the in The outpatient grow is hospital XX% reimbursement pass-through separate status QX. quickly approval for

more the Switching market. to new ZYNRELEF in already times ASC benefits, to This of As the and CMS ZYNRELEF can these it’s than covered with and incentive reimbursement care the the payment a ZYNRELEF ZYNRELEF large in over driver to of savings not a anesthetic these accounts builds switch next affected in XXXB Exparel. XX% reimbursement on existing for strengths critical our that of XX% and A all a XXX key proposition of the paid Medicare component our of therapeutic Based outpatient bundle reimbursement, based acquisition benefit cost is ZYNRELEF. in be And under of separate reimbursed conducting the care. based local by reminder, separate IDNs is reimbursed outside This profitable Exparel. in ASC. ZYNRELEF huge to a setting setting perspective, the the even hospital ZYNRELEF are reimbursement is provides wholesale expansion offering provides bundle rather for where cost ASC without on payment. our drug of for separate setting on XX% may challenging outpatient financial in pricing interchange price X $XXX customers economic hospital years. than financial business using surgical to for continues outpatient cares ZYNRELEF’s per settings reimbursement only to cases separately setting. January In surprising approval patient now important three compared across financial a our evaluations. From of for in experience some be year, also a with setting to this of patients lives million place. the XXXB on savings acquisition cost lower surgical hospital benefits separately of and it’s XX% the using strategy value customers

remain perspective. ZYNRELEF commercial from in for a XXXX priorities key the Our same

Our top usage faster into leverage procedures. expanding will label is surgeon indications priority growth. be the accomplished This existing by new to for new

by is increased expanded accounts priority usage three the increasing usage accounts or of using Many two outcomes support with ZYNRELEF were initially surgeons second routinely on only the their with ZYNRELEF ordering Our based of colleagues. patients with actively surgeons excellent number within their to ZYNRELEF. evaluated experience using their

Increased hospitals. is and continue Our third to approvals for therapeutic opportunity and at to key new IDNs in growth is our interchange. formulary access pipeline priority gain targeted a

separate with ZYNRELEF. to made we growth Finally, which we’ve bundle continue maximize a gives In of leading strong be of for year payment our a confidence number the XXXX surgical progress that us indicators, already for will reimbursement summary, significant ZYNRELEF. outside

I’d quarter second our to gears results the franchise. like care review and for Now, shift oncology

unit quarter, units in nearly This in quarter. a demand growth With was outstanding ever which strong of the XX% During sales – of hospital XX% also our strong our quarter. quarter. SUSTOL clinic care, the over prior compared setting increase units CINVANTI was prior demand of increase XX% to setting net team oncology of with the the by segment. by increased a the in Overall, did XX% a driven CINVANTI portfolio over by CINVANTI job increase units an quarter. increase remain the care in hospital third our CINV care a XX% the quarter over and second the highest demand XX% an in growing prior prior

outlook of number arbitrage ongoing end back tailwinds based the fosaprepitant on a remains continued our of the bring positive past to CINVANTI The CINV the former products over reimbursement for have We year. following improving generic customers discussions period.

time generic As shown a down position are favorable fosaprepitant last X% $XXX competition and Slide same year much XX $XX based than reimbursement. the to in more reimbursement Akynzeo in the table plus IV much more favorable SUSTOL with – both versus and on CINVANTI ASP below to on down the

the this more proposition In addition, hospital separate and the elimination generic CINVANTI attractive made effective the outpatient this January X value of of reimbursement segment year. much fosaprepitant year for

increase year a $XX XXXX year. to over representing net to million $XX XX% prior increased XX% been sales has at full guidance Our range to million of CINV the

both the In we second which products. addition, lower in be units to the be expect partially sales higher for half XXXX of demand net prior compared offset to by will year,

effective of that January in the Finally, XXXX, guidelines July ASP X, plus rate CMS compared that increase the XXXB X% current ASP minus published for will to new accounts XX.X%. indicated reimbursement the

demand in back of over this sales That new I’ll unit XXXB CINVANTI greatest my accounts, help call And in increase fourth unit us hospital portion in the XXXX. opportunity quarter prepared believe our to remarks. With and now the we Barry. completes sales will turn the

Barry Quart

reductions of allow operating are we restructuring, from the burn annual cash a to Thank by positive us to a private margin and announced improvements June, coupled you, reduction projected over placement to expect in $XX with provide financing in XXXX In this we measures, cash become achieve in runway and the in included XXXX. announced cutting to which manufacturing and million flow a move XXXX. These expenses morning through reductions John. headcount cost Between the other year large end. gross XX% scale in restructuring to

As $XX.X our Adjusting for equivalents of $XX.X million. had cash and proceeds of Heron cash, XXXX, Heron investments investments XXXX had private million. short-term XX, cash, from million cash equivalents June of net of $XXX.X and placement, short-term August

Second quarter burn $XX.X million. was

While for reductions a going key the few is expenses one-time projected the quarter due the to XXXX. with catalysts review I’d take in burn further restructuring. Fourth burn $XX and quarter company. a approximately into increase to million like minus significant of third accomplishments the be to minute to will

second we XX% first As in ZYNRELEF compared discussed, units have increased by quarter. to quarter, demand

are complete to difficult year. one on the sNDAX for contract ZYNRELEF. a goal in the laser are Unfortunately, business in not still manufacture second has further studies expand such getting area we’ve validated this development successfully quarter. our was submit deal done we focused completed to And clinical for manufacturing development large where more did or indications to scale business predict, of the we deals One enrollment needed timing but Our to meet deals the ZYNRELEF.

Franchise, territory, $XX million regional growth discussions. The $XX resulting good active in we at in full sales, and Oncology XXXX least we have each to For at year least one Care major in multinational guidance company one raising our to saw million.

John questions. for Operator? available With revenue. hospitals, As these CMS extremely reimbursement XX for attractive we XX on we’re important our to which CINVANTI safety information recent These and we ready believe will the excited an for additional very by contain XXXB in makes that, are opportunity Slides mentioned, change website. be ZYNRELEF. hospitals slides generate for

Operator

the Folkes [Operator Instructions] And with line Cantor Brandon your first Fitzgerald. question comes of from

open. is line Your

Brandon Folkes

for it talk two cash thanks some switching questions then XX And secondly, evaluating me. that they gradual that million business? model – XXXX something as and what taking all evaluate on a just when congratulations to experience? will is Hi, it we quickly the of look is How progress. product? Exparel that? business, will to using Is switch? by at that patient all they date flow pieces of IDN hurdle the of or Thank they’re it my switch you. the about does then surgeon Maybe from And just Can should the and you their a just $XX Is the positivity drive certain switch moving revenue to decide shift? that take you as of sort

Barry Quart

I’ll Brandon. to because the second leads have John first Thanks, question the answer question. into answer the it first, certainly

John Poyhonen

Brandon. Good Yes. morning,

based on evaluation XX IDNs, specific set that be will So regarding the procedures. on generally, an there period your is question surgical

the see or lower repair, total what extremity start rather. arthroplasty frequently So is replacement if hip TKA we they’ll in like

really key at in to what looking surgery. a parameters. at abdominal like, medium addition, And generally In they’ll look small is surgery, bariatric something they’re

on discharge. systems IDNs, the are are look Those importantly, but at amongst to opioid three to may each look of others. – look different there typically each respect is most Respect the generally what those rapidly they’ll differences these move a some change, and are reviewed. they’ll And be individual usage. to So reduction over at time They’ll – impact also more bit time days. with than – at pain of

market think – that in the third in on up fourth from went share actually, quarter. XX, have one provided second of XX% report last there’s today to and we IDM IDN you quarter Slide year, I but we’re number that XX% number see didn’t any or can one the the

pretty So we commitment. start But get certainly quickly a a it’s move expect XXX% would that situation of once they can of business. making the type they to never where Exparel

I fairly that think be portion a believe we it. very that would rare, we but can do get significant of

So answers question. hopefully your that

Barry Quart

Thanks, John.

is associated obviously, moving burn. with the parts positive, back decreasing it cash associated flow Going to becoming partly with

As mentioned, base out reducing costs and significant organization XX% our we by in a approximately of taking did burnt. restructuring June,

efficient at to increasing ways an also more is that here in continuing always margin. look contributor it be to important We’re regard,

we’ve to ZYNRELEF. manufacturing large amount invested of discussed scale CINVANTI significant for as previously As money Heron for has in as well moving

have we end that And ZYNRELEF. to almost We process for that now of the are accomplished CINVANTI. for

anticipation manufacturing sell to of going an opportunity of being market, increasing a for is certainly improves the used That’s product next HTX-XXX that with And large that. able market terms being that bring take that approximately oral after over that units. and set of the to the drops HTX-XXX So is quarter substantially. expand we has IV significant course units that line obviously, just our of margin as our PONV launching XXX,XXX product oral very in And the push then currently to we of exciting beyond a of will aprepitant. that fourth in portion CINVANTI years, to product two anticipate start from we sales also bottom scale like

a with Go extremely that – next on use, HTX-XXX. previous be of component to of easy this to has effective forums, become like will the convenient, the product an important PONV. for We question. most prophylaxis demonstrated and one PONV certainly molecules administer As to in discussed easy for believe been we’ve molecule aprepitant to

Operator

Your question from of the comes Schimmer Josh Evercore. next line with

open. line is Your

Josh Schimmer

the we that’s address Great. with start in been the I below, in changes where why may, place Thanks ZYNRELEF case for to whether or have clearly think maybe to indicate can Maybe have the launch I put can taking Exparel few if point measures you at but about strategy this any time. XX% was that. questions. a is and specific

Barry Quart

Good Josh. Thanks, question. Yes.

to beyond hampered As terms the label. of use we were two the unfortunately the you market quarters product surgeons’ restricted And know, in the misread label. significantly very willingness launch first by the limited of

research the an product, not the impediment out that significant turned launching it market be be impediment had fact. label Although, to in would indicated to a

first So and slower million the terms much, there’s surge million. around obviously, the from than the of COVID, covered the of early the particularly X expanded the were much at was the label two quarters, Omicron obviously, over this year, right launch we launching in procedures time, to broadening impact anticipated, of X

the I associated data our starting ZYNRELEF in new hit movement into think product see as we that the now based both clinical we’ve bupivacaine on ZYNRELEF. IDNs to showing to well of moving have terms obviously with superiority to the started switching economics Exparel start as of institutions stride of the to versus

entire go of after the we’ll I between many approval that So to growth. projected. year be the now a good that absolutely I corner year. But continue think And it launch as has we’ll sometime position now lot the And near factors of on the think turn starting market. to us. to have been the then end we’re the expand hampered submitting much indication next of noted, involved. the we would we finally further to with And anticipate issues of have start that statement the sNDA than and see in slower A

Josh Schimmer

obvious you given mean, was, missed out factor label research your turned something do to that the I narrow as as how it. market think be? Got obvious why

Barry Quart

some only local which pros an impediment. we into Well, early that three John specified this. you color off procedures. the the anesthetics. sales And we be limited that reinforced anesthetic, we an I fact reps with that label. else the they going large surgeon using indicated in that be anything OR not on product was to I’ll label have the was reinforcing But didn’t if that indicated for aspect of John, account One those We the comfortable understood a a needed the of research, cons product we because really give number three the they were using was specific actually the add. in the on wasn’t label, procedures factor and interviewed take local were the used the permit if our the would to to of let concept surgeons use marker don’t in that to know stay

John Poyhonen

the the that very you summarized it that based you think how launch if very at one at add The quarters, I had of which and initial just well, is I No, look just launch. limited really question, Josh’s we’re thing Barry. two we label on because would evaluating past the

During we of much sold, if to the get tracking And that’ll label. we January as units. first the quarters expansion Exparel we And so, XX,XXX X, the sold launch of approved. think think we’re two continue more over favorably just first we with sNDA XX,XXX, start even over expand at you

Josh Schimmer

of what maybe Got you’ve adoption? your make there’s terms large not have what expect another for is formulary of of to in approvals, like left indicated I I questions. Where formularies do past, based XXX formularies go. where remaining are initial One think you’ve And looks yet on expectations the still approved? the on to the in number formulary for been progress you you it. couple

John Poyhonen

Josh. great Yes, question, a that’s

single get hospital So takes and of is one system would that IDN the it or IDN XX that and hospitals may the an an even of those it we only is, some just get is number the entire approval. within first if that level approval has accounts, approval IDN thing you I evaluate mention with the to way IDNs, formulary XX

procedures thought go XX% in great bit. like So that we’re we a would have tried really about on would that to think Certainly at in good my already by ZYNRELEF And we comments, But surgeons at ordering ordering, faster. to getting approval it But if the also our that ZYNRELEF forward. ZYNRELEF existing we’re we’ve we expand indication. we’re to as that are our a based would it’s we where to surgical or have getting those increase think business. with you label I and that’s got it we approvals rate XXX over need seeing new as that we’re – far just the at And the ordering of see have, rating. usage of I getting very use surgeons we we additional I within just track probably We and accounts. accounts. undercounting believe as continue the success accounts a as base of accounts we XX% accounts And evaluating need to in we’ll the increase talked those It now. go formulary right accounts, accounts be, number look more usage

Josh Schimmer

clear So percent sight or now a a coverage line addressable formulary behind coverage of year? do market of the to for have you what

John Poyhonen

XX% were initially based So had if you take looked be the the in percentage field look on overall a about we the to at we market. targeting that of reps the

I of that. now, coverage around we’ve got, on somewhere a right probably So based say would formulary the got we’ve that third that

to push we probably the the got, hope XX% Josh. XX% to over would end opportunity, the say we’ve of XX%. year, And So that let’s of by

Josh Schimmer

still like go. long sounds fairly way to That

John Poyhonen

at be ordering move look certainly, those accounts can that from we as as accounts, we type we business take but forward. growth far significant and as you the it’s of opened generate ordering getting number Well, think of everything the that a up, there’ll if

this getting So by think hospitals hospitals in that And slowly been I in growth seen tend the from But reorder any to and hospitals. quarter-over-quarter, as ZYNRELEF it. demonstrated the units different is great are the the well no that’s other using certainly rate move hospital we’ve are than as launch. that results

Unidentified Analyst

And last and you Got many. so for indulging thank question, it.

about launch XXX relative SUSTOL can that What CINVANTI is it help make more or features maybe and we this like us for As you really might dynamics and market SUSTOL think flake? CINVANTI frame and the than to ZYNRELEF. like, opportunity, PONV

Barry Quart

want John, do you that? take to

John Poyhonen

had and what clinical really emesis they’re on to with on the far weekend product any marketplace. very as PACU out you one, our great really reducing move much a is profile do product number outpatient. the selling a And ZYNRELEF if it an quicker, is procedure as from to surgical service discharge in was perspective, get we to best the room because advisory surgeon touch it, to XX be we to to will the procedures we product drug be just And more because really prep use from It’s is interest use board the and Sure. well a how talked that and that vomiting so question. how we of And think XXX. where of the CINVANTI operating orthopedic much surgeon of the moving XXX perfect about second the how to to it. at IV like, to is, knows there high do focused to how last staff because as Everyone And and we a as the have support push. on got then patients it’s look high them in

what strategy perspective, pricing uptake the perspective from ZYNRELEF. access in rapid be got we So, than our much, gain to we’ve since the out easier we’ve come as think rapid with right the much in-service seen well that will to marketplace, as

Unidentified Analyst

Great. Thanks very much.

Operator

comes Peaker Boris Your line next from question Cowen. with of the

Your line is open.

Unidentified Analyst

few for a Great. questions. have Boris. on question. Nick just I my This Thanks for is taking

– need for interchange to many on one would that, surgeries therapeutic a how the that that couple how long in decide how are example, take? I interchange? total IDN example, each surgery, those indication? need you is a around could hospital of and would evaluating how be therapeutic have could the have or – And patients, like interchange different know or top for different many The IND IDN know you would trials in individual will of the for a for they they also first Do they surgeries. like only mentioned long that therapeutic be it – to

Barry Quart

you to take want do John, that?

John Poyhonen

Sure.

time So on at the tissue that be conducting it really a it an suggested, that model that it. looking Nick, and as are the the of evaluating. in And on they’ll number number bony over depends they’re may of you it. within length or accounts board a soft surgical really of hospitals be there’ll depends Generally, accounts procedures all on the and be IDN

accounts range. each seen the As far more of several seen We’ve as size, that the make are their XXX to in we’ve decision. at some looking XX

by account it depends basis. account So on really an

that So we it’s really by the IDN decision had for say was say they tough March. started probably positive have would made ZYNRELEF. during the in that quarter, to the second predict, end of their evaluation. I And the but it quarter, is can first second their what and I

are ZYNRELEF they actually switch procedures. looking to for indicated So

go in type And that’s most through than really that why look procedure. our expanded accounts will so process, more to helping you use I ZYNRELEF they think of broadly a If important surgical is label single strategy.

Unidentified Analyst

not end Great. you more it start then evaluating just therapeutic IDNs rest for interchange? And that? are for for Is it time that But on Thank on to evaluating them that the would the that would’ve it you. something them? currently take just or What is actually take your that. would so follow-up takes do of what to a

Barry Quart

that a that feedback give the before with of look they on more to just Based ZYNRELEF some aggressively. at them moving we’re hearing, experience want bit

they some if the of of look already other the or therapy. promising they using Exparel over used accounts market XXX% products quit in made on IDNs, never out on we have based share of that I a because XX at point either it because branded you I’d think would already duration thing I that the is

do that has it broader much with of IDNs a and experience good from expand feedback label group that. rather to their to patients really to surgeons broader think I a much and So or everything considering getting

Unidentified Analyst

Thank much. you Great. very

Barry Quart

Certainly.

Operator

next Your line Company. Needham and Belanger question of comes with Serge

Your line is open.

Serge Belanger

good PONV, ZYNRELEF on a Hi, on Couple then PDUFA. questions the morning. upcoming couple and

down of demand units if be some ZYNRELEF, XX% that quarter. quarter. the you unit talked discussed So over share? the of increasing you first Exparel break ZYNRELEF John, generic XX,XXX displacing in up are expectations hospital guess in And wondering also you at that bupivacaine XX% to Can I on point you short segments I and third about would sales for maybe taking second really ASC then and this the quarter-over-quarter between the guess, or to secondly, just

the maybe so talk five, in Thanks. what six of quarter? the weeks maybe So seen about first and third just you’ve the assumptions far

John Poyhonen

Okay.

So the account coming about the first question ASCs. at on an be business from If That it’s where been from right it XX% XX% is from now, hospitals, ordering perspective. you coming from? would look

it’s hospital, XX% So into if XX% you convert about that units, ASCs.

coming doing stopped extensive we’ve we good the during that got back to excited growth XX% especially a for and XXXX. got softness continue XXX% own. they’ll What which we’re very see has on elected enter evaluations the that back, about traction to branded will there. coming certainly, last we really Exparel just to share be was superior growth, to think from? or as There us of this the been And XXX your good And of our the a XX% But the I as continue the the we two been is the benefit with cocktails QX there I publish ZYNRELEF we We’ve their been great patients results. surgery had all doing as ever. strongest on to they’ve where had some Exparel have on be in with both finally, couple put accounts overall together never that weeks market bupivacaine and in year, product think see using in go It’s forward. second looking of several of clinical question. we against half certainly and So generic a my mentioned from it business Where’s the some response. bupivacaine used that first were accounts based

So looking and forward to quarter of continuing that the throughout the third year. remainder the

Serge Belanger

Okay. require expense the XXXX? marketing you And taking with kind then don’t that Secondly, I additional expect launch? the know mentioned PONV marketing Thanks. Just – how impact the review site did has we PDUFA, product if past. But progression – OpEx require the this you’ve could and in should a of this inspection on did in upcoming thinking that place? inspection what of NDA

Barry Quart

Serge. Thanks Yes.

made as to sold vial which over CINVANTI, know, So smaller of million inspection. of require date vials a this you an product not and is X did CINVANTI which we’ve

here no change. is for end the that There’s situation very And also in of for a manufacturer are the HTX-XXX stage cycle. the We will review indication CINVANTI. manufacturer that

that So I significant question, make excellent think certainly it the have utilizes product, great and care setting. to expenses In of is are about it.\ in a track resources when the should focused that leads of record expansion acute asked because able things previously. there’s And being a a point very the HTX-XXX question sales that manufacturer of our bio we size larger the terms really of one – is it to was already highlighted that

is so additional anticipate to already have And in they’re an the because talking field, out surgeons, already investment target the for reps we audience HTX-XXX. we exactly the anesthesiologist, significant necessary don’t

a increases significant them into need so additional without as and the And say in any personnel. this they the it’s cost add without perfect to the substantial bag, segue for for

and published how on very can molecule because the at mentioned as effective PACU. be is patients issue might recovery. into having world, John one biggest getting be not today’s as economical surgeries not So for out in the the or really we’re an product the kept the because not looks staff in they be for when PONV. exciting the staff data seeing scheduled door otherwise patients afternoon about to there’s being there’s sufficient concern And And

you we out get example, be attractive. to the easy patients extremely this setting, helps ASC that for to going use in product can safe think you use door if the So is

Serge Belanger

And of P&T process the just via that’s I kind to one for guess, formularies approval more, same adoption? a going this is product require

Barry Quart

setting. towards molecule it million over PONV. hospital to a Again, approach pills administration however, It’s a simply to very convenient hospital more for X.X in the being as product committee in certainly already still oral used would a Yes, is well a itself that’s formulary the go known. product need of

large committees it to terms well, press as so as approval. market the two formulary of of launch. amend we possible very And we’re in that that CINVANTI But similarities smoothly. required back get first portion certainly obviously, of quickly went relatively when that to from to remember as hard acceptance launch. a P&T the going And in years certainly product process the within took probably launched And you has which we regard that most the as

Serge Belanger

questions. Thanks the for taking

Barry Quart

are questions remarks. no time. further turn call Yes, at now certainly. the I Barry There for will this back closing over to

Barry Quart

today. thanks everyone us Thank on call And for you. the joining

updated. We’re with we you really quarter keeping this the pleased to look and forward progress

Operator

your conference Ladies for today’s Thank call. and participation. concludes gentlemen, that you

disconnect. now may You

Heron Therapeutics (HRTX) 9 Aug 222022 Q2 Earnings call transcript