Heron Therapeutics, Inc.

I thought it might be helpful to give some insight into the business as a whole and a view into the strategic direction as we move forward. Since joining the company, I have spent much of my time trying to understand each department, headcount, spend, and how the company functions as a unit. The goal has been to do a thorough internal review to determine the company's business practices and strategies to develop a long-term plan that allows the company to maximize value for all shareholders. Although my review is not complete, I can tell you that I have a much better understanding of the company and many changes will be coming soon, including a reduction of cash burn, an improvement of operational efficiency, and the implementation of a realistic product forecast to more accurately determine our capital requirements moving forward. Shortly after I joined the company, I implemented the first major change, which was to flatten the executive reporting structure in the company. I hired Jason Grilio, whom I have worked with in the past, to lead our sales and marketing efforts. Jason will be improving many things with the commercial structure, including targeting, alignment, account team support, marketing message, and data to the Salesforce and management reporting. I believe these changes and many others to be updated later will continue to improve the uptake of our products. Other expense cuts we'll be implementing include less outsourcing, and dependency on consultants and a reduction in headcount. Again, I will provide more detail in the near future. As you know, I've been assessing all aspects of our business to ensure we are well positioned for the future. I recognize that this process may be causing some uncertainty and concern among our shareholders. We are committed to providing you with as much information as possible about the strategic direction changes that will be coming. We understand that you've invested your time and resources in our company, and we value your input and support. We want to keep you informed every step of the way as we navigate this process. We plan to share more details with you soon about the changes we will implement and the reasons behind them. Our goal is to create a stronger, more sustainable company that is better equipped to meet the needs of our customers and stakeholders. I appreciate your patience and understanding as we work through this process. We are confident that our changes will position us for long-term success, and we look forward to sharing more information with you soon. Go ahead, David. Thank you, Craig.

As Craig mentioned in his remarks, our net product sales for the first quarter of 2023 were 29.6 million, compared with 23.5 million in the first quarter of 2022, representing an increase of 26% over the same period in 2022. For the first quarter of 2023, Our Zinroleps nev product sales were 3.5 million. In March 2023, Oponvy became commercially available in the US. For the first quarter of 2023, Oponvy nev product sales were 244,000. Our oncology care franchise nev product sales for the first quarter were 25.8 million, which was an increase of 15% over the same quarter in the prior year. For the full year 2023, we expect oncology care franchise net product sales of $99 million to $103 million. Cost of product sales for the first quarter of 2023 were $16.9 million, compared to $11.4 million for the same period in 2022. For Q1 2023, cost of product sales included a one-time charge of $5.3 million, resulting primarily from the write-off of short-dated Zinrelif inventory. Research and development expense decreased from $42.1 million in Q1 2022 to $13.8 million for the first quarter of 2023, primarily due to a decrease in external development costs related to Zinrelif. Our sales and marketing expense decreased slightly from $23.4 million in Q1 2022 to $21.2 million for the first quarter of 2023, primarily due to a decrease in costs to support the ongoing commercialization of Zinrolef. We are reporting a loss from operations of 33.1 million for the first quarter of 2023, which compares to an operating loss of 62.9 million for Q1 2022. Our balance sheet at the end of March 2023 shows a cash balance of 60 million, down from 84.9 million at the end of December 2022. Craig, back to you. Thanks, David.

Operator, we'd now like to open things up for questions, and go ahead, please.