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Jun 30, 2022
Heron Therapeutics Q2 2022 Earnings Report
Heron Therapeutics' Q2 2022 earnings reflect strong growth in both business units, with ZYNRELEF net product sales increasing by 140% compared to Q1 and oncology care franchise net product sales growing by 12% over the prior quarter.
Key Takeaways
Heron Therapeutics reported a net product sales increase to $27.6 million for Q2 2022, driven by a 140% increase in ZYNRELEF sales compared to Q1 and a 12% growth in oncology care franchise sales. The company is implementing a restructuring and cost reduction plan expected to reduce annual operating expenses by over $50 million in 2023. With recent private placement proceeds, Heron's pro-forma cash at the end of Q2 was $158.7 million, projected to provide a cash runway through 2024.
ZYNRELEF launch continues with a 140% sequential quarterly product sales increase and a 47% unit demand increase.
Oncology Care Franchise net product sales grew 12% over the prior quarter to $25.1 million.
Full-year 2022 net product sales guidance for the Oncology Care Franchise increased to $93 million to $95 million.
Restructuring and cost reduction activities are projected to achieve over $50 million in reductions in annual operating expense in 2023.
Revenue by Segment
Forward Guidance
Heron expects continued momentum in the second half of the year as more hospitals switch to ZYNRELEF and anticipates large-scale manufacturing of CINVANTI coming on-line later this year, which is expected to substantially improve margins and drive greater profitability of the oncology care franchise.
Positive Outlook
- Continued momentum expected in the second half of the year as more hospitals switch to ZYNRELEF.
- Large-scale manufacturing of CINVANTI coming on-line later this year.
- Substantial improvement in margins and greater profitability of the oncology care franchise expected.
- CINVANTI has the opportunity for continued growth through 2023 due to recent changes in CMS reimbursement.
- Interactions with the FDA regarding the pending NDA for HTX-019 for PONV remain on track.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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