HRTX - Earnings call transcript Q3 2024 | Heron Therapeutics, Inc.

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Operator

Thank you for standing by, and welcome to Heron Therapeutics Third Quarter 2024 Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Melissa Jarel, Executive Director. Please go ahead.

Melissa Jarel

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

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

Before you caution of is a of will course we is that me begin, the forward-looking historical fact make let that quickly statement you that during company a statement. call, conference remind forward-looking any the We statements. statement this not

about Act XXXX. remarks for forward-looking constitute and provision under Securities projections, of expectations, the the harbor company's statements all performance, the safe of plans, Private future Reform includes beliefs which the of purposes This Litigation

made judgment associated harbor uncertainties described These and of those the subject risks risks the in statements important materially are The based forward-looking to actual public filings to press Heron's webcast periodic in forward-looking statements. numerous differ this with release SEC. and and with today's in and analysis conference results the in call call this from of and statement could are cause date uncertainties that conference described the as safe statements are the and in on

And Officer intend the to assumes or so. with outcomes now Collard, forward-looking call to events statements by Heron. do actual I turn Except Chief these Craig to would Heron not reflect does law, no Executive over obligation that, as update of to like required and future to

Craig Collard

for including revenue, Earnings Good morning, achievements expenses are Today, adjusted financial on guidance, and we adjusted of includes Call. to XXXX Therapeutics to Melissa. Quarter EBITDA. net our update Heron third latest a everyone, narrowing the quarter, our you pleased Thanks, Third which the welcome and operating

million We million in net on given early XXXX the $XX $XX to a of already range have based also achieved QX QX. revenue guidance success

Needle final which We of and the of the also received VAN, version NOPAIN Vial in we approval on into XX, of XXXX. been have effect included in Act, or the September goes January FDA Access

Last, to our ZYNRELEF CrossLink partnership this now could positive continues for that beginning and progress, see with as are forward. we we impact to move have the

in for As these through speak greater I of I move comments about QX. my achievements today, each will detail

to Moving performance. financial

to revenues. continue efficiency We improve growing our on while financial

time and million. $XX at from from past months, just gross grew of a disruption to over Over improved we change doubled the XX%, the and during million $XX profit margin X company, over XX% revenues XX% gross to

importantly, for we did burned less in cash More than XXXX. million this $XX and

focused all in driving of of have line, revenue we that efforts have expenses product our growth Now on been our portfolio.

guidance We growth sales, be is have it we early $XX based $XX already which our million. on view an QX, anticipate based on our revenue weekly an million was going important begun quarter of to give see why we excellent to into net to which felt is to

spend very a a why positive VAN now impact Act ZYNRELEF. few would to discussing and will the I believe like NOPAIN have we on the moments

on VAN, September was the which approved First, officially XX.

while One itself maintaining drug been of of issues drawing the out main the has around ZYNRELEF preparation the with sterility. vial the

the simplistic, with we left creates VAN. snapped vial of this than minutes to of right improved depicted is a you sterile easy-to-use couple once slide, from seconds have withdrawal a on to XX can environment that device from As the the see, less time into a

on process and December. the the having We the anticipate by VAN are of now market first launch in the week

June. in for Act Act. to NOPAIN rule XXXX proposed the the CMS for NOPAIN released back the moving calendar recently Now year

have opioids $X.X was for that were for the $X.X The instead. our The month, This utilize CrossLink the of is increased could quarter will the based ZYNRELEF non-opioid financially incentivized goal CMS We ZYNRELEF assure a quarter Heron the of were ZYNRELEF to believe, released net the nice of million. are the many footprint also revenues non-opioid revenues revenues was payers net final and to on endorsement patients action not suit. million. and with is the major certainly final the follow partnership. Total to act a past care rule. combined accomplishment more net provide commercial quarter and and label for were to the due just when included version act million. access in for and VAN, commercial for $X.X alternatives APONVIE this tailwind acute providers therapies expanded

we to While forward, our that with progress, pleased QX. promotionally. we the going we quarterly moving dramatically should were start increase knew transitioning in that growth have We many things still are we on also our believe with

entire XXXX. that partnership have the our portfolio. only we are of Earlier, spoke beginning to an the and both now, in impact ZYNRELEF, Right ZYNRELEF early VAN Act, on not product NOPAIN but is growth. will seeing will drive have the impact items These an about across CrossLink which I results

here. a key CrossLink When has from rep sales account a force CrossLink an our introduction a marked surgeon, on that and account. as material new a or is like trial team Our almost contractors trained a whose CrossLink a early impact account XXX distributors impact makes shown

is accounts the of growing that that there ordering are On you these can ZYNRELEF. number left, CrossLink a see

see a cumulative the increase In this ZYNRELEF as on contribution to steady is accounts way the look units are of first of our these monthly whole. chart, an are forecast These of CrossLink another in adding the in we XXXX. CrossLink right, accounts drivers key per month, middle the newly accounts for among XX units in metrics currently are began number And CrossLink a we We month. at ordering program a CrossLink per set month. X qualified of XX averaging April. we units If of currently since average the threshold

in $XX revenue. program net $X.X to to October XX,XXX accounts I amounting roughly these is the want ordered date, just have to in in CrossLink results. result Nearly million underway, that getting revenue. emphasize this million net been early in and are Annualizing would units units over

very or are a about all how cylinders for perform X. quarter we on partnership excited running will once this are We

moving APONVIE. to initiative Throughout XXXX, Now Heron the we integrating been units have under business discussed One previously. our I've

X accountability efficiency. would One only small our customer-facing As Heron oncology. the a focused within versus sell company is mantra reminder, around divisions our Again, acute was all and product of so approach implemented, entire having internally portfolio or teams our

the APONVIE. this been and access of teams key the of has approach adoption gaining benefits One of on cooperation the among

over the accounts are managers charts on-the-ground it hand-in-hand and and to trajectory. teams even access team you this national expect that with top-down specialty has in number When new what wins the ordering clear we surface Our can is our APONVIE here, tripled just look do. months, to be growing, but a accounts at generate working on pull-through. shown of last XXX product ordering think for The and is XXXX APONVIE the XX territory X entering coordinate we October is business scratching

gain new really XXXX. think in sold of can accelerated number to providers units average trajectory more This has and in APONVIE be the the more APONVIE seen. really hospitals, daily their where As access is of I

to with annualize motivated really The over gained team $X would simply daily in XXX units is momentum you million If in average the APONVIE. we've sales. by the October, translate this

like is are Just come. we to excited with ZYNRELEF, for what

continues to performance on Moving a franchise base oncology for our The company. franchise. strong product with oncology to foundational provide our

revenues of had net revenues million the quarter for net $X.X of $XX.X the SUSTOL for and produced CINVANTI quarter. million

strong back Although a anticipate QX XXXX. net throughout bit revenues were QX, bouncing down in we and from

As brings to can we share around quarterly has market allowed value us we a maintain stated a CINVANTI, fluctuations, with XX% CINVANTI in cause the this have but very that clinical before, of are market. competitive which

in will ahead, I still full our also the in that believe protection patent anticipate over CINVANTI financials our have We will turn and Go our to that and cover to update until financial Ira expiry call we ANDA litigation guidance. now Duarte, prevail Ira. XXXX. CFO, the will

Ira Duarte

Thank you, Craig.

or due the product in XXXX. XXXX, $XXX.X our period quarter the million $XX.X not profit we comparable XXXX, expenses XXXX. from in was quarter which in same in SG&A were inventory profit the the $XX.X XXXX. respectively, was of to for period $XX.X million, in gross was that product XX%, million million Year-to-date, or the and see and same to $XX.X the XX% Our ended months for current write-offs for an September period the X did and the $XX.X X This million, experienced from September XXXX. increased significant X for the primarily increase XX, respectively, compared same million XX, fact XX%, gross XX% ended months

departments. in $XX.X reductions for X and comparable XXXX. in periods was decrease and months to September cost decreases primarily Research in in The XX, expenses improved years million $XX.X due among $X.X million the efficiencies million in were as as X and personnel costs compared and and the ended million $X.X to XXXX, related all development to prior related the well force

decreases the previous reductions as implemented was activities. related to to in decrease decrease in related development The due primarily and personnel in force in years costs well as

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

was was short-term year year's million cash periods XX, Unlike months net million. to management. million. the less September the loss were million, not Year-to-date, incurred XX, for million business inventory Cash and comparable ended at inventory $XX XXXX, compared write-offs, $XX.X X $X.X for investments to last XXXX, September and for of XXXX, The year-to-date million. was $X.X and write-offs $XX.X The related million XX, than ended the September current we months for respectively, X XXXX. write-offs overall the in $XX.X $XX burn

addition, asset forward-looking write-offs related to part company's projects of impairment also primarily longer strategy. no In $X.X million, we the of recorded

and As our you adjusted EBITDA impairment results the on which inventory you in excluded had financial have business. turnaround asset million a operating $X.X will income, a the management substantial compensation, see stock-based write-offs the positive slide, if depreciation, of represents been would write-offs, the

year-to-date As overall year. of our a cost the rest guidance result for the of revising our measures and we performance, efficiency are

$XXX revenue. $XXX narrowing revised million of our a QX range from of to guidance to revenue million are $XXX range $XXX We net to our million million net

We are million to previous million excludes range guidance $XXX write-offs depreciation operating range to revised $XXX our our expenses, of narrowing million stock and for to fixed compensation, a from asset million. of QX which $XXX adjusted $XXX

open to QX adjusted revised range any a EBITDA narrowing of million call asset we'd million. fixed $X stock which Lastly, the to to and negative inventory of $X million guidance range, positive write-offs are And to positive now depreciation $XX like we write-offs, compensation, $X for our questions. excludes positive million

Operator

And our line question of Kelly for comes from today Shi from the first Jefferies.

Jose Lora

for Jose is This Kelly.

Now that of the should users forward? ZYNRELEF VAN is about curve mix between is what think the customer uptake anticipation we existing approved, new how and users? And your moving

Craig Collard

Yes, thanks question. the for

accounts and get product the comfortable So December. And currently, of We're having make the market we and with the no by places off with the in launching to sure to really that is few that plan customers' hands anticipate week product. to to with that comfortable start VAN VAN, with going folks so in a are that first there's the the very forth. before the issue in with

walked the Beyond away where to is had an I that, accounts that we're mean issue. an have by then the And we've product. what of that account before preparation due going maybe to

that we again, a so fall into of category. number And accounts that have

that. think you I So have

and And on, that the fact that the prep have talking we obviously, time. we've been is improve that this brought out has will new device coming about accounts with then any CrossLink

time So has while we're of does the because issue the and the extremely with been excited of [indiscernible]. out product for about really an and quite addressing also prep it the that really there this potential solve a

Operator

our Markets. And from the from question Capital comes of next Northland Carl Byrnes line

Carl Byrnes

have My been questions on answered. VAN

decline outlook I to on that third you in for and provided. terms given to sequential then the CINVANTI. quarter, of in fourth bit comment the guidance So wanted kind the could nuances a if your little back quarter of I'm wondering you circle the the

Craig Collard

Thanks, Yes. Carl.

we've ASP As into competitive an before, It's just extremely so folks said and coming obviously forth. in with a market market. new and CINVANTI things the going lot reimbursement is of

But an around thing. an And lose you you type have so quarterly we've share. maintained fluctuations account XX% historically that where account, and of win these again,

in large that talking of was that things. the quarter have revenues. mean by account is Heron I for about the approach obviously fairly comment net And the so But entire really when portfolio we're And what we lose did a that we product wanted that is QX, showed which CINVANTI in One make and sort I my across we reasons gave now I to -- really product to fourth whole the one in we guidance the this selling up we did portfolio. is of

of had we've And that many never people. our that quite so commercial-facing before with focus

able the And on so take hospital been new of of to accounts what going we've of outside really is side the XXXB CINVANTI. after with advantage

seeing uptake that we're bit already QX. of so a quite And in in

expect CINVANTI we strong perform year. so next And bounce and into to back again,

Operator

Instructions] from [Operator Our the question Needham. Serge Belanger next comes of line from

Serge Belanger

one results. second tick a took XQ quarter. on also I guess down OpEx the from first

still to month quarter you litigation the in a should Just next wondering level year? think by lower of if expect end or then, going going the a And back this we the the of or sales CINVANTI, forward? decision third around it's base is do new a court function Craig, of

Craig Collard

Serge. to from Yes. hear you. Good thanks, No,

I want restate I -- think question. your to

OpEx. manage managing that. continuing first the that been Again, a we question think I little in as us was as QX. can. OpEx I think Look, The falling just efficiently it's we on bit are to lower

that sort come now. the But it that, and we're want back to frame to sort and -- I'll second for this as I of level to a to come will Ira think in of to out I'll let But in well. I speak Ira. and then litigation that speak

when ultimately, year. is Regarding all resolved arguments has by the look, win and this and We still we be that had believe case. August about strong this feel done, December this this we'll extremely which said closing really litigation, of XX to in the

on So we we moving moment. extending patent could But any case XXXX. the anticipate literally to get a decision in again, and out winning the

Ira Duarte

basically Serge, timing necessarily on the expenses. baseline. and just QX, it lower a for QX of QX. but that was a see I in it It's blend OpEx yes, as in a wouldn't couple It new resulted QX did,

is not baseline going it's forward. -- So that not the new

Serge Belanger

Maybe one last one. Okay.

you As XXXX, of for can we in ASC this NOPAIN pretty coverage setting, much tailwind and HOPDs. comprehensive have think so I think a of how right now the be?

can franchise? Just And tailwind -- much of can guess, a curious it it be how ZYNRELEF for I changes? what be really the

Craig Collard

Are sorry, part missed you I'm that. of first NOPAIN? referring to I the

Serge Belanger

a The Act, of much NOPAIN how tailwind...

Craig Collard

do fact and the significant now, the I there, us. going CrossLink NOPAIN be that's NOPAIN, and about awareness. and No, look, that the Yes. we us think is And issues we've opioid I We're VAN provide about create a having longest-acting suffered talking are And help talked is so the forth. think, relief conversation in have it's and I pain think, that we're I a quite reimbursement I in Act abuse awareness being mentioned out I lot. but of tailwind. now from product going now a really significant with to tremendous going to again, with to to think think a one mean that just the we for while is fact

So big going for forward. us it we as plus a really see

Operator

question & line Brandon And next Rodman Renshaw. of from the from our Folkes comes

Brandon Folkes

I on follow-up just to the guidance. want

from terms VAN when you maybe should about lines, little of tailwind further So Or -- the referring that you about that talking those thinking how bit along Maybe begins be tailwind assuming in tailwind the XQ? to to can ZYNRELEF? should as timing? event? the in from the CINVANTI VAN about a revenue versus for the we bounce about just think XXXX elaborate then the Are just we uptake we're and XQ back sequential XQ, a you're

Craig Collard

from you. Yes. hear Brandon. Thanks, Good to

CINVANTI more than QX. in Regarding with account Again, start an no just loss -- was I'll CINVANTI.

a win begin as what accounts -- so we've been months. we then promote portfolio, other few And a we've QX. in on across to the going for product been to this and And has few able this

wasn't to it QX. a would again, we bounce an hospital in picked up and really business back revenues say, So like to in have QX. I just looked seen quarterly some prior the and uptake what But

gain really And continue can feel we that, we before. 'XX, and were so we from may into that where even

obviously, CINVANTI ASP, we've it's So sits. done about historically fairly managing which well. that's then And where

sort a if allowing for is I move in we forward. again, would will, and the price cash foundational on you CINVANTI more look with of business accounts. to side us, we're of ZYNRELEF It's acute perform think grow that We can trying cow, CINVANTI us. APONVIE. think I if But and maintain to fund we So the what too main at these do continue can to way the as

out due due not yet don't market. So have the uptick, have an moving seeing I is Van don't to an because the think of the obviously van large currently to we're But It's I to excitement upward I to mean in impact beyond. is it sort think, as 'XX to to to trend be there'll ZYNRELEF, be there, partnership. CrossLink now. I we and what really combined going and of seeing move But it an that But it. with around what is QX. some kind of QX think think into will I CrossLink is going we're see

Operator

next is of Capital follow-up from question Northland the Markets. Byrnes a Our line from Carl

Carl Byrnes

you wondering Prefilled of the can on bit update us the give Syringe. development of if a an I'm

Craig Collard

Thanks, and I'll to in it over with Forbes here room Carl. the Bill turn him. me, is

William Forbes

and made some to the along continue quarter lines. last program. the in that. we Syringe Yes, the sterilization progress with progress stability those I challenges associated great Prefilled earlier mentioned were that We've

but because we're We and ordered, of that well. machine being as moving have slight delay through had parts back a

approval us. XXXX, approval give targeting first date, gold very and going think even for the the standard. be So we going VAN way, the to at to what The we're end of it to is quarter advancement very by an overall, the program is be Prefilled because beyond expected, Syringes, progressing obviously, it's hopeful going as is XXXX. we're the

Operator

does to of This question-and-answer I'd now today's the back to like remarks. program management for the conclude program. session further any hand

Craig Collard

everyone today, to you and questions to we appreciate look everyone and next the we we for No, quarter. call, the just want forward to thank joining speaking

Operator

the for participation today's and Thank This conclude you, program. in ladies does your gentlemen, conference.

Good disconnect. day. now may You

Heron Therapeutics (HRTX) 12 Nov 242024 Q3 Earnings call transcript