Heron Therapeutics, Inc. (NASDAQ: HRTX), a commercial-stage biopharmaceutical firm valued at approximately $324 million, has resolved ongoing patent litigation with Mylan Pharmaceuticals, Inc., a Viatris Inc. subsidiary.
Under the terms of the agreement, Heron has granted Mylan the right to begin selling generic alternatives to both drugs starting June 1, 2032. This resolution ends two separate legal proceedings filed in the U.S. District Court for the District of Delaware, which were initiated in September 2023 and January 2024 after Mylan sought FDA approval for generics ahead of the drugs’ patent expirations in 2035. As part of the agreement, both companies will ask the court to dismiss the lawsuits.
CINVANTI® and APONVIE® are formulations of the active ingredient aprepitant, used to prevent chemotherapy-induced nausea and vomiting. The deal allows for the possibility of an earlier launch of Mylan’s generics under standard conditions, although the formal market entry date remains set for 2032.
Heron, known for its focus on acute care and oncology-related treatments, continues to show signs of financial health and strategic growth. InvestingPro data shows a solid current ratio of 2.29, indicating strong short-term liquidity. The company has also reported a 13.57% increase in revenue over the last 12 months.
The patent settlement comes on the heels of a strong fourth quarter for Heron. The company reported adjusted earnings of $0.02 per share, outperforming analysts’ expectations of a $0.03 loss. Quarterly revenue reached $40.78 million—above the $37.3 million forecast—and reflected a 19.1% increase year-over-year. A significant contributor was ZYNRELEF, Heron’s pain management therapy, which brought in $8.5 million in Q4, up nearly 49% from the same period last year.
For the full year 2024, Heron posted total revenue of $144.2 million, a 13.6% increase compared to 2023. Looking ahead, the company projects 2025 revenues between $153 million and $163 million, in line with analyst expectations. Additionally, Heron estimates adjusted EBITDA between $0 and $8 million for the year.
In December 2024, the company expanded the label indications for ZYNRELEF and introduced a new vial access needle, further enhancing its product offerings. Heron closed the year with $59.3 million in cash and short-term investments, reinforcing its financial stability as it continues to grow its commercial footprint.