Heron Therapeutics, Inc. (HRTX): Business Model Canvas [Dec-2025 Updated]

You're digging into Heron Therapeutics, Inc.'s business model right now to see if the recent turnaround story holds water, and honestly, the answer is in the numbers from their Acute Care franchise. The whole strategy hinges on ZYNRELEF-which saw $\mathbf{49\%}$ year-over-year sales growth in Q3 2025-and APONVIE's massive $\mathbf{173\%}$ jump, all feeding into that $\mathbf{\$153}$ million to $\mathbf{\$163}$ million net revenue guidance for the full year. This company is making a focused pivot. We'll map out the nine core elements, from their patented Biochronomer® technology moat to the high cost of their specialized manufacturing, so you can see exactly where the near-term opportunity lies and what actions their reorganized sales teams are taking to capture it.

Heron Therapeutics, Inc. (HRTX) - Canvas Business Model: Key Partnerships

You're looking at the structure that supports Heron Therapeutics, Inc.'s commercial reach and product supply, which is critical for scaling ZYNRELEF and maintaining the oncology franchise. Honestly, these external relationships are where a lot of the operational leverage comes from.

Co-promotion Agreement with Crosslink Network, LLC for ZYNRELEF Sales

Heron Therapeutics, Inc. entered into a five-year Co-Promotion Agreement with Crosslink Network, LLC (Crosslink) on January 5, 2024, to co-promote ZYNRELEF in the United States, focusing heavily on orthopedic indications. This partnership was designed to rapidly expand promotional reach. The agreement stipulated specific staffing targets: Crosslink committed to having at least 650 sales representatives promoting the Product within the United States by January 1, 2025, and continuing thereafter throughout the term. Compensation for Crosslink is structured on a fixed-fee per vial basis, contingent on sales growth over a pre-determined baseline period. This structure directly ties the partner's incentive to the commercial success of ZYNRELEF.

This sales expansion effort is clearly paying off, as Heron Therapeutics, Inc. noted that ZYNRELEF Net Revenue grew 49% in the third quarter of 2025 compared to the third quarter of 2024. That's real momentum.

Major Pharmaceutical Distributors

Heron Therapeutics, Inc.'s products are distributed in the U.S. through a limited number of specialty distributors and full-line wholesalers that resell to healthcare providers and hospitals. While specific ongoing contracts with major national distributors like AmerisourceBergen or Cardinal Health are not detailed in the latest public disclosures, the company relies on this established infrastructure for product availability. The Crosslink partnership, however, is a targeted enhancement of the sales network, adding approximately 650 representatives to drive adoption, which complements the existing distribution channels.

Contract Manufacturing Organizations (CMOs) for Product Supply and Scale

Securing reliable supply is non-negotiable, and Heron Therapeutics, Inc. solidified a key manufacturing relationship in August 2025. The company entered a Framework Agreement with Patheon Austria GmbH & Co KG (Patheon). Under this agreement, Patheon will manufacture and supply specified quantities of certain products. To ensure supply chain stability, Heron Therapeutics, Inc. has made a firm commitment to purchase 38,400 kg of Products through December 31, 2026. This agreement also serves to consolidate and amend prior manufacturing and supply terms, simplifying the contractual landscape.

For context, prior agreements, such as the Commercial Manufacturing Services Agreement for SUSTOL®, were in place with Lifecore Biomedical, LLC as far back as 2015.

License Agreement with Mylan Pharmaceuticals, Inc. for Generic Entry in 2032

Heron Therapeutics, Inc. resolved patent litigation with Mylan Pharmaceuticals, Inc. (a Viatris Inc. company) in May 2025. The settlement grants Mylan a license to market generic versions of CINVANTI® and APONVIE® in the United States beginning June 1, 2032, or earlier under certain customary circumstances. This is significant because Heron's Orange Book-listed patents for these products are set to expire in 2035. In exchange for this early entry concession, Heron Therapeutics, Inc. will receive royalties on any sales made by Mylan. This de-risks the litigation and provides a defined revenue stream post-generic entry.

National Academy of Medicine (NAM) Action Collaborative on Opioid Epidemic

Heron Therapeutics, Inc. joined the National Academy of Medicine's (NAM) Action Collaborative on Countering the U.S. Opioid Epidemic back in May 2019. At that time, Heron was the sole pharmaceutical industry representative. This partnership underscores the company's strategic focus on non-opioid alternatives like ZYNRELEF. This focus is supported by recent policy changes; the Non-Opioid Policy for Pain Relief took effect on April 1, 2025, providing separate payment for non-opioids like ZYNRELEF by the Centers for Medicare & Medicaid Services (CMS).

Here's a quick look at the commitment timelines and financial anchors for these key external relationships:

The structure of these partnerships highlights a dual focus for Heron Therapeutics, Inc. as of late 2025:

• Secure commercial lift for ZYNRELEF via the Crosslink team.
• Ensure long-term supply certainty via the Patheon Framework Agreement.
• Protect oncology revenue streams while setting a 2032 generic entry date with Mylan.
• Align commercial strategy with policy tailwinds supporting non-opioids.

Finance: draft 2026 budget impact analysis for royalty payments starting June 2032 by next Tuesday.

Heron Therapeutics, Inc. (HRTX) - Canvas Business Model: Key Activities

You're looking at the core engine driving Heron Therapeutics, Inc.'s current financial performance and future strategy, which centers on aggressively pushing its acute care portfolio while managing operational efficiency. Here's the breakdown of the required Key Activities, grounded in the latest numbers.

Commercialization and sales acceleration of ZYNRELEF and APONVIE

The primary activity here is driving adoption for the Acute Care franchise, which is showing significant year-over-year acceleration. Management reaffirmed the full-year 2025 Net Revenue Guidance to a range of $153 million - $163 million. This is supported by strong quarterly results and targeted commercial execution.

The performance metrics for the key products in the third quarter of 2025 highlight this growth:

To fuel this, Heron launched a reorganized, dedicated ZYNRELEF sales team in Q3 2025, alongside enhanced distributor incentives, including a per-unit compensation program running through the end of 2025. ZYNRELEF Demand Units grew 30% between Q3 2024 and Q3 2025, reaching an average of 1,127 Daily Units in Q3 2025. The APONVIE dedicated sales team also launched in Q3 2025 to support its adoption.

Manufacturing and supply chain management for four commercial products

Heron Therapeutics, Inc. manages the supply chain for its four commercial products. A key operational step was securing future supply through a Framework Agreement signed in August 2025 with Patheon Austria GmbH & Co KG. This agreement solidifies manufacturing, stability studies, and warehousing services.

• Committed purchase volume under the Framework Agreement: 38,400 kg of Products.
• Commitment duration: Through December 31, 2026.

This activity consolidates prior agreements, simplifying the contractual relationship governing the supply of its commercial portfolio.

Research and development (R&D) for next-generation formulations like the ZYNRELEF Prefilled Syringe

R&D focus remains on advancing next-generation delivery systems for ZYNRELEF. The company completed the transition to the Vial Access Needle (VAN) device for product preparation in Q3 2025. The development for the ready-to-use Prefilled Syringe (PFS) is progressing, with projected approval anticipated in 2027. For context on historical investment, R&D expenditure in 2023 was $94.3 million.

Regulatory affairs and securing favorable reimbursement policies (e.g., J-code)

Securing favorable reimbursement is a critical activity, especially for ZYNRELEF. The Centers for Medicare & Medicaid Services (CMS) granted a permanent, product-specific J-code for ZYNRELEF, effective October 1, 2025, which streamlines billing across CMS and commercial payers. Furthermore, ZYNRELEF was included in the proposed 2025 Non-Opioid Policy for Pain Relief (NOPAIN Act) under the Medicare hospital Outpatient Prospective Payment System (OPPS) and Ambulatory Surgical Center (ASC) payment system, effective April 1, 2025.

The terms under the Proposed Rule for 2025 mean Medicare payments for ZYNRELEF will remain at average sales price plus six percent, without the prior offset reduction. Separately, Heron reached a settlement regarding CINVANTI and APONVIE patent litigations, setting an agreed generic market entry date of June 1, 2032.

Streamlining operations and executing the cost reduction plan

Operational streamlining is evidenced by the execution of a cost reduction plan initiated in 2023, which targeted total cash savings of $75 million through 2025. This plan included a 25% reduction in the employee base. The expected savings breakdown is:

• Operational savings: $45 million.
• Savings from reduced external spend (vendor renegotiation): $31 million.

The success of this operational discipline is reflected in the non-GAAP financial guidance. Heron reaffirmed its full-year 2025 Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) Guidance to a range of $9.0 million - $13.0 million. Year-to-date through Q3 2025, the company delivered an Adjusted EBITDA of $7.9 million. The product gross profit for the three months ended June 30, 2025, was $27.3 million, representing 73.5% of net revenue for that period. As of September 30, 2025, cash, cash equivalents, and short-term investments stood at $55.5 million. The company also has significant tax attributes, reporting approximately $1.37 billion of U.S. federal Net Operating Loss carryforwards as of December 31, 2024.

Heron Therapeutics, Inc. (HRTX) - Canvas Business Model: Key Resources

You're looking at the tangible assets Heron Therapeutics, Inc. (HRTX) relies on to execute its commercial strategy as of late 2025. These aren't abstract concepts; they are hard numbers and protected assets that drive the business.

The foundation of the technology portfolio is the Patented Biochronomer® drug delivery technology, which underpins key products like ZYNRELEF. While the core technology patent lifespan isn't explicitly detailed here, the commercial strength is evident in the product performance and IP agreements surrounding the portfolio.

The company's current commercial strength is anchored by its four FDA-approved products, with significant financial performance reported for the third quarter of 2025:

The Acute Care franchise, driven by ZYNRELEF and APONVIE, generated net revenue of $12,347 thousand for the three months ended September 30, 2025, marking a 67.2% increase year-over-year. Overall, Heron generated total net revenue of $38.2 million for Q3 2025, with year-to-date revenue reaching $114.3 million.

Regarding the commercial infrastructure, Heron has deployed focused sales efforts. You can see the tangible results of this resource allocation:

• A reorganized, dedicated ZYNRELEF sales team launched in Q3 2025.
• Momentum is building with the newly launched dedicated sales team for APONVIE, also in Q3 2025.

This sales force structure supports the Acute Care franchise, which saw APONVIE net revenue grow 173% in Q3 2025.

The intellectual property (IP) provides a defined runway for key assets. Specifically, a settlement with Mylan Pharmaceuticals, Inc. established a license for generic versions of CINVANTI and APONVIE to enter the U.S. market beginning June 1, 2032, or earlier under certain conditions. This sets a clear, later-than-2032 boundary for generic competition on those two products, protecting their revenue streams for the foreseeable future.

Finally, the financial resources available to sustain operations and commercial expansion as of the end of the third quarter were:

Cash, cash equivalents, and short-term investments totaled $55.5 million as of September 30, 2025. This balance followed debt and equity transactions completed in the three months ended September 30, 2025, which added $13.1 million to the cash balance.

Heron Therapeutics, Inc. (HRTX) - Canvas Business Model: Value Propositions

You're looking at the core value Heron Therapeutics, Inc. (HRTX) delivers to the market as of late 2025. It's all about specialized, high-value products in acute care and oncology support, with clear financial metrics backing up the claims.

ZYNRELEF offers non-opioid, extended-release postsurgical pain relief, promising efficacy for up to 72 hours. The commercial traction is clear in the numbers; ZYNRELEF Net Revenue grew 49% in the three months ended September 30, 2025, compared to the same period in 2024, with the nine-month growth also hitting 49%. Unit demand showed sequential strength, increasing 6.3% in Q2 2025 over Q1 2025. The expanded label indications mean ZYNRELEF is now appropriate for an estimated 17 million annual targeted procedures.

The value proposition for APONVIE centers on being the first and only IV aprepitant for preventing Postoperative Nausea and Vomiting (PONV). This product is gaining significant traction, with Net Revenue increasing 173% in the third quarter of 2025 compared to the third quarter of 2024. For the first nine months of 2025, APONVIE Net Revenue saw a 200% increase year-over-year. Unit demand grew 19% sequentially from Q1 to Q2 2025. This product addresses a common issue, as PONV affects approximately 30% of general surgical patients and up to 80% of high-risk patients.

The Oncology Care Franchise value is anchored by CINVANTI and SUSTOL for Chemotherapy-Induced Nausea and Vomiting (CINV) prevention. CINVANTI remains the primary revenue driver in this segment, accounting for 65% of the nine-month net product sales, totaling $73.8 million for the nine months ending September 30, 2025. Conversely, Heron is strategically winding down commercialization for SUSTOL, which saw its Q1 2025 net sales of $2.9 million represent a 21% decrease from Q1 2024.

Administrative and operational efficiencies are key value drivers for providers adopting the acute care portfolio. The Centers for Medicare & Medicaid Services (CMS) granted a permanent, product-specific J-code, J0688, for ZYNRELEF, effective October 1, 2025. This streamlines reimbursement alongside the separate payment status granted under the Non-Opioid Policy for Pain Relief, which is set to continue until at least the end of 2027. The payment limitation for ZYNRELEF under this policy is set at $2,267.26.

Product preparation is optimized through the ZYNRELEF Vial Access Needle (VAN), which launched in December 2024. This device is designed to simplify aseptic preparation, significantly reducing the withdrawal time for ZYNRELEF to between twenty and forty-five seconds. The transition to the VAN was expected to be completed in Q3 2025.

Here's a quick look at the revenue performance for the Acute Care Franchise, which delivered year-to-date revenue growth of 69.2% for the first nine months of 2025.

The Oncology Care Franchise, comprising CINVANTI and SUSTOL, generated combined net revenues of $55.1 million year-to-date as of Q2 2025. The overall 2025 Net Revenue guidance for Heron Therapeutics, Inc. was reaffirmed at $153 million to $163 million.

The value propositions are further supported by the following key product attributes:

• ZYNRELEF: Dual-acting local anesthetic combining bupivacaine and meloxicam.
• APONVIE: Delivered via a 30-second IV push, demonstrating rapid achievement of therapeutic drug levels.
• APONVIE: Included in the Fifth Consensus Guidelines for the Management of Postoperative Nausea and Vomiting.
• CINVANTI: Indicated for prevention of acute and delayed nausea and vomiting associated with highly emetogenic cancer chemotherapy (HEC).
• SUSTOL: Utilizes Biochronomer drug delivery technology to maintain therapeutic levels of granisetron for ≥5 days.

Finance: review the impact of the $11.3 million loss on debt extinguishment from the recent capital restructuring on Q4 2025 GAAP results by next Tuesday.

Heron Therapeutics, Inc. (HRTX) - Canvas Business Model: Customer Relationships

You're looking at how Heron Therapeutics, Inc. connects with the hospitals, ASCs (Ambulatory Surgical Centers), and the distributors who move their products. It's all about direct engagement and making the logistics of using their drugs as smooth as possible.

Dedicated sales force engagement with hospital and ASC pharmacy/surgical staff.

Heron Therapeutics, Inc. reorganized its commercial structure to focus on direct engagement. They launched a reorganized, dedicated ZYNRELEF sales team in Q3 2025. Also, the APONVIE team is described as seasoned and fully trained, leveraging the full range of Heron Therapeutics, Inc.'s resources to drive adoption within health systems and accounts achieved since launch.

Enhanced distributor incentive programs to drive product pull-through.

The company put in place enhanced distributor incentives in select accounts, targeting both formulary and high potential non-formulary accounts to accelerate adoption. This push directly correlated with performance; ZYNRELEF Net Revenue grew 49% in Q3 2025, as compared to Q3 2024.

Clinical education and onboarding support from a new Peri-Operative Clinical Educator Team.

While specific numbers for a dedicated Educator Team aren't public, the operational support for product use is clear. The transition to the Vial Access Needle (VAN) for ZYNRELEF was completed in Q3 2025, which optimizes product preparation, handling, and operating field sterility in hospitals and ASCs. This device change is a key part of the field support structure.

Direct support for reimbursement and formulary access.

A major step to ease customer friction was securing better payment terms. The permanent, product-specific J-code (J0688) for ZYNRELEF went live effective October 1, 2025. This is designed to streamline reimbursement and improve billing clarity across all payer types and settings of care. Furthermore, CMS reimbursement policies ensure separate pricing for ZYNRELEF until 2027.

Transactional sales model through major wholesalers.

The structure involves moving product through major wholesalers, which is evident in the revenue reporting and adjustments. For instance, a temporary wholesaler adjustment impacted Q2 2025 revenue figures. The overall commercial performance reflects this model, with Heron Therapeutics, Inc. reaffirming its 2025 Full-Year Net Revenue Guidance of $153 million - $163 million.

Here's a look at the commercial results tied to these customer relationship efforts through the third quarter of 2025:

The launch of the dedicated ZYNRELEF sales team happened in Q3 2025.

• ZYNRELEF unit demand grew 6.3% in Q2 2025 versus Q1 2025.
• APONVIE unit demand grew 19% in Q2 2025 versus Q1 2025.
• CINVANTI unit demand and Net Revenue increased 6% in Q3 2025 as compared to Q3 2024.

The company's cash position as of September 30, 2025, was $55.5 million.

Finance: draft 13-week cash view by Friday.

Heron Therapeutics, Inc. (HRTX) - Canvas Business Model: Channels

You're looking at how Heron Therapeutics, Inc. gets its products to the customer, which is all about the logistics and the people selling them. Here's the breakdown of the channels they use as of late 2025.

Direct sales force targeting hospitals and Ambulatory Surgical Centers (ASCs)

Heron Therapeutics, Inc. deploys dedicated teams to drive adoption across key sites of care. Commercial execution initiatives in 2025 included specific team structures and incentives.

• Launch of a reorganized, dedicated ZYNRELEF sales team in Q3 2025.
• The APONVIE team is fully trained, leveraging Heron Therapeutics' resources to drive adoption in health systems.
• The transition to the Vial Access Needle (VAN) for ZYNRELEF was completed in Q3 2025.

The commercial results from these channel efforts in the third quarter of 2025 show clear movement:

Major pharmaceutical wholesalers and Specialty distributors

Heron Therapeutics, Inc. relies on established networks to move its products from the manufacturing site to the point of care. They have also implemented programs to incentivize channel partners.

• ZYNRELEF is available through full-line wholesalers and specialty distributors.
• CINVANTI, SUSTOL, and APONVIE are accessible via major wholesalers and specialized distributors.
• Commercial initiatives include enhanced distributor incentives in select accounts to accelerate adoption.

Medicare/CMS reimbursement pathways

Reimbursement pathways are critical for access, especially for ZYNRELEF in the hospital outpatient and Ambulatory Surgical Center settings. The Centers for Medicare & Medicaid Services (CMS) policy dictates significant revenue flow.

The CMS policy for ZYNRELEF shifted in 2025:

• The existing pass-through payment status expired on March 31, 2025.
• ZYNRELEF was included in the proposed 2025 Non-Opioid Policy for Pain Relief under the Medicare hospital Outpatient Prospective Payment System (OPPS) and the Ambulatory Surgical Center (ASC) payment system, effective April 1, 2025.
• For calendar year 2025, CMS proposed that payments for qualifying drugs, like ZYNRELEF, will remain at average sales price plus six percent.
• For Medicare patients, ZYNRELEF is reimbursed separately in both the HOPD and ASC settings of care, billed using code J0668.

The Wholesale Acquisition Cost (WAC) pricing for ZYNRELEF as of July 1, 2025, is:

The overall commercial performance reflects these channel activities, with Heron Therapeutics, Inc. reaffirming its 2025 full-year Net Revenue Guidance to be between $153 million and $163 million.

Finance: draft 13-week cash view by Friday.

Heron Therapeutics, Inc. (HRTX) - Canvas Business Model: Customer Segments

You're looking at the specific groups that drive the revenue for Heron Therapeutics, Inc. (HRTX) as we move through late 2025. It's all about where their key products, ZYNRELEF and APONVIE, are being used in the US healthcare system.

The overall financial performance reflects the purchasing power of these segments. For instance, the Acute Care franchise, which serves the first two segments we'll discuss, saw revenue growth of 67.2% year-over-year in the third quarter of 2025.

The customer base is clearly segmented by the therapeutic area their products address.

US Hospitals and Ambulatory Surgical Centers (ASCs) for acute care products.

This segment is critical for ZYNRELEF, the extended-release local anesthetic, and APONVIE, the PONV treatment. The transition to the Vial Access Needle (VAN) for ZYNRELEF was completed in Q3 2025, optimizing use in these settings. Furthermore, the Centers for Medicare & Medicaid Services (CMS) granted a permanent, product-specific J-code for ZYNRELEF, effective October 1, 2025, which directly impacts billing clarity and reimbursement for both hospitals and ASCs.

Surgeons and Anesthesiologists focused on non-opioid postsurgical pain management.

These are the hands-on prescribers for ZYNRELEF. Adoption metrics show direct engagement within this group. The number of ordering accounts for ZYNRELEF grew from 705 to 833 between the third quarter of 2024 and the third quarter of 2025. Also, the average daily units sold increased by about 28% over the same period. This group is influenced by policies like the Non-Opioid Policy for Pain Relief, which took effect on April 1, 2025, ensuring separate payment for ZYNRELEF in hospital outpatient departments and ASCs.

Oncologists and Oncology Infusion Centers for CINV prevention products.

This group drives demand for the oncology franchise, including CINVANTI and SUSTOL. While the acute care segment is accelerating rapidly, this segment shows more stable, though still growing, demand. For example, CINVANTI unit demand and net revenue grew 6% compared to Q3 2024. In Q1 2025, CINVANTI and SUSTOL generated combined net revenues of $28.6 million.

Pharmacy and Therapeutics (P&T) Committees managing hospital formularies.

P&T Committees decide which drugs get placed on the official hospital formulary, which is a major gatekeeper for adoption. As of Q1 2025, ZYNRELEF was already on formulary for approximately 19% of orthopedic procedures. The dedicated APONVIE sales team, fully active in Q4 2025, is leveraging recent access wins to drive adoption within health systems.

Medicare and commercial payers influencing formulary coverage.

Payers determine the ultimate financial accessibility. The permanent CMS J-code for ZYNRELEF, effective October 1, 2025, is expected to streamline reimbursement for both CMS and commercial payers. Heron Therapeutics expected that most commercial payers would follow CMS policy regarding this new payment structure. The APONVIE dedicated sales team is leveraging recent access wins that collectively represent approximately 4 million of the estimated 35 million annual surgical patients at moderate to high risk for PONV in the U.S. as of July 1, 2025.

Finance: draft 13-week cash view by Friday.

Heron Therapeutics, Inc. (HRTX) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive the operations at Heron Therapeutics, Inc. as of late 2025. For a commercial-stage biotech, the cost structure is heavily weighted toward getting the product to the customer and funding future innovation, so you see significant spending in Sales & Marketing and R&D, even while streamlining.

Cost of product sales remains a high component due to the specialized nature of manufacturing their therapeutics. For the third quarter of 2025, the Cost of Sales hit $11.9 million, reflecting the complexity involved in producing their portfolio, including ZYNRELEF and the oncology supportive care drugs.

The company supports its commercial efforts with significant Selling and Marketing (S&M) expenses. This spending is necessary to support the dedicated sales teams for products like ZYNRELEF and APONVIE, especially following the reorganization of the ZYNRELEF sales team in Q3 2025.

Research and Development (R&D) expenses, while streamlined compared to earlier periods, are still a necessary investment for pipeline progression, such as the ZYNRELEF Prefilled Syringe projected for an early 2027 launch. For the first quarter of 2025, R&D spending was reported at $2.3 million.

Financing costs are influenced by the recent capital restructuring completed in August 2025. The debt load was actively managed, moving from approximately $175 million in principal debt outstanding at the end of Q1 2025 (comprising the Hercules loan and senior convertible notes) down to a new structure with total debt of approximately $145 million following the August refinancing, which included repaying $125 million in cash and converting $25 million of notes to stock.

The General and Administrative (G&A) overhead includes the costs of running the corporate functions. Furthermore, the company recently resolved a major overhang, reaching a settlement with Mylan Pharmaceuticals, Inc. regarding CINVANTI and APONVIE patent litigations, which resulted in lower expected legal spend for the remainder of 2025.

Here's a look at the quarterly operating expense breakdown for Q1 2025 and the most recent Q3 2025 figures, showing the scale of these cost centers:

The key cost drivers in the operating expenses are:

• S&M spending was $12.311 million in Q1 2025 and rose to $12.942 million in Q3 2025, supporting commercial teams.
• G&A expenses were $12.702 million in Q1 2025, increasing to $13.980 million in Q3 2025.
• The Mylan settlement provided clarity and is expected to reduce future legal spend.

Finance: draft 13-week cash view by Friday.

Heron Therapeutics, Inc. (HRTX) - Canvas Business Model: Revenue Streams

You're looking at how Heron Therapeutics, Inc. converts its products into dollars, which is the core of its Revenue Streams block in the Business Model Canvas. This is all about the net product sales from their two main franchises.

The Acute Care franchise is definitely the primary growth engine right now. This is where ZYNRELEF and APONVIE live, and the numbers show serious acceleration. The company reiterated its full-year 2025 Net Revenue Guidance to be between $153 million and $163 million.

The Oncology franchise, featuring CINVANTI and SUSTOL, is positioned to provide that stable base revenue. While the Acute Care segment is surging, the Oncology segment showed a more modest year-over-year growth of 1.7% in Q3 2025.

Here's a look at the key revenue drivers from the latest reported quarter:

• Net product sales from the Acute Care franchise (ZYNRELEF, APONVIE) are the main focus for near-term expansion.
• Net product sales from the Oncology franchise (CINVANTI, SUSTOL) offer a consistent revenue floor.
• Full-year 2025 Net Revenue Guidance is set at $153 million to $163 million.

The growth story in the Acute Care segment is quite clear when you look at the individual product performance for the third quarter of 2025:

The overall Acute Care Franchise saw revenue growth of 67.2% year-over-year in Q3 2025. That's a big jump.

For the Oncology franchise, the numbers reflect a more mature revenue base:

• CINVANTI unit demand and Net Revenue increased 6% in Q3 2025 as compared to Q3 2024.
• SUSTOL contributes to the stable base, though specific Q3 2025 net sales figures aren't detailed here, its presence alongside CINVANTI defines this revenue pillar.

Honestly, the revenue stream is clearly pivoting toward the newer acute care assets, but the established oncology products are still pulling their weight to keep the lights on while the growth products scale. Finance: draft 13-week cash view by Friday.