HRTX - Earnings call transcript Q1 2024 | Heron Therapeutics, Inc.

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Operator

Thank you for standing by. My name is Alex, and I will be your conference operator today. At this time, I would like to welcome everyone to the Heron Therapeutics Q1 2024 Conference Call.

All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After turn now over Legal. [Operator would to the Director, Instructions] I Executive like call Jarel, to Melissa go Please ahead.

Melissa Jarel

and you, ended morning are Executive Chief to you Financial the Forbes, company's from everyone. Chief the Thank Heron for Craig Therapeutics XXXX. discuss good Officer; the With Executive results Executive us today quarter Heron this Chief joining Vice XX, Bill Ira on Thank President, call conference financial and operator, March Collard, President for Officer; Duarte, Vice morning, Officer. me Development

those of For can be also via call. today's website Relations call, and made via accessed it our the Investor of will participating you be page webcast conclusion available the via on conference following

plans, SEC. beliefs that, and is the of let which course a to fact to statement make filings forward-looking required is Heron's shareholders' Before future ] me the intend about Except the law, statements events assumes conference forward-looking actual the that to you you statement not This update this with this forward-looking do and The for and These that public caution company's Act statement. in Heron does statements remind that reflect quickly so. statements safe any Litigation and today's are based uncertainties cause conference expectations, in described and differ of company are risks call judgment and and Securities of not and results important safe in all during on with as release the obligation performance, the from call, statements in the date no webcast begin, the Private statement uncertainties could forward-looking provision in risks a purposes statements. will includes this remarks are of as or constitute to call historical forward-looking harbor outcomes described press statements. these harbor XXXX. we subject of by numerous associated of [ Reform analysis made the those conference under future materially actual the projections, forward-looking of to We

turn would Chief Craig to I Executive now Officer Heron. that, over like to with the of call And Collard,

Craig Collard

Good development and Melissa. Heron general achievements everyone, Therapeutics' you on Quarter pleased corporate performance, the update Today, Thanks, Earnings projects, First we and morning, progression Call. in to welcome CrossLink a financial on update. QX, to our latest progression our including XXXX are

momentum. started We tremendous quarter off the with

received signed January and CrossLink shortly we label where January we shoulder broadens our on of our spine, these which we folks on Meeting agreement X a the events, new XX, X the National of [indiscernible] First, expanded Sales after, had tissue soft all of our surgical into procedures. other on we sales official trained indication and approval ZYNRELEF, indications.

an lead to developed CrossLink process group the training also internal We the of team.

We continued to have We profitability, by reducing and improve this margins. our will believe, with as spend QX of predicted, achieve efficiency by approach, financial improving we continued XXXX.

to want did this quarter what XX been this I has show achieved ago. performance, product just to to on months move slide we Before highlight versus

the $XX.X and loss can XX% business period in net and million, margin we million a improvement revenues, in million for time from have with million well-positioned which we loss right of $X.X to a same had future. million gross XX takeaway over swing a we just on in $X.X from $XX.X COGS the you the this months, net the we The XX%. million, along is $XX.X QX of As In of are an of of COGS in is million. positive path in revenues with see, $XX.X $XX overall XXXX, XXXX, had just

the performance, revenues quarter the franchise product net and $X.X Oncology of our SUSTOL net quarter. revenues for million Now, million to moving the with outpace continues of to CINVANTI for $XX.X expectations on

believe to show oncology safe share will maintain we the continue continue products our We existing market XXXX. these a competitive environment consistency in throughout very to and franchise, a with

the $XXX,XXX Total Acute $X.X a quarter with represented million were million, March quarter which XXXX. $X in ended net Care from first $X.X continued net of the revenues represents $X increase million and quarter the APONVIE increase year-on-year second of the straight for XX, quarter net XXXX. revenues to or was ZYNRELEF revenues greater. million, for XX% for quarter-on-quarter which the quarter to for quarter revenues the

we considering seasonality direction expansion we the was CrossLink. kickoff label the relatively the with with other all QX going knew pleased during had to training are on be we as going the and of with are headed, and quarter we when While such flat activities

I ZYNRELEF's will I uptake in but are on CrossLink, to a did we moment an speak update I APONVIE. to seeing tremendous performance specifically when give mention with want

PONV APONVIE refined take convert resonate as this messaging. had to to see these the from as and realized APONVIE premising our see another to will institutions around have around space. to place. there incentive this impact our slide, retrained by financially this be is going the improved on most accounts. growth of oral team sales come XX just Once XX as beginning begins and, around time a really the trickle Since that we're needed We to country, our board, quarter continued and in focused before of wins and to is impact our sales In perioperative as it the have a bit reps, generally in the versus down issue lag over plan implementation in revenue comp bills approved of in ultimately you October we system-wide bolus P&T, accounts can well. message the sales of P&T But focus can XXXX, growth. trying for to our message net message many management sales new with sales QX Our XXXX,

momentum, very should improve. the are pleased APONVIE We with only and it

the board, for to bring on APONVIE case sell present OR versus during up preparation. reps continue this Heron ZYNRELEF time actually As more will actually free CrossLink management in more our ZYNRELEF for to being and we

to on moving in off spine ZYNRELEF. We the for update, team the are with March. have have and February late field CrossLink the reps that reps CrossLink beginning training and Now, of XXX kicked with joint, been and now at the executive the the out in trained team fully trauma selling [indiscernible] CrossLink

as we the of is ] come and believe still reps apparent are and field more fruits the and in the the training, been the dividends While online. will pay of that the staged QX, initiation partnership ongoing, of timing [ as CrossLink not partnership more many

in expand Our with of to fully integrated plan to being the reach of continue country trained launch and is across year. the reps VAN our over the this QX before XXX

have being the Internally, this by realize, Carolina, amazed in to which trained is more we have month. than product and new use we for their and going on North and In in team This the substantial we South of is ZYNRELEF relationships CrossLink the with had our joint represents team CrossLink. surgeons been Georgia, XX our inaugural partnership orthopedic community, region month revenues. just Carolina, in ZYNRELEF, just time, already promoting the surgical impact in has orthopedic a the X first

unit the country. seen have these increase of sales states in rest XX-fold growth within a the We X versus

and users the in had anticipate to users new the month touchpoints alone, within XX around ortho on days. to introductions XX have we April next We of and XX new come

integrated continue and building We is will just CrossLink partnership. that and while as very get but clear have are the are literally driving, started we getting and we more out to trained into will the car impact reps the play

I ahead, will Chief call Bill turn Officer. Development to Bill. now Forbes, the over our Go

William Forbes

Craig. you, Thank

our activities which some an focused easier During of our access and to providing I well last current will to for that near-term on the that are R&D earnings ZYNRELEF. I story quarterly call, deliverables. as provide cover here update our as again on newer are investors activities, covered

ZYNRELEF the modify on focus device R&D to this expansion, combination component the of Following label product. work the continues to

it to X achieve Access in The VAN VAN. will involves Vial designed in this first or modification is efficiencies ways. the preparation improve Needle, and The

withdrawal BVS. Spike, the of is with Xx the the faster X than vial the First, or VAN currently to Vial Basic ZYNRELEF from approximately marketed

the allow an extremely and we VAN received We shroud all the on Secondly, by ZYNRELEF of room approval into the encasing will the both by finishing ] well have operating surgical We sterile the sterile [ for that VAN this VAN. presentation year. submission up development the in VAN, FDA. the product we in withdrawal the the improved be field QX to testing the even staff. sterile of and and of secure completed believe anticipate more shroud are Presently, activities vial will room the into the time

be approval entire syringe ZYNRELEF no ease new barriers this or and is involve this closure container system removed. of BVS We prefilled process to speed or The and itself. VAN, XXXX. no the QX in the available, vial and a itsef. PFS. just to to In use. of sterilized Once tray the and is The anticipate immediate ultimate OF this solution is be the presentation, program the challenges all preparation sterilization use will There for will PFS ready ZYNRELEF syringe, of product

I turn will now that, Duarte. Ira to With Ira? over this

Ira Duarte

XXXX some Thanks, and results. in will our his for comments, covered OpEx additional and performance results Bill. add has our product QX I Craig points

$XX.X as more was or in the XXXX activities completed gross were from XX%, production product million, Our in quarter validation quarter compared in same in scale-up, which to XXXX. raw the period first the increased XXXX. first XXXX XX% for profit of material The qualifications benefits realized from late fully the and

was compared and XXXX. the June were in period to SG&A reduction [ March personnel related $XX related costs XXXX due XXXX. The million same the force XX, to in million ] months XXXX implemented and ended X to expenses in for decrease the decrease in $XX.X June a primarily

primarily million in the development and months and implemented June June XX, XXXX related XXXX. ended $X.X The a in in to decrease compared X for force million and costs ] personnel to $X.X XXXX, was March comparable in both were due [ in the XXXX. decrease period reduction expenses related to Research

of consolidated expenses and As XX-Q, expenses. operating reflects development general of no the condensed, research operations administrative noted incurred. the from XX, as align the function and and in results XXXX statements of expenses total to change to to in certain the loss expenses This of reclassification with March comprehensive

$XX.X for the was period XXXX. XXXX The net for $X.X million million QX in loss and comparable

to for million We revenue guidance XX% our million given are $XXX to reaffirming and between improved XX%. of XXXX previously margin gross $XXX for

million, EBITDA Our a between be of excluding loss operating between to anticipated $X and positive amortization, income and we to would be that to [indiscernible] $XXX capital. is $XX I and comps, EBITDA, of million our QX operational $XXX raise based spend, current to like reiterate will XXXX. stock depreciation having our compensation to strong to stock and million. excluding million And anticipate this, not sheet in balance anticipate we on additional plan, do

And open now any questions. to we the call would for like

Operator

Thank you.

[Operator the line from We will now your first of Serge go Needham. the begin And Please comes session. ahead. Instructions] question-and-answer with question . Belanger

Serge Belanger

Craig, expansion it's months for Difficulty] got ZYNRELEF. since label X about broad been [Technical the you

highlighted You of the some new indications.

procedures. and do I in? from think the new be tissue soft think you said these additional uptake spine, indications shoulder will you Where

curious I new you forward. noticed going level if base strong a just product first I'm then secondly, a that that's of guys kind for quarter. And had

Craig Collard

part? of I'm first cut the sorry. got your A bit part first on Could off little repeat your question. you

Serge Belanger

Yes.

for expansion number So about There's label of been the was months broad indications. a new ZYNRELEF ago. X

shoulder tissue. label. the uptake soft the in Curious since new seen has product expansion some the You where and indications mentioned of spine, these

Craig Collard

personally experimentation the to product while going with going that and enough, got watch forth, sit interesting had product on spine used We and go sort little of to case. that. use spine think, people the a I different. here they I certainly uptake going we've about bit so maybe of day to what have still had number I think through how have orthopedic think It's going surgeons, approval, Carolina happen and it, I watching I whole into of getting X be, like product, you're to this. a some in apply actually, will kind to used again, that was it, a North through process that is a you're tried shoulder So it, that physician But But of that a spine. able is or we the

I have results that cases I we've good. the seen been of -- So well. went had, In we've the think so day, things the some was far case at

comments any well. that? well maybe as don't as you add if here Kevin, is Warner Kevin know, I that have you to can

Kevin Warner

Serge. definitely. Yes, Thanks the for question,

As it far of a couple things. as label does goes, the expanded

want lot a onesie-twosie procedures, a all able shelves. multiple access, in a product, it formulary have when it branded review approach drugs to of [ these on institutions ] be and the they bring their cover of times, and off, First their not right, with to on

broad X was that big medical take forward to the X in a us [indiscernible] having label getting process takes review formulary accesses. right? electronic the time, record all They So for move So build. months,

seeing So on effects of it provides. is to label QX and expand we and the that the that be label rollout QX, broad and educate going what as

that and painful exposing to can and with to far out that have can a the as procedures go, results procedure, the C-section. facilitate that some significant get and nice opioids her procedures, it's soft a definitely, hospital of target, and to we opioids. without mother, primary infant the procedure other as the spine those we're to procedures. opioids, is tissue target shoulder, Obviously, her new to is definitely recovery, excellent One want target in so seeing ortho we But space everybody But exposure procedures. exposure don't very appreciate the

Craig Collard

guess, Serge, extremely second to SUSTOL. and regarding, the part with and CINVANTI, been we've CINVANTI regarding question your I Yes, listen, pleased

we're quarter. up, had both our volume and fairly think really holding Again, is I good a price well. unit

market bit, So we're again, to from and things quarter still but share. vary growing, quarter, a the maintaining is

and us price. that we've again, hold the share very value helping so is pleased and brings And maintain certainly with been CINVANTI clinical it

Serge Belanger

progress. Nice

Operator

question from the Northland line next of Byrnes Carl Capital from Your comes Market.

Carl Byrnes

[ progress. that profitability do the it's obviously occurring the improvement, might of Considering and on demand to that the the the across see reductions you ]? prior directing and possible quarter that quarter you're the and profit Congratulations trends are achievement board you fourth cost margin think that gross

Craig Collard

a might that the continues. for by that. that on And million. obviously, Obviously, gave hoping of again, the on Thanks going. we range end $XXX somebody we're really we're was just little pleased that, you are anticipating and million And ask $XXX X, it the lower we're if things the question. with I Look, multiply way was we're expenses under. to

or got we and I under vary we the that we narrowing think this litigations our maybe for are hands reasoning ongoing And are and -- happening around within realm is bit. while guidance there feel at not development-wise like things a that we're guidance to due have. improving control, we've our really the this point still business legal again, could have that

bit is to and So way are the out we're here. I a we maybe -- pleased with expenses really little But with things quarter. guess how trying word. be the came we're this cautious conservative going, again,

this certainly renegotiated again, our that also quarter primarily margins, a one with at things CINVANTI. we Regarding used helped we helped things the have few that's just manufacturers of us, and keep down. has APONVIE But COGS

have used we as that we well this not have manufacturer secondary And so a quarter.

going as to margins range. again, bit, throughout lower end still to best year, up we XX% where But hoping and we're range. be I manage that, take us pleased helped to expense can. again, range. XX% are, that the try we're that the with extremely we we're of end we has at on that the going think, kind lower end we're of so up the of to And the But a

possibility so profitability that at earlier. does we there point, could we're still if that QX. happen, to this is But to And obviously, committed a get

Operator

next Capital from line Chiang comes One. question with Tim the Your of

Timothy Chiang

penetrated XXX. many by summer? into. trained? just talk you've to be other to reps that a What think trained And plan reps bit CrossLink plan specific the how said mentioned states do Craig, you then about more could you've X in you And you states have over this fall? the little I you you do that CrossLink fully

Craig Collard

been And relationships these them lot comments, just bring pharma and So, we a years' every that pleased but little in than years. thanks Again, that, X my and cases CrossLink. XX, keep these for Tim, XX, -- been physicians being XX have amazing experience guys in day. a the the the different we've a lot of think are CrossLink's with reps around used pretty on as company. extremely word what I I question. the with have of with a mind Again,

relationship. So a different it's just

forth. allows so us more It to And have these to to ZYNRELEF it situations front folks. explain the get some with so in and of allows us time of

and time our as type up we've frees reps of so And thing. for mentioned, it that

But from He's been next. training and to of little quickly. -- and, on over has give insight involved you we're meetings directly at going to a going it again, more what's want Barozzino. can a training moving we've where and the again, kind exactly fairly David turn perspective, been I these been into

David Barozzino

you, Craig. Yes. Thank

So, you Tim, for thank the question.

CrossLink, to end states. where is have areas Louis, ever-changing already X North the Carolina Kansas, the XXXX, year, country. which conducting in trainings yes, each of that, states week. have from in week as live and hope Georgia. Michigan, goal, weekly all -- to on presence by started and is state. obviously, XX we is we're that definitely of the tell is the we've pertains can it into we to present, it you of the is Carolina, to St. evolve expanded But ongoing to things As and X the legacy that continues a by The coverage I like a across one But South CrossLink to basis, is in end

Timothy Chiang

penetrate that recall one maybe you question. procedures. mean, state seem to that I I near Florida guys term? to pretty a Well, for big state is that's great. And are going just

Craig Collard

that point. -- definitely XXX%. focal a Yes, We is

active well. as there states. Texas, X could you down with some like, distributors Florida, big we are York, California, as And think in lump, discussions I New

Timothy Chiang

helpful. Okay. Super. Very Thanks.

Operator

from next Kelly Your question line Shi with Jefferies. comes the of

Unknown Analyst

This quarter. ] on Kelly. is [ Clare Congrats on the for

Act qualification any context So, could beyond will XXXX? color of takes you Act's the you your is pass-through of And the NOPAIN it give about in possibility whether XXXX? status to change going how go for NOPAIN your coverage the of it could for ZYNRELEF, that after latest effect the in please talk and what's discussion

Kevin Warner

again. Yes. question. that Kevin Thanks This Warner is for

the ASCs to Act consumption. outpatient opioid reduce of surgical of been hospital, It's is the that HOPD to going and have into patients, our department our bundle outside reimbursement XXXX. our QX NOPAIN non-opioids coming So in effect provide proven for for these procedure

ZYNRELEF passed alluded of as has QX now, that right you So and XXXX. through, to, expires

into So with qualify the conversations goes conversations, that and status. the pass-through which except productive of we Act NOPAIN that ZYNRELEF QX. criteria, effect had CMS, is all already for Act, the very starting the criteria all We've one highlighted for qualifies have NOPAIN fact one, those to

confident that's open this So they'll access ZYNRELEF. it that sure make through in sure institutions and don't our period. we're make off And right on. There hitch to and we that we pick in to for still had dialogue, status why pass-through fall be that won't pass it have up reimbursement interim that any

lot encouragement expected. through that. duration, and Act We through to 'XX, the epidemic, support as As end than was concerns the took right obviously, extending designed far little of it NOPAIN Congress, originally of as as opioid community, a act. the passed the get a time now, desired, and to but so Unfortunately, some of later have be X-year from our definitely of a

for provide our extend and to We for these to country expect patients. non-opioids for them our and payments continue

Unknown Analyst

helpful. Super

Operator

Chief That Craig I Collard, turn will concludes Officer, to for remarks. over back now our Q&A the conference closing Executive session.

Craig Collard

Thank to look to everyone and want we listening next just with quarter. thank again for today, I you. speaking forward everyone

Operator

all that call. today's for you Ladies and joining. gentlemen, concludes Thank

may disconnect. You now

Heron Therapeutics (HRTX) 7 May 242024 Q1 Earnings call transcript