Heron Therapeutics, Inc. · NASDAQ:HRTX
Heron Therapeutics — Q1 2022 Earnings Presentation
22 slides from Heron Therapeutics's earnings presentation, 2022
Slide 1: Heron Update Q1 2022 Earnings Call
Heron Update Q1 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® (granisetron) US FDA Approved for CINV Prevention* Oncology Care extended-release injection CINVANTI® (aprepitant) US FDA Approved for CINV Prevention* injectable emulsion ZYNRELEF® (bupivacaine and meloxicam) US FDA Approved for postsurgical
Slide 4: ZYNRELEF Commercial Update Q1 2022
ZYNRELEF Commercial Update Q1 2022 Earnings Call
Slide 5: Launch Progress Summary
ZYNRELEF Launch Progress Summary Q3'21 Earnings Call Q4'21 Earnings Call Q1'22 Earnings Call Account Growth Sept 30, 2021 Dec 31, 2021 Mar 31, 2022 Unique Ordering Accounts 160 309 451 Average per Month 53 52 50 % Reorder Rate 50% 73% 80% Q3'21 Earnings Call Q4'21 Earnings Call Q1'22 Earnings Call P
Slide 6: New Ordering Accounts Growth Continues
ZYNRELEF New Ordering Accounts Growth Continues 451 unique accounts ordered ZYNRELEF (July 2021 – March 2022) +46% increase in unique accounts ordering ZYNRELEF from Q4’21 to Q1’22 QTD Unique Ordering Accounts* Reordering Account Rate* 9 Months Post Launch 9 Months Post Launch 561 80% 451 63% 61% 44
Slide 7: ZYNRELEF is Rapidly Increasing Quarterly Demand Volume
ZYNRELEF is Rapidly Increasing Quarterly Demand Volume 512 unique ordering accounts during first 10 months of launch (July 2021 to April 2022) Grew demand unit sales +68% from Q4 21 to Q1 22 400mg SKU represents 74% of demand since launch +68% 400MG 400MG 200MG 8,673 200MG 3,680 3,807 FDA Label Expa
Slide 8: Performance during Spring Break
ZYNRELEF Performance during Spring Break Rolling 5-Week Comparison Ending April 15, 2022 Total Sales Hospital Sales ASC Sales ZYNRELEF Demand Units +12% +15% +7% Exparel -3% -3% -2% Demand Units Exparel – Symphony Healthcare Weekly Data Source ZYNRELEF – 867 Data Source / WAC 200: $135.50 400: $267.
Slide 9: Meaningful Progress Burning through Initial DC Inventory
Meaningful Progress Burning through Initial DC* Inventory Q1’22 Net Sales: $1.1 million Q1 Net Sales reflect $0.3M return of short-dated product and continue progress reducing the initial stocking inventory based on demand orders Q1’22 Ex-Factory Reorder Rate through 3/31/2022: 92% of ZYNRELEF 400mg
Slide 10: ZYNRELEF Continues to Gain Rapid Formulary Approvals
ZYNRELEF Continues to Gain Rapid Formulary Approvals ZYNRELEF formulary approvals: 319 as of April 30, 2022 P&T Committee approval rate > 90% in hospitals Formulary Approval Status Estimated % of Approvals Unrestricted Usage 68% Restricted (Primarily for Indicated Procedures) 32% ~ 60 additional P&T
Slide 11: Targeting IDNs – Top Down Strategy Creating New Opportunities
Targeting IDNs – Top Down Strategy is Creating New Opportunities for Therapeutic Interchange 46 IDNs have added ZYNRELEF as formulary approved product Represent 576 hospitals and 575 ASCs – many hospitals still require formulary approval 41% unrestricted / 59% restricted formulary approvals 46 IDNs
Slide 12: Therapeutic Interchange: Opportunity to Accelerate Growth
Therapeutic Interchange: Opportunity to Accelerate Growth 13 IDNs have expressed interest in Therapeutic Interchange (TI) with ZYNRELEF for indicated procedures Target Indicated Exparel WAC # of Hospitals # of ASCs Procedures Procedures 599,212 ~ $40 million 322,396 205 159 In all cases pharmacy is
Slide 13: 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 14: ZYNRELEF's Significant Economic Benefits Supporting Share Conversion
ZYNRELEF’s Significant Economic Benefits Designed to Support Rapid Share Conversion and Broad Access ZYNRELEF Savings vs Exparel WAC $/unit WAC % 340B $/unit 340B % ~ $87 25% ~$149 42% ~ $63 32% ~$95 48% Medicare NCR By Site of Care* NCR 340B NCR HOPD ASC ZYNRELEF 400 mg/12 mg $74.64 $12.50 $12.50 E
Slide 15: 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 16: Oncology Care Franchise Q1'22 Review
Oncology Care Franchise Q1’22 Review
Slide 17: Heron's CINV Net Sales Grew by 13% over Prior Quarter
Heron’s CINV Net Sales Grew by 13% over Prior Quarter • Q2 2022 CINV Net Sales Guidance in range of $22M to $23M CINVANTI SUSTOL $25.4M CINV portfolio net sales by quarter $22.7M $22.4M $22.4M $20.6M $21.2M $20.0M $20.0M $19.8M $25.2M $19.7M $18.0M $20.3M $22.6M $17.3M $20.3M $18.5M $19.8M $2.8M $3.
Slide 18: CINV Franchise 2022 Outlook
CINV Franchise 2022 Outlook • Sales for CINVANTI and SUSTOL are poised for growth in 2022 based on improving reimbursement tailwinds – Generic fosaprepitant ASP reimbursement decreased to $26.35 in Q2’22 (decrease of 49% from Q2’21) – Effective January 1, 2022 – separate reimbursement for generic fo
Slide 19: Financial Summary
Financial Summary Heron had cash, cash equivalents and short-term investments of $111.9 million as of March 31, 2022. We expect net cash used for operating activities of $37 million to $39 million in the second quarter of 2022. Summary Statement of Operations and Net Cash Used in Operations Three Mo
Slide 20: Key Catalysts in Pain Management & CINV Franchises
Key Catalysts in Pain Management & CINV Franchises ZYNRELEF® CINVANTI ® and SUSTOL® for CINV ZYNRELEF unit demand increased 68% in the first Net product sales in Q1 2022 increased by quarter compared to the prior quarter 13% compared to prior quarter • Q2 2022 net sales guidance for CINV Pass-
Slide 21: 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 22: 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;