NASDAQ$HRTX

Heron Therapeutics Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Heron Therapeutics reported mixed Q3 2021 results with ZYNRELEF launch and oncology care sales stabilization.

Heron Therapeutics announced its Q3 2021 financial results, which included the commercial launch of ZYNRELEF with $2.1 million in net product sales, stabilization of oncology care franchise net product sales at $21.1 million, and a net loss of $52.4 million. The company is focusing on expanding the ZYNRELEF label and expects moderate growth in oncology care sales in 2022.

  • ZYNRELEF net product sales reached $2.1 million in its first quarter of launch, with 160 unique accounts purchasing and 50% reordering.
  • ZYNRELEF received 126 formulary approvals, representing over a 91% hospital approval rate.
  • Oncology care franchise net product sales were $21.1 million, showing stabilization compared to the previous year.
  • Heron expects Q4 2021 net product sales for the oncology care franchise to be in the range of $20 million to $22 million.

Headline financials

Total Revenue

$23.2M

Previous: $20M+16.4%
EPS (adj)

-$0.51

Previous: -$0.64+20.3%
Capital Expenditures

-$2.63M

Previous: -$4.32M+39.1%
Free Cash Flow

-$55M

Previous: -$62.5M+12.0%
Net Income

-$52.4M

Previous: -$58.2M+10.0%
Operating Income

-$51.7M

Previous: -$58.4M+11.4%
Gross Profit

$11.9M

Previous: $12.8M-7.2%
Cash & Equivalents

$160M

Previous: $95.1M+67.7%
Total Assets

$352M

No prior period
Stock-Based Comp

$11.2M

No prior period

Revenue & EPS history

Heron Therapeutics · Revenue · Quarterly

$23.2M

Q3 2021+16.4%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Heron Therapeutics · $23.2M total across 3 segments · Q3 2021

  • CINVANTI
    $18M-9.1%
  • SUSTOL
    $3.1M+1450.0%
  • ZYNRELEF
    $2.1M

Forward guidance

Heron Therapeutics anticipates further reduction in net cash usage and moderate growth in oncology care sales.

Tailwinds

  • ZYNRELEF's commercial launch is progressing well with significant formulary approvals.
  • The company has submitted an sNDA to expand the ZYNRELEF label.
  • Oncology care franchise sales have stabilized and are expected to see moderate growth in 2022.
  • Net cash used for operating activities is expected to further reduce next quarter.
  • Large-scale manufacturing capabilities are being added with a secondary supplier for ZYNRELEF.

Headwinds

  • COVID-19 pandemic continues to impact new cancer patient treatment starts.
  • Value-based payer reimbursement impacts oncology care franchise results.
  • Net loss for the quarter was $52.4 million.
  • Net cash used for operating activities for the nine months ended September 30, 2021 was $158.1 million.
  • The company experienced changes in working capital related to the launch of ZYNRELEF in July 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.9%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.4%

Avg return

30 days after

48%

30 / 63 earnings

Positive

+57.6%

Q3 2023

Best reaction

-42.9%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-21.1%-29.8%-66.3%
Q4 2025+12.4%+6.5%-27.8%
Q3 2025-1.8%-6.8%+11.0%
Q1 2025+13.8%-0.9%-6.1%
Q4 2024+19.9%+49.1%+32.2%
Q3 2024-34.2%-35.3%-13.0%
Q2 2024-24.0%-24.7%-31.6%
Q1 2024+6.0%-2.5%+27.8%
Q4 2023+24.9%+27.0%+22.0%
Q3 2023+57.6%+98.2%+230.9%
Q2 2023+3.4%+1.9%-21.6%
Q1 2023-42.9%-48.6%-49.4%
Q4 2022-3.3%-18.3%+40.1%
Q3 2022-12.0%+0.6%-20.5%
Q2 2022+31.7%+48.5%+33.6%
Q1 2022-14.8%-12.7%-34.3%
Q4 2021-23.8%-29.7%-24.6%
Q3 2021+0.8%+10.1%-24.0%
Q2 2021-0.3%-6.4%-1.4%
Q1 2021+11.1%-16.7%-11.2%
Q4 2020+1.1%+1.3%-14.7%
Q3 2020-5.1%-0.1%+1.5%
Q2 2020-9.4%-8.3%-18.8%
Q1 2020+2.4%+7.2%+34.1%
Q4 2019-1.0%-11.4%-41.6%
Q3 2019-2.3%+4.8%+24.1%
Q2 2019+0.5%+10.3%+10.3%
Q1 2019+6.3%+7.0%+4.6%
Q4 2018-1.4%-1.8%-15.3%
Q3 2018+3.8%-4.6%-8.1%
Q2 2018+2.5%+1.8%-2.6%
Q1 2018+1.2%+4.3%+0.3%
Q4 2017-10.2%-6.2%+21.9%
Q3 2017-0.3%+1.9%-4.2%
Q2 2017-1.6%-0.6%+0.9%
Q1 2017-9.3%-8.9%-13.7%
Q4 2016+0.4%+3.2%+6.5%
Q3 2016+13.3%+7.7%+7.3%
Q2 2016+5.1%+8.0%-2.4%
Q1 2016-14.9%
Q3 2015-0.5%
Q2 2015-1.5%
Q1 2015+1.4%
Q4 2014+5.4%
Q3 2014-5.8%
Q2 2014-0.1%
Q1 2014+1.1%
Q4 2013+3.7%
Q3 2013+2.2%
Q2 2013-2.2%
Q1 2013+6.8%
Q4 2012-2.9%
Q3 2012-3.3%
Q2 2012-5.9%
Q1 2012+2.3%
Q4 2011+18.2%
Q3 2011+0.0%
Q2 2011+3.6%
Q1 2011+5.3%
Q4 2010-21.3%
Q3 2010-26.9%
Q2 2010-4.7%
Q1 2010-12.8%

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