Heron Therapeutics Reports $2.6 Million Net Income and 12.4% Revenue Growth in Q1 2025

Heron Therapeutics, Inc. reported a net income of $2.6 million, or $0.02 per share, for the first quarter of 2025, a significant turnaround from a net loss of $3.2 million, or $0.02 per share, in the same period of 2024. The company’s total revenue for the quarter reached $38.9 million, reflecting a 12.4% increase from $34.7 million in the prior year. This growth was primarily driven by a notable 89.4% increase in acute care product sales, particularly from ZYNRELEF and APONVIE, which contributed approximately $4.1 million to the total increase. Gross profit for the quarter was $30.4 million, resulting in a gross margin of 78.3%, up from 75.6% in the previous year.

Operating expenses decreased to $27.3 million from $31.0 million year-over-year, with reductions in research and development costs by 50.5% to $2.3 million, and general and administrative expenses down by 15.2% to $12.7 million. The decrease in operating expenses was attributed to a reduction in headcount and related costs, as well as decreased legal expenses. Sales and marketing expenses increased slightly by 7.6% to $12.3 million, reflecting increased investment to support the growth of acute care products.

As of March 31, 2025, Heron reported total assets of $235.8 million, with cash, cash equivalents, and short-term investments amounting to $50.7 million. The company’s total liabilities stood at $264.2 million, with a stockholders’ deficit of $28.5 million, an improvement from a deficit of $33.7 million at the end of 2024. The company’s cash position is expected to be sufficient to meet anticipated cash requirements for at least the next twelve months, although it will need to address the upcoming maturity of $150 million in senior convertible notes due in May 2026.

In terms of operational developments, Heron continues to focus on its product portfolio, which includes ZYNRELEF, APONVIE, CINVANTI, and SUSTOL. The company has seen increased market share and customer counts for its acute care products, contributing to the revenue growth. Additionally, Heron announced a settlement agreement with Mylan to resolve ongoing patent litigation related to generic versions of CINVANTI and APONVIE, which may positively impact its market position.

Looking ahead, Heron anticipates continued growth in its acute care product sales, driven by increased market penetration and customer acquisition. However, the company also faces challenges from market competition in its oncology product line, which may affect future sales. Management remains focused on optimizing operational efficiencies and exploring financing options to support ongoing product development and commercialization efforts.