Heron Therapeutics : Investor Day Presentation

Heron

Therapeutics, Inc.

Investor Day

May 15th, 2024

Forward-looking Statements and non-GAAP Disclosures

This presentation contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. We caution investors that forward- looking statements are based on management's expectations and assumptions as of the date of this news release and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, but not limited to, uncertainties related to market conditions; the potential market opportunities for ZYNRELEF®, APONVIE®, CINVANTI® and SUSTOL®; the net product sales guidance for the oncology care franchise and the acute care franchise; the EBITDA guidance provided by the Company; the results of the commercial launch of APONVIE; the timing of the FDA's review process and whether the FDA approves the sNDA for ZYNRELEF to further expand the U.S. label; the potential additional market opportunity for the expanded U.S. label for ZYNRELEF, if approved; the timing of the Company's development of the VAN program; the timing of the Company's submission of the PAS to the FDA for the VAN; the timing of the FDA's review process and whether the FDA approves the PAS for the VAN; the outcome of the Company's pending ANDA litigation related to CINVANTI; whether the Company is required to write-off any additional inventory in the future; the expected future balances of Heron's cash, cash equivalents and short-term investments; the expected duration over which Heron's cash, cash equivalents and short-term investments balances will fund its operations and the risk that future equity financings may be needed; any inability or delay in achieving profitability; and other risks and uncertainties identified in the Company's filings with the U.S. Securities and Exchange Commission. Forward-looking statements reflect our analysis only on their stated date, and Heron takes no obligation to update or revise these statements except as may be required by law.

In addition to the company's financial results determined in accordance with U.S. GAAP, the company provides non-GAAP measures that it determines to be useful in evaluating its operating performance and liquidity. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company's core operating results and comparison of operating results across reporting periods. Management uses non-GAAP financial measures to establish budgets, manage the Company's business, and set incentive and compensation arrangements. The company presents adjusted EBITDA and adjusted operating expenses. The Company has not provided a reconciliation of its full-year 2024 guidance for adjusted EBITDA or adjusted operating expenses to the most directly comparable forward-looking GAAP measures, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, because the Company is unable to predict, without unreasonable efforts, the timing and amount of items that would be included in such a reconciliation, including, but not limited to, stock-based compensation expense, acquisition related expense and litigation settlements. These items are uncertain and depend on various factors that are outside of the Company's control or cannot be reasonably predicted. While the Company is unable to address the probable significance of these items, they could have a material impact on GAAP net income and operating expenses for the guidance period.

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Heron Therapeutics, A Year Ago

• Heron entered into a cooperation agreement with Rubric and Velan on February 22, 2023 and announced changes to the management team and Board shortly thereafter
• Heron had seen success with the oncology franchise which established the company's commercial footprint, but faced headwinds launching ZYNRELEF® despite clinical differentiation, meaningful patient impact and a compelling value proposition
• Discipline around financial management and spending had been lacking…ACCOUNTABILITY!
• Ultimately, the people, passion and potential for this company is why I'm here

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Positioned for Success Through Key Accomplishments

New management's strategy promises transformative impact on commercial optimization

2023-2024

New Product Launch

U.S. Commercial launch of

APONVIE®

New Executive Team Additions

Ira Duarte as Chief Financial Officer

Bill Forbes as EVP, Chief Development Officer Ryan Craig, VP of Marketing

David Barozzino, VP of Sales

Kevin Warner, PharmD, VP of Medical Affairs Melissa Jarel, Executive Director of Legal

Strengthened Financial Position

Gross margin improvement from the 50% range historically to over 70%

Completed capital raise - $30M in Equity and $50M in debt, pulled down $25M ($55M in total)

Expanded Indication for ZYNRELEF

Expanded label almost doubled ZYNRELEF opportunity to ~13M procedures

New CEO and New Chair

Appointment of Craig Collard as CEO. In addition, the Board appointed Adam Morgan as Chairman

Cost-cutting measures in place

Operating expenses (excluding stock compensation and depreciation and amortization) reduced from $182M (2022), $135M (2023), $108-116M (2024)

Signed Deal with CrossLink Life Sciences, LLC

Expanding ZYNRELEF promotion with distributor partnership building to ~650 representatives by the end of 2024

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Heron Management Team

Experienced team with a track record of developing and commercializing innovative products

Craig Collard	Ira Duarte	Bill Forbes, PharmD	Kevin Warner, PharmD
Chief Executive Officer	Chief Financial Officer	EVP, Chief	Sr. VP, Medical Affairs
		Development Officer	Strategy and Engagement

Robert Sullivan	Ryan Craig	David Barozzino	Melissa Jarel
Sr. VP, Oncology	VP, Marketing	VP of Sales, Acute Care	Executive Director, Legal

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Select Financial Results

In $K		Q1 2024		Q1 2023
Net product sales			34,670			29,615
Cost of product sales			8,444			16,854
Gross profit			26,226			12,761
Operating expenses:
Research and development			4,608			8,836
General and administrative			14,974			15,834
Sales and marketing			11,442			21,154
Total operating expense			31,024			45,824
Loss from Operations			(4,798)			(33,063)
Cash	$	71,524	$	60,022

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Reaffirm 2024 Guidance

$M	2024
Revenues	$138M- $158M
Gross Profit	$94M - $111M
Gross Margin	70%+
Cash OpEx	$108M - $116M
EBITDA (excluding stock compensation)	$(22M) - $3M

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Heron, What We Plan to Accomplish Today!

• Clinically differentiate our product portfolio
• Offer a line of site to market potential
• Review the CrossLink advantage and the market impact now, and in the future
• Update for our key development programs for ZYNRELEF, the Vial Access Needle (VAN) and Pre-filled Syringe (PFS)
• Provide insight into our continual consistency of the oncology franchise

More importantly, get to know the special people on this team and how we work

as one to drive shareholder value

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Delivering on Commitments

Ryan Craig, VP of Marketing, Heron Therapeutics

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Our Portfolio Truly Impacts Patient Outcomes

At Heron, we understand what is at stake for patients, their caregivers, and families, which is why we are laser-focused on providing solutions that can address unmet medical needs so they can spend more time doing the things that matter with the people who matter.

Oncology Care

We're focused on elevating the standard of care- developing solutions that help patients and enable oncologists to manage and reduce the negative side effects that commonly go along with cancer treatments

Acute Care

In a radically changing healthcare environment, we are currently applying our innovative science and technologies to provide patients and healthcare providers with better ways to reduce postoperative pain and prevent postoperative nausea and vomiting

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