Heron Therapeutics, Inc. · NASDAQ:HRTX

Heron Therapeutics — Investor Presentation (February 2016)

46 slides from Heron Therapeutics's investor presentation, Feb 8, 2016

  1. Slide 1: Company Update

    Company Update February 8, 2016

  2. Slide 2: Legal Disclaimer

    Legal Disclaimer This presentation contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including uncertainties associated with the development, regulatory approval, manufacture, la

  3. Slide 3: Status of Product Portfolio

    Status of Product Portfolio Preclinical Phase 1 Phase 2 Phase 3 NDA Approved SUSTOL® Acute and Delayed Nausea and Vomiting Associated HEC and MEC BE Study completed – Developing with 505(b)(2) Pathway – Phase 2 HTX-019 IV NK1 for CINV Prevention & 3 should not be required; NDA Submission Expected 2H

  4. Slide 4: CINV Franchise

    CINV FRANCHISE THERAPEUTICS

  5. Slide 5: SUSTOL

    SUSTOL® • SUSTOL® (granisetron) Injection, extended release, is a long-acting, injectable product for the prevention of chemotherapy-induced nausea and vomiting (CINV) – 1,341-patient, randomized, controlled, Phase 3 study demonstrated activity in acute and delayed CINV after moderately emetogenic c

  6. Slide 6: SUSTOL Has the Potential to be the Next Generation 5-HT3 Receptor Antagonist

    SUSTOL Has the Potential to be the Next Generation 5-HT3 Receptor Antagonist 5-HT3 1st generation 2nd generation 3rd generation RAs ondansetron Products palonosetron SUSTOL granisetron Duration of Short acting Longer acting Long acting action ~ 8 hr half-life ~40 hr half-life PK profile 5-7 days Pre

  7. Slide 7: HTX-019 Potential Tolerability Benefit

    HTX-019 Potential Tolerability Benefit • Fosaprepitant is currently the only injectable NK1 RA approved in the U.S. • Fosaprepitant contains polysorbate 80, which may cause: – Hypersensitivity reactions, including flushing, itching or shortness of breath, and has the potential to cause severe anaphy

  8. Slide 8: HTX-019 is Bioequivalent to EMEND IV for Both Aprepitant and Total Aprepitant Equivalents

    HTX-019 is Bioequivalent to EMEND IV® for Both Aprepitant and Total Aprepitant Equivalents 8

  9. Slide 9: HTX-019 vs EMEND IV Human BE Study: Clear Safety Advantage

    HTX-019 vs EMEND IV Human BE Study: HTX-019 Shows Clear Safety Advantage • 100 subjects received HTX-019 and EMEND IV in standard cross-over design SAFETY HTX-019 EMEND IV All AEs 28% 56% AEs considered at least possibly 20% 52% related Moderate AEs 0 6% Hypersensitivity Reactions 0 3% Premature Dis

  10. Slide 10: CINV Franchise Commercial Opportunity

    CINV FRANCHISE COMMERCIAL OPPORTUNITY 10

  11. Slide 11: The Management of CINV Remains a Significant Clinical Challenge

    The Management of CINV Remains a Significant Clinical Challenge > In the U.S., over 1 million people receive CINV therapy each year > On average, they each receive 5-6 cycles of CINV therapy Unmet Need 2.4  Despite treatment with existing therapies, many Million patients experience breakthrough CIN

  12. Slide 12: Despite Available Therapies, a Large Percentage of Patients Experience Breakthrough CINV

    Despite Available Therapies, a Large Percentage of Patients Experience Breakthrough CINV % of MEC/HEC patients with breakthrough % of MEC/HEC patients with breakthrough CINV despite prophylaxis CINV despite prophylaxis Community practice observational study Physician perception 70% Percent of patien

  13. Slide 13: CINV Has a High Clinical Burden

    CINV Has a High Clinical Burden – Impacting Patients’ QOL and Cancer Treatment Patients identified CINV as the side effect of CINV commonly disrupts patients’ chemotherapy they most wanted to avoid cancer treatment More acceptable Worst 1.00 Constipation Median visual analog scale (VAS) score CINV F

  14. Slide 14: 87% of Oncologists Believe New Agents are Needed to Address Unmet Needs in CINV

    87% of Oncologists Believe New Agents are Needed to Address Unmet Needs in CINV Prevention Unmet Needs In Prevention of CINV CINV agent that effectively prevents both acute and delayed CINV 55% CINV agent that effectively prevents delayed CINV in patients receiving HEC 45% CINV agent with a long-act

  15. Slide 15: Across Phase 3 Studies, SUSTOL Effective in Preventing Acute and Delayed CINV

    Across 2 Phase 3 Studies, SUSTOL Was Effective in Preventing Acute and Delayed CINV in MEC and HEC STUDY C2006 MAGIC STUDY SUSTOL was non-inferior to IV palonosetron in preventing SUSTOL is the first and only acute and delayed CINV in MEC and acute CINV in HEC 5-HT3 to demonstrate superiority vs. an

  16. Slide 16: MAGIC is the First Pivotal HEC Trial to Incorporate a 3-Drug Regimen in Both Arms

    MAGIC is the First Pivotal HEC Trial to Incorporate a Guideline-Recommended 3-Drug Regimen in Both Arms • In MAGIC, the efficacy advantage of SUSTOL vs. the standard-of-care 5-HT3 was similar to the benefit shown in recent trials of adding an NK-1 • SUSTOL is the first 5-HT3 to demonstrate superiori

  17. Slide 17: More Than 80% of Oncologists Found the MAGIC Trial Clinically Meaningful

    More Than 80% of Oncologists Found the MAGIC Trial Design and Results to be Clinically Meaningful Clinically relevant design: The Mean score trial’s 3-drug vs. 3-drug design is 81% more clinically relevant than those 4.0 with a 3-drug vs. 2-drug design 1 = Strongly disagree 0% 20% 40% 60% 80% 100% 2

  18. Slide 18: SUSTOL was Rated Higher than Aloxi on Most Clinical Attributes

    SUSTOL was Rated Higher than Aloxi® on Most Clinical Attributes Including Those That Influence Product Choice the Most SUSTOL vs. Aloxi Product Attribute Ratings Attribute influence on SUSTOL Aloxi product choice Higher 4.4 Ability to prevent delayed CINV 4.4 Ability to prevent CINV in HEC 4.3 Safet

  19. Slide 19: The Branded 5-HT3 Market (Aloxi) Consists of 2.6 Million Units

    The Branded 5-HT3 Market (Aloxi) Consists of 2.6 Million Units Injectable Drugs for the Prevention of CINV Number of Package Units Sold by Quarter 800,000 700,000 Aloxi 600,000 500,000 400,000 300,000 EMEND 200,000 100,000 0 Q2'06 Q4'06 Q2'07 Q4'07 Q2'08 Q4'08 Q2'09 Q4'09 Q2'10 Q4'10 Q2'11 Q4'11 Q2'

  20. Slide 20: Significant Awareness of SUSTOL Exists Among Oncologists Surveyed

    Despite No Promotion to Date, Significant Awareness of SUSTOL Exists Among Oncologists Surveyed Awareness of CINV products (4) Very familiar with product (3) Know some basic product information (2) Know little more than the product name (1) I am not aware of this product Mean Score (1-4) EMEND (apre

  21. Slide 21: Heron's Commercial Plans will Address Traditional Launch Barriers

    Heron’s Commercial Plans will Address Traditional Launch Barriers for Providers, Patients, and Payers Objectives The Heron Approach • Differentiated ER technology and broadest clinical data set Establish SUSTOL • Robust in-office and peer-to-peer education via multiple channels as preferred agent •

  22. Slide 22: U.S. Commercial Organization Has Been Built and is Poised for Launch

    U.S. Commercial Organization Has Been Built and is Poised for Launch Commercial leadership in place Sales and nurse Field leadership educator teams established established MSL team established Payer account team established Ongoing interactions with key oncology practices, GPOs, distributors and pay

  23. Slide 23: SUSTOL Pricing Strategy Will Consider CINV Product Benchmarks

    SUSTOL Pricing Strategy Will Consider CINV Product Benchmarks Product WAC AKZYNEO (NEPA) $499.80 (300-0.5mg capsule) ORAL EMEND (aprepitant) $539.60 (TriPack – 1x 120mg and 2x 80mg) VARUBI (rolapitant) $533.00 (2x 90mg tablet) ALOXI (palonosetron) $434.00 IV (0.25mg/5mL vial) EMEND IV (fosaprepitant

  24. Slide 24: Post-Operative Pain Program

    POST-OPERATIVE PAIN PROGRAM 24

  25. Slide 25: Biochronomer Bupivacaine Superior to EXPAREL at 24-72 Hours

    Biochronomer® Bupivacaine Superior to EXPAREL® at 24-72 Hours Pig Post-Operative Pain Model Saline Control (1) Biochronomer Bupivacaine (1) Exparel (2) 100.0 Percentage of Maximal Force (60 gm) Tolerated by 90.0 80.0 70.0 60.0 Animal 50.0 40.0 30.0 20.0 10.0 0.0 0 1 3 5 24 48 72 96 120 HOURS 1. Stud

  26. Slide 26: Local Anesthetics Exist in a Balance Between Water-Soluble and Lipid-Soluble Forms

    Local Anesthetics Exist in a Balance Between Water-Soluble and Lipid-Soluble Forms Acidic Environment Shifts the Balance to Ionized Form Unable to Penetrate Nerve Cell Membrane BUPH+ BUPN + H+ Nerve Cell Membrane BUPH+ BUPN + H+ • The acidic environment associated with inflammation shifts the balanc

  27. Slide 27: HTX-011 Significantly Superior to EXPAREL at 24-72 Hours

    HTX-011 Significantly Superior to EXPAREL at 24-72 Hours Pig Post-Operative Pain Model Saline Control (1) Biochronomer Bupivacaine (1) HTX-011 (2) Exparel (2) 100.0 Percentage of Maximal Force (60 gm) Tolerated by 90.0 80.0 70.0 60.0 Animal 50.0 40.0 30.0 20.0 10.0 0.0 0 1 3 5 24 48 72 96 120 HOURS

  28. Slide 28: Phase 2 Study of HTX-011 in 64 Patients Undergoing Bunionectomy

    A Randomized, Placebo- Controlled, Double-Blind, Phase 2 Study of HTX-011 in the Management of Post-Operative Pain in 64 Patients Undergoing Bunionectomy 28

  29. Slide 29: Phase 2a Bunionectomy Study Design

    Phase 2a Bunionectomy Study Design Screening Treatment (96-hour evaluation) Primary Endpoint Part A - HTX-011 • SPI 0-24 hrs 200 mg bupivacaine (n=20) Secondary Endpoints • SPI 0-48 & 24-48 hrs Placebo - All subjects pooled • SPI 0-72 & 48-72 hrs Subjects for endpoint analysis • SPI 0-96 & 72-96 hrs

  30. Slide 30: Historical Context: Exparel Pivotal Bunionectomy Study

    Historical Context: Exparel Pivotal Bunionectomy Study Source: FDA Clinical Review of NDA 022-496, page 48 30

  31. Slide 31: Pain Intensity Difference

    Pain Intensity Difference at 200 mg 7.00 HTX-011 200 mg 6.00 Placebo Mean Pain Intensity Score* 5.00 4.00 3.00 2.00 SPID0-24 -25%, p=0.022 1.00 0.00 0 10 20 30 40 50 60 70 Hours *Standard LOCF method used to account for use of rescue medications from Golf et al, Adv 31 Ther, 28(9):776-788, 2011

  32. Slide 32: Pain Intensity Difference

    Pain Intensity Difference at 400 mg 7.00 SPID24-48 HTX-011 400 mg 6.00 -38%, p=0.0176 Placebo Mean Pain Intensity Score* 5.00 4.00 3.00 2.00 1.00 SPID0-24 SPID0-48 SPID0-72 -69%, p<0.0001 -52%, p<0.0001 -40%, p=0.0064 0.00 0 10 20 30 Hours 40 50 60 70 *Standard LOCF method used to account for use of

  33. Slide 33: Historical Context: Percent of Patients Pain Free, Cross-Study Comparison to Exparel

    Historical Context: Percent of Patients Pain Free, Cross-Study Comparison to Exparel 100 Percent of Patients Pain Free (PI ≤ 1) 90 HTX-011 400 mg 80 Placebo 70 60 50 40 30 20 10 0 0 12 24 36 48 60 72 Hours Source: Golf et al, Adv Ther, 28(9):776-788, 2011 33

  34. Slide 34: Mean Time to First Use of Opiate Rescue Medication

    Mean Time to First Use of Opiate Rescue Medication • 488% longer time to first use of rescue medications with 400 mg dose compared to placebo HTX-011 HTX-011 Placebo 200 mg 400 mg 20.8 hours 48.2 hours 8.2 hours p=0.15 p<0.0001 Cross-study comparison: Mean time with Exparel was 7.2 hours versus 4.3

  35. Slide 35: Percent of Patients Who Received No Opiate Rescue Medication

    Historical Context: Percent of Patients Who Received No Opiate Rescue Medication, Cross-Study Comparison to Exparel 100 HTX-011 400 mg Percent of Patients Who Received No 90 80 Placebo Opiate Rescue Medication 70 60 50 40 30 20 10 0 0 12 24 36 48 60 72 Hours Source: Golf et al, Adv Ther, 28(9):776-7

  36. Slide 36: Pain Intensity NOT Adjusted for Opiate Use

    Pain Intensity NOT Adjusted for Opiate Use: HTX-011 Significantly Better Than Unlimited Opiates* 7 HTX-011 400 mg 6 Placebo Mean Pain Intensity Scores 5 4 3 2 1 SPID0-24 SPID0-48 SPID0-72 0 p<0.0001 p=0.0001 p=0.0051 0 10 20 30 Hours 40 50 60 70 *Patients were permitted to take 5 mg oxycodone every

  37. Slide 37: Preliminary Safety

    Preliminary Safety • HTX-011 was generally well tolerated • The most common adverse events were: headache, nausea, vomiting, constipation, erythema, cellulitis, dizziness, and hypoxia, none of which were considered drug-related 37

  38. Slide 38: HTX-011b: Second Formulation with Distinct Properties

    HTX-011b: Second Formulation with Distinct Properties • HTX-011b is our second formulation with greater volume (potentially up to 20 ml) • Phase 1 study in healthy volunteers showed: – Therapeutic drug levels achieved faster – Higher drug levels achieved • First cohort of Phase 2 study in 5 patients

  39. Slide 39: HTX-011b is a Higher Volume Formulation

    HTX-011b is a Higher Volume Formulation (Potentially up to 20 ml) 600 Mean Bupivacaine Plasma Concentrations* HTX-011 200 mg 500 HTX-011 400 mg HTX-011b 200 mg 400 (ng/mL) 300 200 100 0 0 20 40 60 80 100 120 140 160 Hours *From Phase 1 Study in healthy volunteers 39

  40. Slide 40: Pain Intensity: HTX-011b vs. HTX-011

    Pain Intensity: HTX-011b 200 mg vs. HTX-011 400 mg 7 HTX-011b 200 mg (n=5) 6 Mean Pain Intensity Scores* HTX-011 400 mg (n=22) 5 4 3 2 1 0 0 12 24 36 48 60 72 Hours *Not adjusted for use of rescue medications 40

  41. Slide 41: Phase 2 Abdominoplasty Study Design

    Phase 2 Abdominoplasty Study Design Screening Treatment (96 hour evaluation) Primary Endpoint  SPI 0-24 hrs Part A (n=45) 1) 200 mg of HTX-011 (n=10 subjects) Secondary Endpoints  SPI 0-48 & 24-48 hrs 2) 400 mg of HTX-011 (n=10 subjects)  SPI 0-72 & 48-72 hrs Subjects 3) 600 mg of HTX-011 (n=10 s

  42. Slide 42: HTX-011 Clinical Development Program

    HTX-011 Clinical Development Program 2H15 1H16 2H16 Study 202 – Hernia Repair After initial study, add HTX-011b and HTX-002* Study 203 – Abdominoplasty with HTX-011b Study 207 – Pilot bunion with HTX- 011b, HTX-002*, bupivacaine solution Pilot studies are designed to confirm our sample size projecti

  43. Slide 43: Long-Acting Injectable Products Contain Many Times the Single Dose

    Long-Acting Injectable Products Contain Many Times the Single Dose: HTX-011 is at the Low End of the Range Maximum Maximum Maximum LAI Dose vs. Short-Acting Approved Long-Acting Injectable Approved LAI Maximum Short-Acting Injectable Drug Indication Daily Dose (LAI) Drug Dose Daily Dose Ratio Sandos

  44. Slide 44: Greater Than 72 Hour Duration of Action Seen as Ideal by Physicians

    > 72 hour Duration of Action Seen as “Ideal” by Physicians, With 48 hours Minimally Acceptable Ideal Duration of Efficacy for Long- Minimally Acceptable Duration of Acting Local Anesthetic Efficacy for Long-Acting Local Anesthetic >5 days 2% 5 days 4% ≤ 24 hours 72 hours 4 days 11% 12% 9% ≤ 24 48 ho

  45. Slide 45: Many MDs Expect the Use of Long-Acting Local Anesthetics to Increase

    Across Procedures, Many MDs Expect the Use of Long-Acting Local Anesthetics to Increase Use of Long-Acting Local Anesthetics in the Future, by Procedure Arthroplasty knee (inpatient) 3% 49% 48% Hernia (inpatient) 7% 47% 46% Hip replacement, total and partial 3% 49% 48% Hernia (outpatient) 5% 41% 54%

  46. Slide 46: Condensed Balance Sheet Data – December 31, 2015

    Condensed Balance Sheet Data – December 31, 2015 Condensed Balance Sheet Data As of December 31, (In thousands, Unaudited) 2015 Cash and cash equivalents $ 131,000 Current cash resources expected to fund operations through 2016, including potential SUSTOL commercial launch 46

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