Heron Therapeutics Inc (HRTX) Exceeds Full-Year Revenue Guidance for 2023
Oncology Care Franchise Revenue: Surpassed full-year 2023 guidance with $107.9 million.
ZYNRELEF Net Product Sales: Achieved a quarterly record with $5.6 million in Q4.
Financial Position: Ended 2023 with $80.4 million in cash and cash equivalents.
Partnership and FDA Approval: Announced a partnership with CrossLink Life Sciences and received FDA approval for expanded indication of ZYNRELEF.
Financial Guidance for 2024: Reaffirmed with net product revenues projected between $138.0 to $158.0 million.
Gross Margin Improvement: Increased to 71% for the quarter, up from 58% in the same period last year.
On March 12, 2024, Heron Therapeutics Inc (NASDAQ:HRTX) released its 8-K filing, announcing its fourth quarter and full-year 2023 financial results, along with recent corporate updates. Heron Therapeutics, a commercial-stage biotechnology company, is dedicated to developing treatments that address unmet patient needs, with a product portfolio that includes SUSTOL, ZYNRELEF, CINVANTI, and the pipeline product HTX-011.
The company's oncology care franchise revenue for 2023 was $107.9 million, exceeding the full-year guidance. ZYNRELEF, one of the company's key products, achieved a quarterly record of $5.6 million in net product sales. Heron Therapeutics ended the year with a solid financial position, having cash and cash equivalents of $80.4 million.
CEO Craig Collard expressed satisfaction with the company's performance, attributing the positive momentum to strategic decisions that have set the company on a path towards long-term success and profitability. The company's partnership with CrossLink Life Sciences, LLC, announced on January 7, 2024, is expected to significantly expand ZYNRELEF's promotional efforts, providing up to 650 additional sales representatives targeting orthopedic surgeons.
Furthermore, the FDA approval for an expanded indication of ZYNRELEF on January 23, 2024, has broadened the potential market for the drug to approximately 13 million procedures annually. The company's gross margin improved significantly to 71% for the quarter, up from 58% in the same period last year, reflecting a more efficient cost structure and enhanced profitability.
The acute care franchise also showed strong performance, with net product sales increasing to $19.1 million in 2023 from $10.2 million in 2022. The oncology care franchise continued to be a strong contributor, with net product sales of $107.9 million in 2023, up from $97.5 million in 2022.
For 2024, Heron Therapeutics has reaffirmed its financial guidance, with net product revenues expected to be between $138.0 to $158.0 million, adjusted operating expenses projected at $108.0 to $116.0 million, and adjusted EBITDA ranging from a loss of $22.0 million to a gain of $3.0 million.
The company's financial achievements, particularly in the biotechnology industry, underscore its ability to innovate and successfully commercialize its products, which is critical for generating sustainable revenue and moving towards profitability.
Heron Therapeutics will host a conference call and webcast to discuss these results and updates, providing an opportunity for investors and analysts to gain further insights into the company's performance and future prospects.
Investors and value seekers are encouraged to review the detailed financial results and operational highlights provided by Heron Therapeutics, as the company continues to navigate the competitive biotechnology landscape with a focus on delivering value to both patients and shareholders.
For more detailed information, please refer to the full 8-K filing.
Investor Relations and Media Contact:Ira DuarteExecutive Vice President, Chief Financial OfficerHeron Therapeutics, Inc.iduarte@herontx.com858-251-4400
Explore the complete 8-K earnings release (here) from Heron Therapeutics Inc for further details.
This article first appeared on GuruFocus.
