Heron Therapeutics Reports Q2 2025 Financial Results with Increased Sales and Improved Gross Margin

Heron Therapeutics, Inc. reported its financial results for the second quarter of 2025, revealing a net product sales increase to $37.2 million, up from $36.0 million in the same period last year. For the first half of 2025, total net product sales reached $76.1 million, compared to $70.7 million in the first half of 2024. The company achieved a gross profit of $27.3 million for the quarter, translating to a gross margin of 73.5%, an increase from 70.8% in the prior year. Despite these gains, Heron recorded a net loss of $2.4 million for the quarter, an improvement from a net loss of $9.2 million in Q2 2024.

The company experienced significant changes in its operational metrics, particularly in its acute care product line, which saw a 55.5% increase in sales during the second quarter, primarily driven by higher unit sales of ZYNRELEF and APONVIE. In contrast, oncology product sales decreased by 9.0% in the same period, attributed to increased competition from both branded and generic products. The overall decrease in oncology sales is expected to persist, impacting future revenue streams.

Heron has also made strategic moves to bolster its financial position. In August 2025, the company entered into a refinancing agreement that included a $110 million credit facility and the issuance of $35 million in senior convertible notes. This refinancing is aimed at retiring existing debt and providing additional working capital to support ongoing commercial and development initiatives. As of June 30, 2025, Heron had cash, cash equivalents, and short-term investments totaling $40.6 million, which management believes will be sufficient to meet operational needs for at least the next year.

Operationally, Heron reported a decrease in total operating expenses to $29.0 million for the second quarter, down from $32.0 million in the same period last year. This reduction was driven by lower research and development costs, which fell by 33.8% year-over-year, reflecting a decrease in personnel expenses and fewer write-offs of property and equipment. The company’s employee headcount has also been adjusted, contributing to the overall reduction in expenses.

Looking ahead, Heron remains focused on expanding its market presence and enhancing product adoption rates, particularly for ZYNRELEF and APONVIE. The company anticipates that the recent refinancings will provide the necessary capital to support its growth strategy, although it acknowledges the ongoing challenges posed by market competition in the oncology segment. Management's outlook emphasizes the importance of maintaining operational efficiency while pursuing opportunities for revenue growth through its product portfolio.