Heron Therapeutics Reports 16.5% Revenue Growth in Q3 2025

Heron Therapeutics, Inc. reported its financial results for the third quarter of 2025, revealing a net product sales increase to $38.2 million, up from $32.8 million in the same period last year. This represents a 16.5% growth year-over-year. For the nine months ending September 30, 2025, total net product sales reached $114.3 million, compared to $103.5 million for the same period in 2024. The company reported a gross profit of $26.3 million for the quarter, yielding a gross margin of 68.8%, slightly down from 71.2% in the prior year. The net loss for the quarter was $17.5 million, or $0.10 per share, compared to a net loss of $4.8 million, or $0.03 per share, in the third quarter of 2024.

The company experienced significant changes in its financial performance compared to the previous fiscal period, particularly in operating expenses, which rose to $30.4 million from $27.8 million year-over-year. This increase was driven by higher sales and marketing expenses, which grew by 18% to $12.9 million, reflecting increased marketing efforts for its products, particularly ZYNRELEF. Research and development expenses decreased to $3.5 million from $4.5 million, attributed to reduced contract services and write-offs of property and equipment.

Strategically, Heron Therapeutics has made notable advancements, including the completion of a private placement equity offering that raised approximately $27.7 million. This included the issuance of 13.2 million shares of common stock and 524,141 shares of Series A convertible preferred stock. Additionally, the company executed a significant amendment to its working capital facility agreement, increasing the total principal amount available to $150 million and extending the maturity date to September 1, 2030. These moves are part of Heron's strategy to bolster its financial position and support ongoing product commercialization efforts.

Operationally, Heron reported an increase in customer engagement, with total acute care net product sales rising by 67.2% in the third quarter, driven by increased market share for ZYNRELEF and APONVIE. The company noted that oncology net product sales saw a modest increase of 1.7% in the same period, although overall sales in this segment have faced pressure from market competition. As of September 30, 2025, Heron had cash, cash equivalents, and short-term investments totaling $55.5 million, which management believes will be sufficient to meet anticipated cash requirements for at least the next year.

Looking ahead, Heron Therapeutics plans to wind down the commercialization of SUSTOL while evaluating potential product updates, with a possible reintroduction as early as late 2027. The company remains focused on expanding its product offerings and market presence, particularly in the acute care and oncology sectors, while navigating the challenges posed by competition and market dynamics.