Loading...
Heron Therapeutics Q1 2025 Earnings Report
Heron Therapeutics reported a net income for Q1 2025, a significant improvement from a net loss in the prior year, driven by increased acute care product sales and reduced operating expenses.
Key Takeaways
Heron Therapeutics, Inc. reported a net income of $2.635 million for the three months ended March 31, 2025, a substantial improvement compared to a net loss of $3.160 million in the same period last year. This positive shift was primarily driven by an 89.4% increase in acute care net product sales, particularly ZYNRELEF and APONVIE, and a decrease in research and development and general and administrative expenses.
Net product sales increased to $38.903 million in Q1 2025 from $34.670 million in Q1 2024, representing a 12.2% growth.
The company achieved a gross profit of $30.446 million, up from $26.226 million in the prior year, with gross profit margin improving to 78.3%.
Research and development expenses decreased significantly by 50.5% to $2.279 million, contributing to the improved net income.
Acute care net product sales surged by 89.4%, primarily due to increased unit sales and new customers for ZYNRELEF and APONVIE.
Heron Therapeutics
Heron Therapeutics
Heron Therapeutics Revenue by Segment
Heron Therapeutics Revenue by Geographic Location
Revenue by Segment
CINVANTI Revenue
CapyFin.comSUSTOL Revenue
CapyFin.comZYNRELEF Revenue
CapyFin.comAPONVIE Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Heron Therapeutics anticipates that its current cash, cash equivalents, and short-term investments will be sufficient to meet anticipated cash requirements for at least the next twelve months. However, additional financing will be required to repay the $150.0 million Senior Convertible Notes due in May 2026.
Positive Outlook
- Management believes current liquidity is sufficient for the next twelve months.
- The company is actively pursuing various financing options, including debt financing, equity offerings, and collaborations.
- Successful commercialization and market acceptance of ZYNRELEF, APONVIE, CINVANTI, and SUSTOL are expected to drive future revenue.
- Potential additional market opportunity from expanded ZYNRELEF label.
- Ability to establish satisfactory pricing and obtain adequate reimbursement for products.
Challenges Ahead
- Current financing sources are not sufficient to repay the $150.0 million Senior Convertible Notes due in May 2026.
- Issuance of additional equity securities or convertible debt could dilute existing stockholders' investments.
- Negative global economic conditions and market disruptions could adversely impact the ability to raise additional funds.
- Failure to acquire additional funding at favorable terms could lead to default on indebtedness or reduction of development programs.
- Market competition is expected to continue impacting oncology net product sales through 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income