Heron Therapeutics, Inc. · NASDAQ:HRTX

Heron Therapeutics — Corporate Update (January 2019)

71 slides from Heron Therapeutics's corporate update, Jan 7, 2019

  1. Slide 1: Corporate Update

    Corporate Update January 7, 2019

  2. 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

  3. Slide 3: Heron Pipeline

    Heron Pipeline We are currently developing and commercializing pharmaceutical products for patients suffering from cancer or postoperative pain: PRECLINICAL CLINICAL NDA APPROVED SUSTOL® (granisetron) US FDA Approved for CINV Prevention* extended-release injection CINV* CINVANTI® (aprepitant) US FDA

  4. Slide 4: HTX-011 NDA for Postoperative Pain Management Has Received Priority Review

    HTX-011 NDA for Postoperative Pain Management Has Received Priority Review • FDA granted Priority Review to HTX-011 NDA with a PDUFA goal date of April 30, 2019 • HTX-011 received Fast Track designation in 4Q 2017 and Breakthrough Therapy designation in 2Q 2018 – Fast Track and Breakthrough Therapy

  5. Slide 5: Postoperative Pain and its Impact on the Opioid Crisis

    Postoperative Pain and its Impact on the Opioid Crisis

  6. Slide 6: The Cost of Opioids

    The Cost of Opioids How Postoperative Opioids Can Be a Doorway to Addiction As many as Of these 2.6 million persistent opioid MORE THAN 50 MILLION 6.5% users, approximately surgical procedures happen of patients who take in the United States.1 opioids to manage pain ~500,000 90% after surgery may be

  7. Slide 7: Heron's Goals For Postoperative Pain Program

    Heron’s Goals For Postoperative Pain Program • Our philosophy is that: 1. Opioids play an important role for reduction of severe pain, but should be used as a last resort, rather than the first step in pain management 2. Reduction in the use of opioids should not come at the cost of patients experie

  8. Slide 8: HTX-011 Mechanism of Action

    HTX-011 ? Mechanism of ‘*% Action ae N = HERON \ THERAPEUTICS.

  9. Slide 9: A Potential Hypothesis: Inflammation, pH, and Local Anesthetic Failure

    A Potential Hypothesis: Inflammation, pH, and Local Anesthetic Failure Local Anesthetics Exist in a Balance Between Water- and Lipid-Soluble Forms Inflammation produces an acidic environment With a one pH unit drop, 10-fold less bupivacaine is able to penetrate the nerve cell membrane • With a pKa o

  10. Slide 10: HTX-011 Designed to Produce Marked Analgesia Through 72 Hours

    HTX-011 is Designed to Produce Marked Analgesia Through the First 72 Hours After Surgery as Demonstrated in this Preclinical Model1 Saline Control Liposomal Bupivacaine 2 Biochronomer ER Bupivacaine Biochronomer ER Meloxicam HTX-011 (Biochronomer Bupivacaine + Meloxicam with 3-day release) Percentag

  11. Slide 11: HTX-011 Reduces Pain Better Than the Individual Components

    HTX-011 Reduces Pain Better Than the Individual Components in Both Bunionectomy and Herniorrhaphy Phase 2 Studies p=0.0154 vs. HTX-002* p<0.0001 vs. HTX-009* p=0.0208 vs. HTX-002* p=0.0005 vs. HTX-009* p=0.0333 vs. HTX-002* p=0.0090 vs. HTX-009* p=0.2041 vs. HTX-002* p<0.0035 vs. HTX-009* p=0.0592 v

  12. Slide 12: HTX-011 is Applied into the Surgical Site Without a Needle

    HTX-011 is Applied into the Surgical Site at the End of Surgery Without a Needle HTX-011 is a single-dose application administered via a needle-free syringe to directly coat the affected tissue within the surgical site prior to suturing Reference: Data on file. 12

  13. Slide 13: Seven Active-Controlled Studies Included in NDA

    Seven Active-Controlled Studies Showing Significantly Better Pain Reduction With HTX-011 Than Bupivacaine Included in NDA Significant for Significant for Significant Tissue Pain Study Phase Surgical Model Pain Reduction Reduction in Type Reduction vs. vs. PBO Opioid Use BPV 202 2 Herniorrhaphy Soft

  14. Slide 14: HTX-011 Clinical Development: EPOCH 1 Bunionectomy Results

    HTX-011 Clinical Development EPOCH 1: Bunionectomy Results (Study 301)

  15. Slide 15: EPOCH 1 Bunionectomy: Study Design

    EPOCH 1 (Study 301) Bunionectomy: Study Design • N = 412 (3:2:3 to HTX-011 60 mg, saline placebo, or bupivacaine HCl 50 mg) • 438 subjects were randomized and 412 were dosed (ITT Population) • 13 sites in the United States Screening Period Inpatient Period Outpatient Follow-up Period Randomization P

  16. Slide 16: EPOCH 1 Bunionectomy: Results Hierarchy

    EPOCH 1 Bunionectomy: Results Hierarchy Primary: AUC0-72 HTX-011 vs. PBO p < 0.0001 1st Key Secondary: AUC0-72 HTX-011 vs. BPV p = 0.0002 2nd Key Secondary: Opioid Consumption HTX-011 vs. PBO p < 0.0001 3rd Key Secondary: Opioid-Free HTX-011 vs. BPV p = 0.0001 (Opioid-Free vs. PBO: p < 0.0001) 4th K

  17. Slide 17: EPOCH 1 Bunionectomy: Mean Pain Intensity

    EPOCH 1 Bunionectomy: Mean Pain Intensity wWOCF – window worst observation 17 Source: Figure 14.2.7 carried forward HTX-011 is an investigational new drug and not approved by the FDA

  18. Slide 18: EPOCH 1 Bunionectomy: Percentage of Subjects Opioid-Free

    EPOCH 1 Bunionectomy: Percentage of Subjects Who Are Opioid-Free Through 72 hours and Through Days 10 and 28 Percent of Patients With Severe Key Pain at Any Time Through 72 hours Secondary HTX-011 53.5% Endpoint 83.0% Saline Placebo p<0.0001 75.5% Bupivacaine p<0.0001 18 HTX-011 is an investigationa

  19. Slide 19: EPOCH 1 Bunionectomy: Lowest Rate of Opioid-Related Adverse Events

    EPOCH 1 Bunionectomy: HTX-011 Opioid-Free Subjects Have the Lowest Rate of Opioid-Related Adverse Events (ORAEs) Opioid consumption is measured in milligram morphine equivalents (MME) N for each bar: 19 HTX-011 is an investigational new drug and not approved by the FDA

  20. Slide 20: EPOCH 1 Bunionectomy: Benefit – Risk for HTX-011

    EPOCH 1 Bunionectomy: Benefit – Risk for HTX-011 ← Favors Active Favors Placebo → 20 HTX-011 is an investigational new drug and not approved by the FDA

  21. Slide 21: HTX-011 Clinical Development: EPOCH 2 Herniorrhaphy Results

    HTX-011 Clinical Development EPOCH 2: Herniorrhaphy Results (Study 302)

  22. Slide 22: EPOCH 2 Herniorrhaphy: Study Design

    EPOCH 2 (Study 302) Herniorrhaphy: Study Design • N= 418 (2:1:2 to HTX-011 300 mg, saline placebo, or bupivacaine HCl 75 mg) • 446 subjects were randomized and 418 were dosed (ITT Population) • 17 sites in 2 countries (United States, Belgium) Screening Period Inpatient Period Outpatient Follow-up Pe

  23. Slide 23: EPOCH 2 Herniorrhaphy: Results Hierarchy

    EPOCH 2 Herniorrhaphy: Results Hierarchy Primary: AUC0-72 HTX-011 vs. PBO p = 0.0004 1st Key Secondary: AUC0-72 HTX-011 vs. BPV p < 0.0001 2nd Key Secondary: Opioid Consumption HTX-011 vs. PBO p = 0.0001 3rd Key Secondary: Opioid-Free HTX-011 vs. BPV p = 0.0486 (Opioid-Free vs. PBO: p < 0.0001) 4th

  24. Slide 24: EPOCH 2 Herniorrhaphy: Mean Pain Intensity

    EPOCH 2 Herniorrhaphy: Mean Pain Intensity 24 Source: Figure 14.2.7 HTX-011 is an investigational new drug and not approved by the FDA

  25. Slide 25: EPOCH 2 Herniorrhaphy: Percentage of Subjects Opioid-Free Through Day 28

    EPOCH 2 Herniorrhaphy: Percentage of Subjects Who Are Opioid-Free Through Day 28 Percent of Patients With Severe Key Pain at Any Time Through 72 hours Secondary HTX-011 48.8% Endpoint 81.7% Saline Placebo p<0.0001 60.5% Bupivacaine p=0.0372 25 HTX-011 is an investigational new drug and not approved

  26. Slide 26: EPOCH 2 Herniorrhaphy: Lowest Rate of Opioid-Related Adverse Events

    EPOCH 2 Herniorrhaphy: HTX-011 Opioid-Free Subjects Have the Lowest Rate of Opioid-Related Adverse Events (ORAEs) Opioid consumption is measured in milligram morphine equivalents (MME) N for each bar: 26 HTX-011 is an investigational new drug and not approved by the FDA

  27. Slide 27: EPOCH 2 Herniorrhaphy: Benefit – Risk for HTX-011

    EPOCH 2 Herniorrhaphy: Benefit – Risk for HTX-011 ← Favors Active Favors Placebo → 27 HTX-011 is an investigational new drug and not approved by the FDA

  28. Slide 28: HTX-011 Clinical Development: Phase 2b TKA Study (Study 209)

    HTX-011 Clinical Development Phase 2b Total Knee Arthroplasty (TKA) Study (Study 209)

  29. Slide 29: Study 209 Phase 2b: Total Knee Arthroplasty

    Study 209 Phase 2b: Total Knee Arthroplasty HTX-011 400 mg Instillation • Pre-op Medication: acetaminophen (IV) 1 g, N = 58 pregabalin (oral) 150 mg HTX-011 400 mg Instillation, plus ropivacaine • HTX-011 Administration Technique: needle-free 50 mg injected to posterior capsule instillation of 100 m

  30. Slide 30: Study 209 TKA: Results Hierarchy

    Study 209 TKA: Results Hierarchy HTX-011 via instillation achieved primary and key secondary endpoints for reduction in pain intensity scores at rest (NRS-R) AUC0-48 HTX-011 400 mg + Ropivacaine vs. Placebo p < 0.0001 AUC0-48 HTX-011 400 mg vs. Placebo p = 0.0002 AUC0-72 HTX-011 400 mg+ Ropivacaine

  31. Slide 31: Study 209 TKA: Significant Separation Between HTX-011 Arms and Placebo

    Study 209 TKA: Significant Separation between HTX-011 Arms and Placebo through 72 Hours (Primary Endpoint) wWOCF for use of opioid rescue medication and LOCF for missing pain data 31 HTX-011 is an investigational new drug and not approved by the FDA

  32. Slide 32: Study 209 TKA: HTX-011 Superior to Placebo and Bupivacaine Through 72 Hours

    Study 209 TKA: HTX-011 Significantly Superior to Both Placebo and Bupivacaine Through 72 Hours Without Adjusting for Opioid Use Notes: Pain intensity collected at rest LOCF for missing data and no adjustment for use of opioid rescue medication 32

  33. Slide 33: Study 209 TKA: HTX-011 Reduces Opioid Use Through 72 Hours

    Study 209 TKA: HTX-011 Reduces Opioid Use through 72 Hours Opioid consumption is measured in milligram morphine equivalents (MME) Source: Figure 14.2.2.2 33 HTX-011 is an investigational new drug and not approved by the FDA

  34. Slide 34: Study 209 TKA: Increase in Patients Achieving Discharge Ready Criteria

    Study 209 TKA: Significant Increase Compared to Placebo in Patients Achieving “Discharge Ready” MPADDS Criteria* with HTX-011 100% p-value vs PBO: 0.007 0.003 0.022 0.001 0.077 0.010 P-value vs BPV: 0.347 0.185 0.348 0.055 0.243 0.068 80% 60% 40% 20% 0% 0-8 0 - 12 0 - 24 Saline Placebo Bupivacaine H

  35. Slide 35: Safety Summary

    Safety Summary HTX-011 was generally well tolerated across all Phase 2 and Phase 3 studies with no clinically meaningful differences in: • Overall adverse events • The incidence of serious adverse events • Premature discontinuations due to adverse events • Potential local anesthetic systemic toxicit

  36. Slide 36: HTX-011 Clinical Development: Opioid Elimination Study in Herniorrhaphy (Study 215)

    HTX-011 Clinical Development Phase 2 Opioid Elimination Study in Herniorrhaphy (Study 215)

  37. Slide 37: Study 215 Herniorrhaphy: Pilot Opioid Elimination Study

    Study 215 Herniorrhaphy: Pilot Opioid Elimination Study Study Rationale: Pilot study to evaluate use of HTX-011 with a standard background multimodal regimen. Study Design: Cohort Treatment 1 2 Number of Subjects Dosed 33 30 HTX-011 300 mg √ √ + Preoperative oral acetaminophen (APAP) √ √ + Postopera

  38. Slide 38: Study 215: Pain Kept in the Mild Range Through 72 Hours

    Study 215 Herniorrhaphy: HTX-011 Plus Acetaminophen and Ibuprofen Kept Pain in the MiId Range Through 72 Hours Addition of IV ketorolac provided no added benefit beyond oral acetaminophen and ibuprofen. Cohort 2: 1:Preop oral APAP + Intraoperative IV Ketorolac + Postop APAP + ibuprofen (N=30) Mild P

  39. Slide 39: Study 302 and Study 215: Proportion of Patients Opioid-Free

    Study 302 and Study 215 Herniorrhaphy: Proportion of Patients Opioid-Free 39 HTX-011 is an investigational new drug and not approved by the FDA

  40. Slide 40: Study 302 and Study 215: Mean Consumption of Opioid Rescue Medication

    Study 302 and Study 215 Herniorrhaphy: Mean Consumption of Opioid Rescue Medication Opioid consumption is measured in milligram morphine equivalents (MME) 40 HTX-011 is an investigational new drug and not approved by the FDA

  41. Slide 41: Proposed Standardized Protocol for Outpatient Open Inguinal Hernia Repair

    Proposed Standardized Protocol for Outpatient Open Inguinal Hernia Repair Surgery • HTX-011 at the end of surgery • Scheduled acetaminophen and ibuprofen for 5 days; PRN after that • For discharge 2 hours post surgery, only patients who have experienced a pain score of 6 or more should be given disc

  42. Slide 42: HTX-034 Development

    HTX-034 Development Next Generation Product for Postoperative Pain

  43. Slide 43: HTX-034 Produces Complete Elimination of Pain in Pig Model

    HTX-034 Produces Complete Elimination of Pain Through 7 Days in Pig Postoperative Pain Model Saline Placebo Liposomal Bupivacaine HTX-011 HTX-034 (Cohort 1) HTX-034 (Cohort 2) 70.0 This validated pig model of 60.0 postoperative pain has been Withdrawal Force (g) 50.0 predictive of clinical 40.0 obse

  44. Slide 44: The Commercialization of HTX-011

    The Commercialization of HTX-011 Advancing Pain Management 44 HTX-011 is an investigational new drug and not approved by the FDA

  45. Slide 45: Established Platform With Experienced Teams in Place

    Established Platform With Experienced Teams in Place We are prepared for the launch of HTX-011. Our critical teams are already in place, with extensive experience in successful hospital launches. EXISTING PLATFORM ADVANTAGES Key Account Payer Management Strong KOL relationships Successful hospital a

  46. Slide 46: Commercial Teams Achieved Rapid Adoption of CINVANTI

    Commercial teams achieved rapid adoption of CINVANTI and captured one-third of the market in the first 12 months of launch CINVANTI Ordering Accounts Since Launch Total Market Share 500 100% 7% 13% 450 22% 33% 400 80% 224 350 215 192 300 60% 169 250 138 93% 114 87% 200 80 40% 78% 60 67% 150 42 249 2

  47. Slide 47: CINVANTI Launch: Execution Across Clinic and Hospital

    Commercial teams demonstrated the ability to execute across both clinic and hospital EMEND IV Total CINVANTI 100% 100% 93% 87% CINVANTI Launch 80% 78% (Jan 3, 2018) 68% 60% 32% 40% 22% 13% 20% 7% 0% Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 (LE) NK1 Units Q1’18 Q2’18 Q3’18 Q4’18 (LE) Total** (000s) 334 372 391

  48. Slide 48: Key CINVANTI Learnings to Support HTX-011 Launch

    Key CINVANTI Learnings to Support HTX-011 Launch HTX-011 KEY DRIVERS CINVANTI MOA, Superior efficacy vs. SOC DIFFERENTIATED First and only polysorbate PRODUCT 80-free NK1 RA Broad Access Pricing Lower Acquisition Cost (-$40) WAC 3-year pass through (C-Code) 340B 3- year pass through (C-Code) Top 200

  49. Slide 49: The Market is Large and Waiting for an Effective Non-opioid Solution

    The Market is Large and Waiting for an Effective Non-opioid Solution Theoretical and Target Market ~29M Annual US Surgical Procedures Requiring Postoperative Pain Management Local Anesthetic Route of Delivery * ~13.5M procedures ~15.5M procedures THE LARGEST Initial Targets Secondary Targets OPPORTU

  50. Slide 50: HTX-011 is Focused on the Largest Market Opportunity

    HTX-011 is focused on the largest market opportunity Local Anesthetic Route of Delivery Local Anesthetic Volume Share Bupivacaine THE LARGEST 15% OPPORTUNITY Lidocaine All Local, 85% TO DRIVE 4% VALUE AND Exparel CREATE 53% 4% CHANGE NB, 15% Others 14% Ropivacaine NB 10% Bupivacaine NB NB: Nerve Blo

  51. Slide 51: Physicians Indicated a Raw Preference Share of 56% for HTX-011

    Physicians indicated a raw preference share of 56% for HTX-011 across the covered procedures Preference Share (%, Raw) Overall Wt. Average Preference Share Knee Arthroplasty 67% Hernia Repair - Open 67% Hernia Repair - Laparoscopic 67% Roux-en-Y Gastric Bypass 63% Hysterectomy - Laparoscopic 62% Gas

  52. Slide 52: HTX-011 Enjoyed a Physician Preference Share of 44%

    HTX-011 Enjoyed a Physician Preference Share of 44% Adjusted Physician Preference Share Distribution 14% • HTX-011 is likely to initially convert share from 25% -6% Exparel, as well as the rest of the local anesthetics Other "caines" (bupivacaine & other “caines”) (e.g. lidocaine, ropivacaine, gener

  53. Slide 53: Customers Value HTX-011's Superior Product Profile

    Customers Value HTX-011’s Superior Product Profile • Highly favorable feedback from both physicians and pharmacy directors, 71% 71% of physicians would advocate driven by key differentiators versus bupivacaine, including a novel MOA supported by superior pain reduction, opioid reduction, and opioid-

  54. Slide 54: Being Second to Market is NOT a Significant Obstacle

    Being Second to Market is NOT a Significant Obstacle to Commercial Success Exparel® is a small obstacle to HTX-011 uptake as its penetration is less than 6% • Across product attributes, surgeons and pharmacy directors surveyed consistently prefer HTX-011 over Exparel for the following reasons: • Sig

  55. Slide 55: Pharmacy Directors Prefer HTX-011 to Exparel

    Pharmacy Directors Prefer HTX-011 to Exparel® Impact of HTX-011 Launch on Formulary Status of Exparel Most pharmacy directors indicate Exparel Formulary Status vs. Expected HTX-011 Status HTX-011 would displace Exparel on formulary • Over 50% of pharmacy directors report Exparel status Not on that i

  56. Slide 56: HTX-011 has Strategic Advantages Across Each Setting of Care

    HTX-011 has Strategic Advantages Across Each Setting of Care Clearly differentiated strategy supported by building advocacy with pharmacy, surgeons, and anesthesiologists Hospitals account for 91%, including Ambulatory surgical centers 13.5 top 200 IDNs (12.3M procedures) account for 8% (1.1M proced

  57. Slide 57: 340B Hospital Summary

    340B Hospital Summary • ~2258 hospitals (excluding children’s & psych) • Perform 8.4M outpatient surgeries • 4.4M inpatient surgeries/year • Manufacturers required to provide 23.1% discount off ASP/WAC • Discount does not impact ASP or best price calculations • Effective January 1, 2018, CMS reimbur

  58. Slide 58: High-Value Procedures in Initial Target Market

    High-Value Procedures in Initial Target Market Annual Volume Overall % Local (‘000s, US, 2015) Anesthetic Use Procedure Total Outpatient ASC Non- Inpatient Medicare Survey Procedures (C-code) (C-Code) Medicare Knee arthroplasty 815 721 65 28 41% 59%* 87% Hip arthroplasty 337 325 7 5 43% 57%* 81% Ort

  59. Slide 59: Heron is Well Positioned to Execute a Blockbuster Launch for HTX-011

    Heron is Well Positioned to Execute a Blockbuster Launch for HTX-011 Proven track record with hospital launch success Existing robust platform and structure to support launch Significant unmet need and market opportunity Highly focused launch strategy to accelerate sales Unprecedented value proposit

  60. Slide 60: CINV Commercial Products

    » CINV Commercial Products \ > XQ F \ (eson \. \ _

  61. Slide 61: CINV Prophylaxis Typically Requires Two Complimentary Mechanisms of Action

    CINV Prophylaxis Typically Requires Two Complimentary Mechanisms of Action NK1 receptor antagonists NK1 receptor • Substance P is primary driver of delayed antagonist CINV, but related to ~15% of acute failures CINVANTI™ • EMEND® IV (fosaprepitant), which has 90% share of the US NK1 market, contains

  62. Slide 62: Heron's CINV Portfolio Outperforms All CINV Branded Launches in Past 10 Years

    Heron’s CINV Portfolio Continues to Outperform All CINV Branded Launches in Past 10 Years First 12 Months of Sales for All CINV Brand Launches in Last 10 Years 277,000 68,694 33,530 11,759 2,756 Sancuso (2008) Akynzeo… Varubi… SUSTOL… CINVANTI (2018) Sources: IMS DDD; Heron actuals (distributor 867

  63. Slide 63: CINV Portfolio Achieved $76.7M in Net Product Sales in 2018

    CINV Portfolio Achieved $76.7M in Net Product Sales in 2018 and Over $100M Since Inception CINV portfolio net sales by quarter $30 $28.1 Millions $25 $19.8 $20 CINVANTI $17.3 SUSTOL $23.0 $15 $11.6 $11.2 $16.4 $10 $5.2 $5 $8.6 $10.1 $8.5 $6.4 $6.1 $5.1 $3.6 $3.4 $- $1.3 Q4 2016 Q1 2017 Q2 2017 Q3 20

  64. Slide 64: CINVANTI Accounts and Market Share Continue to Grow

    CINVANTI Accounts and Market Share Continue to Grow CINVANTI Ordering Accounts Since Launch Total Market Share 500 100% 7% 13% 450 22% 33% 400 80% 224 350 215 192 300 60% 169 250 138 93% 114 87% 200 80 40% 78% 60 67% 150 42 249 215 225 100 26 197 20% 161 175 152 133 50 11 108 82 0 41 0 18 0% Jan Feb

  65. Slide 65: CINVANTI Market Share is Climbing Steadily Across All Segments

    CINVANTI Market Share is Climbing Steadily Across All Segments EMEND IV Total Factors influencing further share growth: CINVANTI 100% 100% 93% 87%  Unique J code Jan 2019 CINVANTI Launch 80% 78%  Long tail of use (30-40% of use is in (Jan 3, 2018) 68% 60% hundreds of smaller practices) is 32% chal

  66. Slide 66: Strategy to Preserve CINVANTI Through Generic Arbitrage

    Strategy to preserve CINVANTI through generic arbitrage • Leverage favorable 340B pass through status, ASP+ 6% through 2020 • Potential Q1 2019 label expansion to include IVP further differentiating CINVANTI from Emend and generics • Long term contracts extending beyond September of 2019 • CINVANTI

  67. Slide 67: ALOXI/Palonosetron Arbitrage Lasting Longer Than Zofran/Ondansetron Arbitrage

    ALOXI/Palonosetron Arbitrage is Lasting Much Longer Than the Zofran/Ondansetron Arbitrage $300 • Generic manufacturers have evolved and Branded ASP become more disciplined on pricing to $250 maximize revenue $222 $206 • Even with multiple generics on the market, $200 $200 $197 the price of palonoset

  68. Slide 68: 2019 CINV Franchise Outlook

    2019 CINV Franchise Outlook SUSTOL®: While we expect to see sales of SUSTOL slowly improve, the core business will continue to be weak during the protracted palonosetron arbitrage CINVANTI® • We expect to see steady growth in the marketplace through mid-year due to what we believe is the best overal

  69. Slide 69: Financial Summary

    Financial Summary Summary Statement of Operations and Net Cash Used in Operations Three Months Ended Nine Months Ended (In thousands, except per share data) September 30, 2018 September 30, 2018 Net product sales $ 19,786 $ 48,630 Operating expenses1 61,566 181,253 Other income, net 3,434 3,342 Net

  70. Slide 70: Key Catalysts in Pain Management & CINV Franchises

    Key Catalysts in Pain Management & CINV Franchises HTX-011 & HTX-034 for Postoperative Pain CINVANTI ® and SUSTOL® for CINV  FDA accepted NDA  2018 net sales: $76.7M  Priority Review Designation • 2018 net sales guidance for CINV:  PDUFA date April 30, 2019 $60M - $70M raised to $70M - $72M  No

  71. Slide 71: © 2019 HERON THERAPEUTICS, INC. ALL RIGHTS RESERVED.

    © 2019 HERON THERAPEUTICS, INC. ALL RIGHTS RESERVED.

Heron Therapeutics — Corporate Update (January 2019) on 6ix