The following is a summary of the Heron Therapeutics, Inc. (HRTX) Q1 2024 Earnings Call Transcript:
Financial Performance:
Heron Therapeutics Q1 net revenue was $34.6 million, up from $29.6 million year-over-year.
Gross margin improved significantly from 43% to 76%.
The company decreased its loss from $33 million in Q1 2023 to $4.8 million in Q1 2024.
The company reported individual product revenues with CINVANTI at $25.6 million, SUSTOL at $3.6 million, ZYNRELEF at $5 million, and APONVIE at $500,000.
Heron anticipates to achieve profitability by Q4 2024.
Business Progress:
Heron Therapeutics signed the CrossLink agreement and received approval for the expanded indication of ZYNRELEF.
A national sales meeting has already trained staff on the impending new indications for the products.
The company observed a positive reception of APONVIE, which will likely contribute to net revenue growth.
CrossLink partnership training has been initiated and 216 representatives have been trained so far, with plans to reach 650 by the end of the year.
Ongoing research aims to make ZYNRELEF more accessible and the company is expecting VAN approval by Q4 2024 and PFS approval by Q4 2026.
Heron reaffirmed its revenue guidance of $138 million to $158 million for 2024 with improved gross margins within the range of 60% to 70%.
Passage and implementation of the No Pain Act is expected to provide reimbursement for outpatient procedures and ASCs starting Q1 2025.
Heron expects ZYNRELEF will secure pass-through status under the No Pain Act without gaps, even as the current pass-through status expires Q1 2025.
External support and the ongoing opioid crisis indicate the potential for the No Pain Act to extend beyond 2027, offering great promise for non-opioids like ZYNRELEF.
More details: Heron Therapeutics IR
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