Heron Therapeutics, Inc.

Good day and thank you for standing by. Welcome to the Heron Therapeutics Q1 2025 conference call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. I would now like to hand the conference over to your speaker today. Melissa Jarrell, Executive Director of Legal at Heron.

Thank you, operator, and good morning, everyone. Thank you for joining us on the Heron Therapeutics conference call this morning to discuss the company's financial results for the quarter ended March 31st, 2025. With me today from Heron are Craig Collard, Chief Executive Officer, Ira Duarte, Executive Vice President, Chief Financial Officer, Bill Forbes, Executive Vice President, Chief Development Officer, and Kevin Werner, Senior Vice President, Medical Affairs Strategy and Engagement. For those of you participating via conference call, slides are made available via webcast and can also be accessed via the Investor Relations page of our website following the conclusion of today's call. Before we begin, let me quickly remind you that during the course of this conference call, the company will make forward-looking statements. We caution you that any statement that is not a statement of historical fact is a forward-looking statement. This includes remarks about the company's projections, expectations, plans, beliefs, and future performance, all which constitute forward-looking statements for the purposes of the safe harbor provision under the Private Security Litigation Reform Act of 1995. These statements are based on judgment and analysis as of the date of this conference call. and are subject to numerous important risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties associated with the forward-looking statements made in this conference call and webcast are described in the Safe Harbor Statement in today's press release and in Heron's public periodic filings with the SEC. Except as required by law, Heron assumes no obligation to update these forward-looking statements to reflect future events or actual outcomes and does not intend to do so. And with that, I would now like to turn the call over to Craig Collard, Chief Executive Officer of Heron.

Thanks, Melissa. Good morning, everyone, and welcome to Heron Therapeutics' first quarter 2025 earnings call. Today, we are extremely excited to share our results for the first quarter of 2025. After establishing the company's financial foundation in 2024, we are now focused on targeted product growth for our two key assets, ZENERLEF and APONTE, while continuing to maintain and grow Sylvante and Sustol within clinics and select hospital accounts. With ZENERLEF's formulary status now covering approximately 19% of all orthopedic procedures and key catalysts such as our expanded label, the VAN launch, the approval of the No Pain Act, and the Crosslink Partnership, we see a clear opportunity to drive deeper adoption in a market where we already have access and the potential to expand coverage as interest grows nationwide. In 2025, we will focus on discipline execution, optimizing commercial performance, and selectively expanding the team where it directly supports high return growth opportunities. Looking at our achievements in Q1, we generated total net revenues of approximately $39 million, achieved a record quarterly adjusted EBITDA of $6.2 million, and reported net income of $2.6 million. Since joining the company in 2023, our management team has been clear in our commitment to not only reach profitability, but also to execute with consistency. In addition, we reached a settlement agreement with Mylan Pharmaceuticals regarding the Sinvanti and Aponvi products, avoiding costly litigation fees, and removing uncertainty around the outcome of the litigation. Lastly, as we continue advancing our commercial plans, hiring the right commercial leader was a key priority. We're pleased to share that Mark Hensley joined us on April 28th. Mark, who previously worked with me at Biloxis as our commercial lead, brings deep expertise from a career spent entirely in the hospital market. He is the missing piece to the puzzle as we move into this next phase of growth. Now moving on to product performance. The Oncology franchise continues to outperform our expectations, with combined net revenues from Sinvanti and Sustol reaching $28.6 million for the quarter. We have maintained market share in a highly competitive environment, and we believe these products will continue to deliver consistent performance throughout 2025. We are extremely pleased with the results of our oncology supportive care franchise, and we are actively exploring creative strategies to drive continued growth in this market. Sinvanti, our lead product for chemotherapy-induced nausea and vomiting, or CINV, continues its strong growth. While I spoke earlier about the overall oncology franchise, you can see on the left side of this slide that Sinvanti is steadily increasing in average daily units, even within a highly competitive market. Now that the company is commercializing Sinvanti through a more focused account team across our entire portfolio, we are seeing positive results. New accounts shown in green on the graph and defined as those who have ordered within the past three months are growing at a healthy rate and benefited from the IV bag shortage in October of last year, as reflected in the spike on the graph. Existing accounts depicted by the blue line and defined as those with continuous product orders are also experiencing steady growth since the new management team joined in April of 2023. Synvonte's well-established safety profile and competitive advantages, such as the IV push administration, support its continued upward trajectory and unit growth. The key to sustaining consistency with this product will be the strategic management of our average selling price, or ASP. Now moving on to the acute hospital side of our business. Both Aponvi and Zenerlef experienced significant growth in Q1 of 2025, up over 432% and 60% respectively compared to the same period last year. We believe these two products have significant growth opportunity. Building on our efforts to strengthen our financial foundation last year, including a significant cost restructuring and the completion of numerous strategic initiatives, the full focus of the organization will emphasize product growth and execution this year. Today, the company is well-positioned for sustainable, scalable, and capital-efficient growth. With UponV, we are beginning to see a dramatic shift in key trends, particularly in average daily units and the number of ordering accounts. We believe this growth will continue throughout 2025 and beyond as our pull-through efforts drive expanded product adoption within hospital institutions. Our goal with UponV is to continue building awareness, focusing our message on its strong safety profile and unique mechanism of action. Postoperative nausea and vomiting, or PONV, is a serious issue that can often be mitigated by the addition of a PONV as the provider's third agent of choice in a multimodal approach to PONV therapy for moderate to severe cases. A similar positive trend is emerging with ZENRLEF. Our daily unit sales are steadily increasing, and we are onboarding new accounts at a much faster rate than in the past. With the VAN launch just getting underway and the Crosslink partnership fully integrated, we believe ZENERLEF is positioned to show a significantly stronger growth trajectory as we approach Q3 and beyond. Many of the current initiatives around ZENERLEF are already in motion, but require time to take full effect. As both daily unit volumes and the number of ordering accounts continue to rise, we remain confident in ZMLF's multi-hundred million dollar potential, provided we can continue to improve execution and expand usage within our existing access points. Our top priority for 2025 is discipline execution, converting access into sustained case-level market share, optimizing our current commercial footprint, and selectively investing in team expansion where it directly supports high return growth opportunities. I will now turn the call over to Ira Duarte, our CFO, to cover our financials and update our financial guidance. Go ahead, Ira.