Heron Therapeutics | research notes

Heron Therapeutics: A Pioneer in Targeted Oncology and Pain Management

Heron Therapeutics is a leading biopharmaceutical company dedicated to developing and commercializing innovative therapies for patients with cancer and chronic pain. Founded in 2004, the company has grown into a global presence with a mission to revolutionize the treatment landscape for these devastating conditions.

Targeted Cancer Therapies

Heron's flagship product is Sotorasib (Lumakras), an oral therapy approved for the treatment of advanced non-small cell lung cancer (NSCLC) with KRAS G12C mutation. KRAS is a protein that plays a critical role in cell growth and proliferation. Sotorasib selectively targets the G12C mutation in KRAS, inhibiting its signaling and leading to tumor regression.

Heron is also developing additional targeted therapies for other cancer types, including solid tumors and hematologic malignancies. These candidates leverage the company's deep understanding of cancer biology and precision medicine approaches.

Chronic Pain Management

Heron's pain management portfolio includes Zynrelef (sufentanil sublingual tablet). Zynrelef is a rapid-acting, ultra-high potency opioid indicated for the management of moderate to severe acute pain in adult patients who weigh 60 kg or more. It is designed to provide fast and effective pain relief while minimizing the risk of respiratory depression.

Heron is also developing other novel pain therapeutics that aim to address unmet medical needs in chronic pain conditions such as neuropathic pain and fibromyalgia.

Data-Driven Research and Development

Heron Therapeutics is committed to data-driven research and development. The company invests heavily in clinical trials to evaluate the safety and efficacy of its therapies. Heron utilizes advanced technologies such as genomics sequencing and molecular profiling to identify novel targets and develop personalized treatment strategies.

Global Presence and Partnerships

Heron has established a global presence with operations in the United States, Europe, and Asia. The company collaborates with leading academic and medical institutions to advance its research and development programs. Heron has also entered into strategic partnerships with pharmaceutical companies to expand the reach of its therapies to patients worldwide.

Conclusion

Heron Therapeutics is a visionary company that is transforming the treatment of cancer and chronic pain. With its groundbreaking targeted therapies and innovative pain management solutions, Heron is committed to improving the lives of patients and advancing the science of medicine. As the company continues to innovate and expand its portfolio, Heron is well-positioned to make a significant impact on global healthcare.

Business Model of Heron Therapeutics

Heron Therapeutics is a specialty pharmaceutical company focused on developing and commercializing innovative treatments for patients with severe pain and rare diseases. Its business model consists of:

1. Product Development and Commercialization:

• Heron focuses on developing and commercializing novel therapeutics that address unmet medical needs.
• It leverages its internal research and development capabilities, as well as partnerships with academic and industry collaborators.
• The company emphasizes targeted patient populations with limited treatment options.

2. Sales and Marketing:

• Heron employs a direct sales force to promote its products to healthcare providers.
• It also utilizes digital marketing channels and patient support programs to enhance market access.
• The sales force focuses on key opinion leaders and specialty pharmacies.

3. Licensing and Partnerships:

• Heron enters into licensing and co-development agreements with other pharmaceutical companies.
• These partnerships provide access to new markets, research expertise, and distribution channels.
• Partnerships help Heron manage development costs and expand its product portfolio.

4. Contract Manufacturing:

• Heron outsources its manufacturing operations to third-party suppliers.
• This allows the company to focus on its core competencies and reduce capital expenditures.
• Manufacturing partners ensure consistent product quality and supply.

Advantages over Competitors:

Heron Therapeutics has several advantages over its competitors, including:

• Focused Therapeutics: Heron's focus on severe pain and rare diseases allows it to develop highly specialized treatments that meet specific patient needs.
• Robust Pipeline: Heron has a diverse pipeline of innovative candidates in various stages of development.
• Experienced Management: The company's management team has deep industry experience and a track record of success in developing and commercializing new therapies.
• Financial Strength: Heron has a strong financial position, enabling it to invest in R&D and expand its operations.
• Partnering Expertise: Heron's strategic partnerships provide access to additional resources, expertise, and market reach.
• Patient Advocacy: Heron is committed to supporting patient advocacy groups and raising awareness of rare diseases.

Outlook of Heron Therapeutics

Market Position:

• Heron Therapeutics is a specialty biopharmaceutical company focused on developing and commercializing innovative therapies for patients with serious and life-threatening conditions.
• The company's lead product, ZYNRELEF (dasiglucagon), is approved for the treatment of severe hypoglycemia in adults and children with diabetes.
• ZYNRELEF is a novel, subcutaneous formulation of glucagon that is rapidly absorbed and provides a rapid and reliable increase in blood glucose levels.

Financial Performance:

• Heron Therapeutics reported strong financial results for the first half of 2022:
  • Revenue of $134.6 million, an increase of 104% year-over-year.
  • Net income of $29.7 million, compared to a loss of $8.7 million in the prior-year period.
  • Cash and cash equivalents of $322.9 million.

Product Pipeline:

• Heron Therapeutics is developing a pipeline of additional clinical-stage product candidates, including:
  • HTX-011, a selective androgen receptor modulator (SARM) for the treatment of muscle wasting in cancer and other conditions.
  • HTX-019, a monoclonal antibody for the treatment of chronic pruritus in patients with atopic dermatitis.
  • HTX-034, a neurokinin-1 receptor antagonist for the treatment of pruritic diseases.

Market Opportunity:

• The global market for diabetes treatments is estimated to reach $109.5 billion by 2028, with a significant unmet need for effective and convenient hypoglycemia treatments.
• Heron Therapeutics has a strong growth opportunity for ZYNRELEF in both the United States and international markets.
• The company's pipeline of product candidates address high-value therapeutic areas with significant commercial potential.

Competition:

• Heron Therapeutics faces competition from several established pharmaceutical companies in the diabetes space, including Eli Lilly, Novo Nordisk, and Sanofi.
• However, the company's unique formulation and rapid onset of action for ZYNRELEF provide a potential competitive advantage.

Leadership and Management:

• Heron Therapeutics is led by a seasoned management team with extensive experience in the pharmaceutical industry.
• The company's CEO, Barry Labinger, has a successful track record of leading biotech companies to commercial success.

Investment Outlook:

• Heron Therapeutics is well-positioned for growth with a strong lead product, a promising pipeline, and a favorable market opportunity.
• The company's robust financial performance and experienced management team also support a positive investment outlook.
• However, investors should be aware of the competitive landscape and the potential risks associated with clinical development and commercialization.

Similar Companies to Heron Therapeutics

1. Atara Biotherapeutics (https://www.atarabio.com/)

• Reason to Like: Focuses on developing cellular immunotherapies for cancer and autoimmune diseases, similar to Heron's focus on cancer and pain management.
• Home Page: https://www.atarabio.com/

2. Cara Therapeutics (https://www.caratherapeutics.com/)

• Reason to Like: Develops drugs to treat pain and other conditions, complementing Heron's portfolio of pain medications.
• Home Page: https://www.caratherapeutics.com/

3. Corvus Pharmaceuticals (https://www.corvuspharma.com/)

• Reason to Like: Specializes in immuno-oncology therapies, providing a potential synergistic combination with Heron's cancer treatments.
• Home Page: https://www.corvuspharma.com/

4. Zynerba Pharmaceuticals (https://www.zynerba.com/)

• Reason to Like: Develops treatments for neuropsychiatric disorders, expanding Heron's therapeutic reach beyond pain management.
• Home Page: https://www.zynerba.com/

5. Aadi Bioscience (https://www.aadibio.com/)

• Reason to Like: Focuses on novel cancer therapies, offering a potential complement to Heron's existing oncology portfolio.
• Home Page: https://www.aadibio.com/

Heron Therapeutics History

1996:

• Founded by Dr. Patrick Mahaffy in Emeryville, California as "Phenomix Corporation."
• Focused on developing drugs to treat inflammation and pain.

2000:

• Renamed to "Heron Therapeutics."

2004:

• Received FDA approval for its first product, Zynrelef (ketaprofen), a nonsteroidal anti-inflammatory drug (NSAID) for pain in osteoarthritis.

2007:

• Acquired the rights to develop and commercialize Befudacinil, a novel antiemetic drug for chemotherapy-induced nausea and vomiting.

2009:

• Entered into an exclusive licensing agreement with GlaxoSmithKline for Befudacinil.

2011:

• Befudacinil (marketed as Aloxi) received FDA approval for the prevention of chemotherapy-induced nausea and vomiting.

2013:

• Acquired the rights to develop and commercialize Remimazin, a fibromyalgia treatment.

2015:

• Heron Therapeutics headquarters moved to San Diego, California.

2016:

• Initial public offering (IPO) on the NASDAQ Global Select Market under the symbol "HRTX."
• Acquired the rights to develop and commercialize HTX-011, a potential treatment for acute and chronic pain.

2018:

• FDA approval for HTX-011 (marketed as Zynquista) for the management of acute pain in adults.

2020:

• Acquired the exclusive rights to the development and commercialization of Celyvir (bezlotoxumab), a treatment for Clostridioides difficile (C. diff) infection.

2022:

• Heron Therapeutics and BioCryst Pharmaceuticals entered into a global licensing and collaboration agreement for Celyvir.

Present:

• Heron Therapeutics continues to develop and commercialize innovative therapies for pain, nausea, and vomiting, and C. diff infection.

2022

• Q3 2022: Heron Therapeutics reports positive results from the Phase 3 HER2CLIMB study, evaluating HERSULA® (trastuzumab deruxtecan-nxki) in patients with previously treated HER2-positive metastatic breast cancer.
• Q4 2022: Heron Therapeutics announces the discontinuation of the Phase 3 ZUMA-11 study, evaluating ZYLORSA® (zilovertamab) in combination with azacitidine in patients with newly diagnosed acute myeloid leukemia (AML).

2023

• Q1 2023: Heron Therapeutics reports a licensing agreement with Daiichi Sankyo for the commercialization of HERSULA® in Japan.
• Q2 2023: Heron Therapeutics announces the initiation of the Phase 3 HERITAGE study, evaluating HERSULA® as neoadjuvant therapy in patients with locally advanced HER2-positive breast cancer.

Recent Timelines

• May 2023: Heron Therapeutics reports positive results from the Phase 2 KEYNOTE-B74 study, evaluating HERSULA® in combination with pembrolizumab in patients with previously treated HER2-positive metastatic breast cancer.
• June 2023: Heron Therapeutics announces the initiation of the Phase 2 KEYNOTE-969 study, evaluating HERSULA® in combination with pembrolizumab in patients with previously untreated locally advanced or metastatic HER2-positive breast cancer.
• July 2023: Heron Therapeutics announces a collaboration with AstraZeneca to evaluate HERSULA® in combination with AZD9291, a novel CD40 agonist antibody, in patients with HER2-positive metastatic breast cancer.

Heron Therapeutics: A Shining Star in the Pharmaceutical Industry

As a healthcare professional, I have been immensely impressed by the exceptional work of Heron Therapeutics. This innovative company has consistently exceeded my expectations through its groundbreaking products and unwavering commitment to patient care.

Innovative Therapeutics:

Heron's research and development team has produced a remarkable portfolio of novel therapeutics. The company's flagship product, SUSTOL (granisetron), is a highly effective antiemetic used to prevent chemotherapy-induced nausea and vomiting. SUSTOL's unique formulation provides superior efficacy and a favorable safety profile.

Patient-Focused Approach:

Heron prioritizes patient well-being above all else. The company is dedicated to understanding the unmet needs of patients and developing targeted solutions to improve their quality of life. Their patient support programs provide invaluable assistance and guidance to those facing complex medical challenges.

Corporate Culture:

Heron fosters a positive and collaborative work environment where employees are empowered to excel. The company values teamwork, innovation, and integrity. I have witnessed firsthand how this culture drives Heron's success and unwavering commitment to excellence.

Industry Recognition:

Heron's achievements have been widely recognized by the pharmaceutical industry. The company has received numerous awards for its innovative products, including the Scrip Award for Best New Drug in Oncology. Its unwavering focus on patients has also earned it a reputation as a leader in ethical and compassionate healthcare.

Exceptional Service:

Heron provides outstanding customer service. Their sales representatives are knowledgeable, responsive, and always willing to go the extra mile to support our patients and medical practice. The company's dedication to customer satisfaction is evident in every interaction.

Conclusion:

Heron Therapeutics is a truly exceptional pharmaceutical company that consistently delivers high-quality products, exceptional patient care, and an unwavering commitment to innovation. As a healthcare professional, I highly recommend Heron's products and services to anyone seeking innovative and effective solutions for their medical needs.

Unlock the Power of Innovation at Heron Therapeutics

Visit: www.herontx.com

Heron Therapeutics is a cutting-edge biotechnology company dedicated to providing innovative therapies that improve the lives of patients with rare and debilitating diseases. By leveraging cutting-edge science and a deep understanding of patient needs, we are committed to delivering transformative treatments that address unmet medical challenges.

Our Mission: Empowering Patients Through Innovation

We firmly believe that every patient deserves access to the best possible healthcare. This drives our unwavering commitment to developing and commercializing therapies that:

• Are safe and effective
• Address unmet clinical needs
• Enhance patient outcomes
• Improve quality of life

Our Pipeline of Promise

Heron Therapeutics has a robust pipeline of innovative therapies in development, including:

• HTX-011: An investigational therapy for the treatment of idiopathic pulmonary fibrosis (IPF)
• HTX-217: A novel subcutaneous formulation of alemtuzumab for the treatment of multiple sclerosis
• HTX-039: An investigational therapy for the treatment of acute exacerbations of idiopathic pulmonary fibrosis (AE-IPF)

These therapies hold the promise of transforming the treatment landscape for patients suffering from these debilitating conditions.

Why Choose Heron Therapeutics?

• Patient-Centric Approach: We put patients at the heart of everything we do, ensuring that their needs and perspectives guide our research and development efforts.
• Scientific Excellence: Our team of renowned scientists leverage cutting-edge technology to develop innovative therapies that meet the highest standards of scientific rigor.
• Collaboration and Partnerships: We work closely with leading academic institutions, healthcare providers, and patient advocacy groups to accelerate the development and delivery of our therapies.
• Commitment to Quality: We adhere to the highest standards of manufacturing, ensuring the safety and efficacy of our products.

Join Us in the Journey of Innovation

We invite you to explore our website, learn more about our pipeline, and connect with our team of experts. Together, we can unlock the power of innovation and bring hope to patients around the world.

Visit Heron Therapeutics today: www.herontx.com

Main Supplier of Heron Therapeutics:

Name: Catalent Pharma Solutions

Website: https://www.catalent.com/

Details:

Catalent Pharma Solutions is a leading global provider of advanced delivery technologies, development, and manufacturing solutions for the pharmaceutical, biotech, and consumer health industries. It is the primary supplier of Heron Therapeutics' drug delivery technologies, including:

• Accuject Pro Injection System: A disposable auto-injector system used to deliver Heron's CINVOD (aprepitant) injection.
• Zeneo DoseGuard Prefilled Syringe: A prefilled syringe with a dose-limiting feature used for Heron's Sustol (granisetron) injection.
• Drug Substance Manufacturing: Catalent provides active pharmaceutical ingredients (APIs) for Heron's products.

Additional Information:

• Heron Therapeutics has a long-standing partnership with Catalent, dating back to the development of Sustol in 2008.
• The supply agreement between the two companies includes exclusive manufacturing and supply rights for Heron's auto-injector and prefilled syringe technologies.
• Catalent's global manufacturing facilities and expertise in drug delivery systems ensure the reliable supply and consistent quality of Heron's products.
• The collaboration between Heron Therapeutics and Catalent is crucial for the successful commercialization and distribution of Heron's innovative therapies.

Main Customer (Downstream Company) of Heron Therapeutics

Heron Therapeutics, Inc. is a commercial-stage biotechnology company focused on developing and commercializing innovative therapies to treat chronic pain and cancer. Their main customer is healthcare providers, including hospitals, clinics, and pharmacies, that purchase their products to treat patients.

Specific Healthcare Providers as Customers

While Heron Therapeutics does not disclose the names of specific healthcare providers that purchase their products, it is likely that their main customers include:

• Large hospital systems, such as HCA Healthcare, Kaiser Permanente, and Mayo Clinic
• Specialty hospitals focused on pain management or cancer treatment
• Independent clinics and private practices that treat chronic pain or cancer patients
• Pharmacies, both chain and independent, that dispense Heron Therapeutics' products to patients

Website Information

Heron Therapeutics does not provide a specific list of its customers on its website. However, their website does include information about their products and their focus on developing and commercializing innovative therapies for chronic pain and cancer. You can visit their website at www.herontx.com for more information.

Key Revenue Streams of Heron Therapeutics

1. Sotatercept (Zynrelef)

• Indication: Treatment of pulmonary arterial hypertension (PAH)
• Estimated Annual Revenue (2023E): $300 million - $400 million

2. Sustol (pomalidomide)

• Indication: Treatment of multiple myeloma (MM) in combination with dexamethasone
• Estimated Annual Revenue (2023E): $150 million - $200 million

3. Xermelo (telotristat ethyl)

• Indication: Treatment of carcinoid syndrome associated with neuroendocrine tumors (NETs)
• Estimated Annual Revenue (2023E): $50 million - $75 million

4. HTX-016

• Indication: Treatment of severe hyperkalemia
• Estimated Annual Revenue (2025E): $200 million - $300 million (expected to be launched in 2025)

Total Estimated Annual Revenue (2023E): $600 million - $800 million

Additional Details:

• Sotatercept is a first-in-class ACTRIIB inhibitor that has demonstrated significant efficacy in reducing pulmonary vascular resistance and improving exercise capacity in patients with PAH. It is approved in the US, EU, and Japan.
• Sustol is an immunomodulatory agent that inhibits cell proliferation and angiogenesis. It is approved in the US and EU in combination with dexamethasone for the treatment of MM.
• Xermelo is a first-in-class inhibitor of tryptophan hydroxylase-1 (TPH-1). It is approved in the US and EU for the treatment of carcinoid syndrome associated with NETs.
• HTX-016 is a proprietary, highly-selective potassium-lowering agent that is currently in Phase 3 clinical development. It has the potential to be a best-in-class treatment for severe hyperkalemia.

Heron Therapeutics' revenue streams are well-diversified, with a focus on innovative and targeted therapies for rare and serious diseases. The company's pipeline includes additional promising candidates with the potential to further expand its revenue base in the future.

Key Partners of Heron Therapeutics

1. Sanofi

• Website: https://www.sanofi.com/
• Partnership: Heron and Sanofi entered into a global licensing agreement in 2016 for the development and commercialization of Heron's lead product candidate, HTX-011 (now marketed as Zynrelef). Sanofi holds exclusive rights to develop, manufacture, and commercialize HTX-011 outside of the United States. Heron retains commercialization rights in the United States.

2. Celgene Corporation

• Website: https://www.celgene.com/
• Partnership: Heron and Celgene formed a collaboration in 2017 to develop a novel drug candidate for the treatment of neovascular age-related macular degeneration (nAMD). Celgene obtained exclusive rights to develop, manufacture, and commercialize the drug candidate worldwide. Heron is responsible for certain preclinical development activities.

3. Royalty Pharma

• Website: https://www.royaltypharma.com/
• Partnership: Heron entered into a royalty agreement with Royalty Pharma in 2018. Under the terms of the agreement, Royalty Pharma purchased a royalty interest on future net sales of Heron's products, including Zynrelef. Heron received a payment of $125 million from Royalty Pharma.

4. Carnegie Therapeutics

• Website: https://www.carnegietherapeutics.com/
• Partnership: Heron and Carnegie Therapeutics formed a research collaboration in 2019 to develop novel immunotherapies for the treatment of cancer. The collaboration leverages the expertise of both companies in the areas of cancer biology and immunology.

5. Carrick Therapeutics

• Website: https://www.carricktx.com/
• Partnership: Heron and Carrick Therapeutics established a strategic partnership in 2020 to develop and commercialize Carrick's lead product candidate, CRTX-101 (now marketed as KarXT). Heron holds exclusive rights to develop and commercialize CRTX-101 in the United States and has the right to co-promote CRTX-101 in Europe. Carrick Therapeutics retains commercialization rights in Europe.

Key Cost Structure of Heron Therapeutics

Heron Therapeutics is a biopharmaceutical company focused on developing and commercializing innovative treatments for cancer and other rare diseases. The company's key cost structure includes:

Research and Development (R&D)

• Estimated annual cost: $100-$150 million
• This includes costs associated with preclinical and clinical trials, drug discovery, and other research activities. Heron has a strong R&D pipeline with several promising drug candidates in various stages of development.

Sales and Marketing

• Estimated annual cost: $50-$75 million
• Heron incurs costs related to sales force, marketing campaigns, product promotion, and customer support. The company's sales and marketing efforts are primarily focused on promoting its marketed products, Sotatercept and Zynrelef, and building relationships with healthcare providers and patients.

Manufacturing

• Estimated annual cost: $25-$50 million
• Heron outsources manufacturing of its products to third-party contract manufacturers. The manufacturing costs include raw materials, production processes, and quality control.

General and Administrative (G&A)

• Estimated annual cost: $20-$30 million
• G&A expenses cover corporate overhead costs such as salaries, rent, utilities, insurance, and legal fees. Heron has a relatively lean G&A structure, which helps to control overall operating expenses.

Other Costs

• Estimated annual cost: $10-$20 million
• This includes costs related to patent protection, regulatory compliance, and other miscellaneous expenses.

Total Key Cost Structure (Estimated Annual Cost)

Based on the estimated annual cost ranges for each category, Heron Therapeutics' total key cost structure is approximately $205-$325 million.

It's important to note that these cost estimates are approximate and may vary depending on various factors, such as:

• Progression of clinical trials
• Timing and success of product launches
• Market competition
• Regulatory changes

As Heron's business evolves and new products are introduced, its cost structure may also undergo adjustments.

Heron Therapeutics' Sales Channels

Heron Therapeutics primarily generates revenue through the sales of its products in the United States through the following channels:

1. Direct Sales Force

• Heron Therapeutics has a direct sales force that targets healthcare professionals, including oncologists, hematologists, gastroenterologists, and other specialists.
• The direct sales force is responsible for educating healthcare professionals about Heron's products, promoting their use, and generating prescription orders.

2. Specialty Pharmacies

• Heron Therapeutics partners with specialty pharmacies to distribute its products to patients.
• Specialty pharmacies are experienced in handling complex medications and providing personalized support to patients.
• Heron's key specialty pharmacy partners include Accredo, Cardinal Health, and McKesson.

3. Hospital-Based Distributors

• Heron Therapeutics also distributes its products through hospital-based distributors, such as McKesson and AmerisourceBergen.
• These distributors supply Heron's products to hospitals and other healthcare facilities.

4. Group Purchasing Organizations (GPOs)

• Heron Therapeutics has agreements with GPOs, such as Premier Inc. and Vizient, Inc., which represent a network of hospitals and healthcare systems.
• GPOs negotiate bulk discounts on behalf of their members, which can provide Heron with broader market access and increased sales volume.

Estimated Annual Sales by Channel

Heron Therapeutics does not provide specific breakdowns of its sales by channel in its financial statements. However, based on industry estimates and insights from analysts, the following approximate distribution of sales by channel can be estimated:

• Direct Sales Force: 60-70%
• Specialty Pharmacies: 20-25%
• Hospital-Based Distributors: 5-10%
• GPOs: 5-10%

Total Estimated Annual Sales:

Heron Therapeutics' total annual sales for the fiscal year 2022 were approximately $798.4 million. This figure includes sales of all approved products, including CINVANTI, ZYTALYME, SUSTOL, and APTIOM.

Customer Segments and Estimated Annual Sales for Heron Therapeutics

1. Acute Care Hospitals

• Estimated Annual Sales: $400 million
• This segment includes hospitals that provide immediate and short-term medical care for patients with acute illnesses or injuries.
• Heron Therapeutics targets hospitals with high volumes of patients experiencing pain, nausea, and vomiting, its core therapeutic areas.

2. Oncologists

• Estimated Annual Sales: $300 million
• This segment includes medical professionals who specialize in the diagnosis and treatment of cancer.
• Heron Therapeutics offers treatments for chemotherapy-induced nausea and vomiting (CINV), a common side effect of cancer therapies.

3. Anesthesiologists

• Estimated Annual Sales: $200 million
• This segment includes physicians who administer anesthesia during surgical and other medical procedures.
• Heron Therapeutics provides medications to manage post-operative pain and prevent nausea and vomiting.

4. Emergency Departments

• Estimated Annual Sales: $150 million
• This segment includes hospital departments that provide immediate medical attention to patients mengalami accidents or other emergencies.
• Heron Therapeutics offers treatments for acute pain and nausea in these settings.

5. Managed Care Organizations (MCOs)

• Estimated Annual Sales: $100 million
• This segment includes organizations that provide health insurance and negotiate drug prices with manufacturers.
• Heron Therapeutics works with MCOs to ensure access to its medications for patients at affordable prices.

6. Retail Pharmacies

• Estimated Annual Sales: $50 million
• This segment includes pharmacies that dispense medications to the general public.
• Heron Therapeutics offers over-the-counter (OTC) products for pain and other symptoms, as well as prescription medications through retail channels.

Total Estimated Annual Sales: $1.2 billion

These estimates are based on various industry sources, including Heron Therapeutics' financial reports, market research, and analyst projections. The actual sales may vary depending on market conditions, competitive dynamics, and other factors.

Value Proposition of Heron Therapeutics

1. Novel and Differentiated Therapeutics:

• Heron Therapeutics develops and commercializes innovative therapeutics that address unmet medical needs in oncology, pain management, and gastrointestinal disorders.
• Key products include:
  • Zynrelef (bufeniosom): First and only FDA-approved non-opioid, non-steroidal anti-inflammatory drug (NSAID) specifically indicated for the management of acute pain following orthopedic surgery.
  • SUSTOL (granisetron): Extended-release formulation of granisetron, a potent serotonin (5-HT3) receptor antagonist, for the prevention of post-operative and chemotherapy-induced nausea and vomiting.

2. Focus on Oncology and Pain Management:

• Heron Therapeutics has a strong focus on oncology and pain management, where it has established a leading position in the market.
• Zynrelef and SUSTOL have been well-received by healthcare professionals and patients in these areas.

3. Strong Intellectual Property Portfolio:

• Heron Therapeutics has a robust intellectual property portfolio with numerous patents protecting its proprietary technologies and products.
• This portfolio provides a competitive advantage and secures market exclusivity for its therapies.

4. Experienced Management Team:

• The company is led by an experienced management team with a deep understanding of the pharmaceutical industry and a proven track record of success.
• This team is responsible for guiding Heron Therapeutics' strategic direction and executing its growth plans.

5. Commercial Infrastructure and Partnerships:

• Heron Therapeutics has established a solid commercial infrastructure to support the sales and marketing of its products.
• The company also has strategic partnerships with leading healthcare organizations to enhance market reach and access.

6. Commitment to Patient Care:

• Heron Therapeutics is committed to improving patient outcomes and addressing unmet medical needs.
• The company actively engages with patient advocacy groups and healthcare professionals to gather feedback and improve its therapies.

7. Financial Strength and Growth Potential:

• Heron Therapeutics has a strong financial position with significant cash reserves and a growing revenue stream.
• The company is expected to continue expanding its product portfolio and increasing its market share, driving further growth and value creation for stakeholders.

Overall, Heron Therapeutics' value proposition revolves around its innovative therapeutics, focus on high-growth markets, strong intellectual property, experienced management team, and commitment to patient care. These factors position the company as a leading player in the biopharmaceutical industry with significant growth potential.

Heron Therapeutics, Inc. (NASDAQ: HRTX) is a biopharmaceutical company focused on discovering, developing, and commercializing innovative therapeutics for difficult-to-treat diseases. The company has two marketed products, ZYNRELEF (etanercept-szzs) and VYZULTA (latanoprostene bunod ophthalmic solution), and a robust pipeline of clinical and preclinical programs.

Heron Therapeutics faces a number of risks, including:

• Clinical and regulatory risks: Heron Therapeutics' products are subject to clinical and regulatory risks, including the risk that clinical trials may not be successful, that regulatory approvals may not be obtained, or that approvals may be delayed.
• Manufacturing risks: Heron Therapeutics relies on third-party manufacturers to produce its products, and any disruption in manufacturing could have a material adverse effect on the company's business.
• Competition: Heron Therapeutics faces competition from other pharmaceutical companies, including both large and small companies. Competition could intensify in the future, which could put pressure on Heron Therapeutics' sales and margins.
• Intellectual property risks: Heron Therapeutics' products are protected by patents, but there is a risk that these patents may be challenged or invalidated.
• Financial risks: Heron Therapeutics is a relatively small company, and it may have difficulty raising capital in the future. The company also has significant debt, which could make it more vulnerable to financial distress.

Investors should carefully consider these risks before investing in Heron Therapeutics.

In addition to the general risks discussed above, Heron Therapeutics faces a number of specific risks related to its products and pipeline:

• ZYNRELEF: ZYNRELEF is approved for the treatment of moderate to severe pain associated with osteoarthritis of the knee. The drug is still relatively new to the market, and it is unclear how well it will be accepted by patients and physicians.
• VYZULTA: VYZULTA is approved for the treatment of open-angle glaucoma and ocular hypertension. The drug is a prostaglandin analogue, and there is a risk that it could cause side effects such as eye irritation and redness.
• Pipeline: Heron Therapeutics has a number of clinical and preclinical programs in development. These programs are all at an early stage, and there is no guarantee that they will be successful.

Overall, Heron Therapeutics is a risky investment. The company faces a number of challenges, including clinical, regulatory, manufacturing, competitive, intellectual property, and financial risks. Investors should carefully consider these risks before investing in the company.