Heron Therapeutics, Inc. · NASDAQ:HRTX
Heron Therapeutics — Q2 2022 Earnings Presentation
25 slides from Heron Therapeutics's earnings presentation, August 2022
Slide 1: Heron Update Q2 2022 Earnings Call
Heron Update Q2 2022 Earnings Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. We caution investors that forward-looking statements are based on management’s expectations and assumptions as of the date of this presentation, and
Slide 3: Heron Pipeline
Heron Pipeline PRECLINICAL CLINICAL NDA APPROVED SUSTOL® Oncology Care (granisetron) US FDA Approved for CINV Prevention* extended-release injection CINVANTI® (aprepitant) US FDA Approved for CINV Prevention* injectable emulsion ZYNRELEF® (bupivacaine and meloxicam) US FDA Approved for postsurgical
Slide 4: Enrollment Completed in Clinical Studies Needed for sNDA #2 to Obtain Broadest Label
Enrollment Completed in Clinical Studies Needed for sNDA #2 to Obtain Broadest Label • Study 220 C-section • AMAZE Study: – Abdominoplasty – Total Shoulder Arthroplasty • Study 221 Spine sNDA #2 planned for year-end 4 Please see IMPORTANT SAFETY INFORMATION on pages 24 and 25 and accompanying full P
Slide 5: ZYNRELEF Commercial Update
ZYNRELEF ° Commercial Update “6 \ > -« NS ™ _ N _—. ont \ } THERAPEUTICS.
Slide 6: ZYNRELEF Inventory at Distribution Centers has Stabilized
ZYNRELEF Inventory at Distribution Centers has Stabilized Q2’22 Net Sales: $2.5 million 140% increase over prior quarter Currently expect Q3’22 net sales increase of 40% to 50% vs. Q2’22 ZYNRELEF Ex-Factory reorders have stabilized at demand Ex-Factory Reorder % of Demand Units Q3 QTD SKU Dosage Q4
Slide 7: ZYNRELEF is Rapidly Increasing Quarterly Demand Volume
ZYNRELEF is Rapidly Increasing Quarterly Demand Volume Grew demand unit sales by 47% from Q1 22 to Q2 22 Q3’21 Q4’21 Q1’22 Q2’22 +47% Weekly 12,773 Average 176 398 667 983 400MG 200MG 8,673 8,403 5,176 6,494 2,288 4,117 4,370 1,643 2,179 645 1,059 2021-Q3 2021-Q4 2022-Q1 2022-Q2 ZYNRELEF data throug
Slide 8: Continued Strong Progress Across All ZYNRELEF Launch Metrics
Continued Strong Progress Across All ZYNRELEF Launch Metrics Q3'21 Earnings Call Q4'21 Earnings Call Q1'22 Earnings Call Q2'22 Earnings Call Account Growth Sept 30, 2021 Dec 31, 2021 Mar 31, 2022 June 30, 2022 Unique Ordering Accounts 160 309 451 602 Average per Month 53 52 50 50 % Reorder Rate 50%
Slide 9: ZYNRELEF New Ordering Accounts Growth Continues
ZYNRELEF New Ordering Accounts Growth Continues 602 unique accounts ordered ZYNRELEF (July 2021 – June 2022) +33% increase in unique accounts ordering ZYNRELEF from Q1’22 to Q2’22 Unique Ordering Accounts* Reordering Account Rate* 12 Months Post Launch 12 Months Post Launch 775 84% 79% 602 71% 44% 7
Slide 10: ZYNRELEF Continues to Gain Rapid Formulary Approvals
ZYNRELEF Continues to Gain Rapid Formulary Approvals ZYNRELEF formulary approvals: 384 as of July 31, 2022 P&T Committee approval rate > 90% in hospitals Formulary Approval Status Estimated % of Approvals Unrestricted Usage 68% Restricted (Primarily for Trial Evaluations) 32% > 80 additional P&T Com
Slide 11: Targeting IDNs – Top-Down Strategy is Creating New Opportunities
Targeting IDNs – Top-Down Strategy is Creating New Opportunities for Therapeutic Interchange 57 IDNs have added ZYNRELEF as formulary approved product Unrestricted Restricted 33% 67% 57 IDNs represent ~ potential opportunity of $200M** in annual ZYNRELEF net sales based on currently indicated surgic
Slide 12: Therapeutic Interchange: Opportunity to Accelerate Growth
Therapeutic Interchange: Opportunity to Accelerate Growth 15 IDNs have expressed interest in Therapeutic Interchange (TI) with ZYNRELEF for indicated procedures Indicated Exparel WAC # of Hospitals # of ASC Procedures 363,197 ~ $42 million 234 169 In all cases pharmacy is supportive and helping driv
Slide 13: ZYNRELEF Branded Share is Growing in IDNs
ZYNRELEF Branded Share is Growing in IDNs In 15 IDNs evaluating TI - ZYNRELEF units have grown ~ 290% in since label expansion (1st half 2022 vs. 2nd half 2021) Approved IDN - ZYNRELEF Branded Mkt Sh (ZYNRELEF + Exparel Units) Exparel 12M Category Q3'21 Q4'21 Q1'22 Q2'22 WAC* 57 IDNs 0.8% 2.1% 3.8%
Slide 14: ZYNRELEF is the Only Reimbursed Local Anesthetic in Hospital Outpatient
ZYNRELEF is the Only Reimbursed Local Anesthetic in Hospital Outpatient, the Largest Setting of Care Effective April 1, 2022 - ZYNRELEF is separately reimbursed for Medicare patients in the Hospital Outpatient setting of care 72% of indicated procedures were performed in outpatient settings in 2021
Slide 15: ZYNRELEF’s Significant Economic & Reimbursement Benefits
ZYNRELEF’s Significant Economic & Reimbursement Benefits ZYNRELEF Savings vs Exparel ZYNRELEF WAC 340B Exparel WAC 340B WAC 340B WAC % 340B % $/unit $/unit 400 mg/12 mg $267.50 $205.17 266 mg (20 mL) $354.53 $354.53 ~ $87 25% ~$149 42% 200 mg/6 mg $135.50 $104.05 133 mg (10 mL) $198.84 $198.84 ~ $63
Slide 16: ZYNRELEF Priorities 2022
ZYNRELEF Priorities 2022 Leverage new label indication for faster growth Build consistent usage in formulary approved ordering accounts and increase average order size – expand number of surgeons using ZYNRELEF Continue to gain formulary access to new IDNs and Hospitals to build pipeline Maximize Pa
Slide 17: Oncology Care Franchise
Oncology Care Franchise s ¥ ‘. = SSERON THERAPEUTICS’
Slide 18: Heron’s CINV Net Sales Grew by 12% over Prior Quarter
Heron’s CINV Net Sales Grew by 12% over Prior Quarter CINVANTI SUSTOL $25.4M CINV portfolio net sales by quarter $25.1M $22.7M $22.4M $22.4M $20.6M $21.2M $20.0M $20.0M $19.8M $22.7M $25.2M $19.7M $18.0M $20.3M $22.6M $17.3M $20.3M $18.5M $19.8M $2.8M $3.1M $2.5M $2.4M $1.5M $2.1M $0.2M $0.1M $0.1M
Slide 19: CINVANTI – Hospital Segment: Units Remain Strong
CINVANTI – Hospital Segment: Units Remain Strong Despite Significantly Lower Acquisition Cost of Generic Fosaprepitant 130K Hospital Share Hospital Units 120K +11% 120K 113K 110K 104K 101K 98K 99K 98K 100K 96K 94K 97K 93K 88K 91K 90K 43% 80K 40% 37% Pack Units 70K 67K 34% 35% 33% 33% 32% 31% 31% 31%
Slide 20: CINVANTI – Clinic Units Return To Growth in 2022
CINVANTI – Clinic Units Return To Growth in 2022 with End of Generic Abitrage 100K 95K Clinic Share Clinic Units 93K 90K 90K 86K 85K 80K 77K 75K 71K 70K +10% 65K 61K 60K 57K Pack Units 55K 52K 52K 50K 47K 45K 44K 42K 40K 39K 38K 39K 39K 40K 35K 30K 52% 54% 53% 25K 22K 45% 43% 20K 36% 15K 30% 29% 27%
Slide 21: CINV Franchise 2022 Outlook
CINV Franchise 2022 Outlook • Continued improving reimbursement tailwinds over the past year Q3 2021 Q3 2022 Product J Code ASP+6% ASP+4.3% $ Change % Change Fosaprepitant J1453 $ 49.80 $ 27.01 $ (22.79) -45.76% CINVANTI J0185 $ 209.56 $ 220.01 $ 10.45 4.99% Palonosetron J2469 $ 19.00 $ 8.90 $ (10.1
Slide 22: Financial Summary
Financial Summary Heron had cash, cash equivalents and short-term investments of $83.5 million as of June 30, 2022. Adjusting for net proceeds of $75.2 million from our August 2022 private placement, Heron had cash, cash equivalents and short-term investments of $158.7 million. Summary Statement of
Slide 23: Key Catalysts in Pain Management & CINV Franchises
Key Catalysts in Pain Management & CINV Franchises ZYNRELEF® CINVANTI ® and SUSTOL® for CINV ✓ ZYNRELEF unit demand increased 47% in the ✓ Net product sales in Q1 2022 increased by second quarter compared to the prior quarter 13% compared to prior quarter ✓ Q2 2022 net sales guidance for CINV ✓ Pass
Slide 24: Important Safety Information for Patients
Important Safety Information for Patients Important Safety Information ZYNRELEF contains an NSAID (non-steroidal anti-inflammatory drug), a type of medicine which: • can increase the risk of a heart attack or stroke that can lead to death. This risk increases with higher doses and longer use of an N
Slide 25: Important Safety Information for Patients (cont)
Important Safety Information for Patients (cont) The most common side effects of ZYNRELEF are constipation, vomiting, and headache. The medicines in ZYNRELEF (a local anesthetic and an NSAID) can affect the nervous and cardiovascular system; may reduce the effects of some blood pressure medications;