HRTX - NASDAQ
Heron Therapeutics, Inc.
HRTX·NASDAQ
$0.49
+8.9%HealthcareBiotechnology
Heron Therapeutics, Inc., a biotechnology company, engages in developing treatments to address unmet patient needs. The company's product candidates utilize its proprietary Biochronomer, a drug delivery technology, which delivers therapeutic levels of a range of short-acting pharmacological agents over a period from days to weeks with a single administration. It offers SUSTOL (granisetron), an extended-release injection for the prevention of acute and delayed nausea and vomiting associated with moderately emetogenic chemotherapy, or anthracycline and cyclophosphamide combination chemotherapy regimens; and CINVANTI, an intravenous formulation of aprepitant, a substance P/neurokinin-1 receptor antagonist for the prevention of acute and delayed nausea and vomiting associated with highly emetogenic cancer chemotherapy, as well as nausea and vomiting associated with moderately emetogenic cancer chemotherapy. The company is also developing ZYNRELEF, a dual-acting local anesthetic that delivers a fixed-dose combination of the local anesthetic bupivacaine and a low dose of the nonsteroidal anti-inflammatory drug meloxicam; HTX-019, an investigational agent for the prevention of postoperative nausea and vomiting; and HTX-034 for postoperative pain management, as well as is in Phase Ib/II clinical study in patients undergoing bunionectomy. The company was formerly known as A.P. Pharma, Inc. and changed its name to Heron Therapeutics, Inc. in January 2014. Heron Therapeutics, Inc. was founded in 1983 and is headquartered in San Diego, California.
At a Glance
Live SnapshotMarket Cap$77.82M
EPS-0.1200
P/E Ratio-4.11
Earnings Date08/11/2026
Earnings Call Transcript
HRTX • 2023 • Q1
Operator
Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Heron Therapeutics Q1 2023 Earnings Conference. Before we begin, I would like to remind you that this call will contain forward-looking statements, concerning Heron's future expectations, plans, prospects, corporate strategy and performance, which constitute forward-looking statements for the purposes of the safe harbor provision under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in Heron's filings with the SEC. In addition, any forward-looking statements represent Heron's views only as of the date of this webcast and should not be relied upon, as representing Heron's views as of any subsequent date. Heron specifically disclaims any obligations to update such statements. Now, I'll turn the call over to Craig.
Craig Collard
Thank you, operator. Good afternoon, everyone, and welcome to the Heron Therapeutics First Quarter 2023 Earnings Call. I'm Craig Collard, the new CEO of Heron Therapeutics, and I'm thrilled to be leading this organization, as we continue to make headway in the hospital and oncology markets. Today, I'll provide an overview of our recent performance, highlight key achievements, but more importantly, give some insight into my assessment of the business in my first four weeks and discuss our strategic vision moving forward. Total product net revenues for the first quarter were $29.6 million, up from $23.5 million in the same quarter last year, an increase of over 26%. We continue to make steady progress on the oncology side of our business, but we remain excited about the market opportunity for both
David Szekeres
Thank you, Craig. As Craig mentioned in his remarks, our net product sales for the first quarter of 2023 were $29.6 million compared with $23.5 million in the first quarter of 2022, representing an increase of 26% over the same period in 2022. For the first quarter of 2023, our
Craig Collard
Thanks, David. Operator, we'd now like to open things up for questions, and go ahead, please.
Operator
[Operator Instructions] Our first question will come from the line of Brandon Folkes with Cantor Fitzgerald. Please go ahead.
Brandon Folkes
Hi. Thanks for taking my questions and Craig, congratulations on the appointment. Maybe just firstly from me, just how quickly do you think we can see a return on the trading of staff and then secondly, I know it's early stage and we perhaps need to be just be patient here. But any more granularities in terms of going forward and deeper into these accounts and sort of maybe some of the specifics that you think you can do to change the trajectory of
Craig Collard
Thank you, Brendan. I would -- I guess, just start by saying that, as you know, we're in cash preservation mode. And what we're really trying to do is to optimally -- have optimization of our resources. And so, regarding stock price and that type of thing, I believe that, again, with property management and beginning to see consistent quarters and growth of our product, I think, again, that should affect the stock price longer term. I think in the short-term, again, keep in mind I was not here for this quarter that, I'm speaking of. So growth of products and that type of thing and depth in the accounts and what happened this prior quarter, I can't really speak to other than just to speak to where we are. But again, getting back to -- our goal is to get this company to profitability as soon as we can. And we're going to give a lot more detail around that, and that really includes many modes in our, spend being a little bit more of a leaner organization and then really maximizing our efficiency in sales. Speaking specifically, to
Brandon Folkes
Great. Thank you very much for taking my questions.
Craig Collard
You're welcome.
Operator
Your next question will come from the line of Boris Peaker with TD Cowen. Please go ahead.
Unidentified Analyst
Hi. This is Nick on for Boris. Thanks for taking our question. Just quickly on APONVIE, how are you thinking about marketing this moving forward? I know that, you mentioned that there are a lot of similarities between like the calls that you'll make with the APONVIE and
Craig Collard
Yeah. No, it's a great question. I mean one of the things I was sort of faced with when I walked into the company was where do you put your resources? Do you continue to pour more resources towards
Unidentified Analyst
Great. Thanks for that. And space -- so for the VAN in prefilled syringe, what are the next steps to get them approved? And when do you expect this to be done for each of them?
Craig Collard
I'm sorry, did you say prefilled syringe?
Unidentified Analyst
And the VAN as well,
Craig Collard
We've got some initial time lines that I've looked at. I'm hoping that we can be a little quicker on this, but it's -- and we've done some work on the prefilled syringe. So I mean, we're sort of looking at the 26th time frame, I think, is sort of generally what I've heard, but I'm hoping we can pull that back a bit. The VAN will probably fall somewhere in between that in that time frame. So if it does work out that way, we would have the VAN coming in about 1.5 years or so and then, call it, 1.5 years after that you've had the prefilled syringe. And I think in the midst of all that as well, you've also got the expansion of the label possibly with the sNDA filing.
Unidentified Analyst
Great. Thank you very much.
Craig Collard
You’re welcome. Thank you.
Operator
Your next question will come from the line of Rohit Bhasin with Needham & Company. Please go ahead.
Rohit Bhasin
Hi. This is Rohit on for Serge. Thanks for taking our questions. For the CINV franchise, the previous management provided prior guidance of $99 million to $103 million. Does this guidance still stand? And then secondly, you mentioned reducing cash burn. Do you have any plans to pull back on the sales force? Thanks.
Craig Collard
Yes. So on the CINV franchise first, I've seen that we've given guidance in the past. And what I can tell you is I think that the CINV franchise is moving along quite nicely and is fairly steady. What I didn't like when I initially saw I just being perfectly honest, I haven't been involved in a company that gave partial guidance on partial products. So what I would prefer to do as we get our hands around this is give guidance a little more from a company standpoint and less about a particular product. So that's sort of the reason and that was my decision. But I can tell you that things are moving along fairly steadily. Regarding -- I'm trying to ink you or part of your question.
Rohit Bhasin
Yes. So you mentioned reducing cash burn. Do you have any the sales force?
Craig Collard
Yes, I'm sorry, the sales force. But we're looking at that. Again, we want to be more efficient. It may be more of a realignment. We're certainly not doing anything on the oncology side. I think on the acute side, we're just trying to really assess are we aligned in the proper accounts and what does that look like? Would we trim that a bit in the short term? It's possible, but we're really more looking at how better to align to the -- whether it's a APONVIE,
Rohit Bhasin
Great. Thank you.
Craig Collard
You’re welcome.
Operator
Your next question comes from the line of Carl Byrnes with Northland. Please go ahead.
Carl Byrnes
Thanks for the question and congratulations on the promotion. Considering the one-time
Craig Collard
Yes, Carl, it's a great question. You just said some time when you congratulated me on the promotion. I'm hoping the next quarter or quarters after this, what you say is, hey, guys, congratulations on a great quarter. That's what we're striving for. So I'd like to get that out first, I guess. Regarding gross margin, no, we're not awfully where we need to be. I would like to see us move towards under sort of a 20% COGS, which will be 80% gross margins. That's where I'd like to strive for. And I think with what we're doing batch size, why is now you're going to see some of that being reflected. I'm also looking into every manufacturing agreement we have and seeing where we can improve upon that. So ideally, I would like to get us down in sort of that, I would call it, high teens to 20% range. So we're not there yet, but it was affected obviously by this onetime write-off of
Carl Byrnes
Thanks.
Craig Collard
You’re welcome. Thank you. Operator: [Operator Instructions] Your next question comes from the line of Kelly Shi with Jefferies. Please go ahead.
Unidentified Analyst
Hi. Thanks for taking my question. This is Clara on for Kelly. So, for the same accounts you're targeting for APONVIE and
Craig Collard
Yes. No, thanks for your question. I'll start with the sNDA. I mean, again, as you know, we've filed it with the FDA, and we have a PDUFA date. But outside of that, we cannot predict what indications we will get and how broad the label will ultimately receive approval of. And so, our hope, obviously, is that it broadens and we get all the indications we ask for, but we just don't know that yet. And so, it's difficult to plan until you really know what you're going to have. So there'll be more to come on that. And really with the APONVIE and
Unidentified Analyst
Very helpful. Thank you.
Craig Collard
Okay. Thank you. You’re welcome.
Operator
I will now turn the call back over to Craig for any closing remarks.
Craig Collard
Yes, thank you, operator. First, I'd like to thank everyone, from my first call here as CEO of Heron. And I also really want to thank all the employees here. I mean change is difficult. And again, there's been a lot of things going on here, and we're putting a lot of information together. And I think what you're going to see in the future is a much, much different company that, again, will head towards profitability and will be a success. And so I'm excited about that. And again, I just want to thank everyone here, that's being a part of that thus far. And we'll see you next quarter.
Transcript from May 11, 2023
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