This article first appeared on GuruFocus .
Release Date: February 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Heron Therapeutics Inc ( NASDAQ:HRTX ) successfully completed its financing, eliminating a significant overhang and allowing management to focus on commercial execution and growth.
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The company reported strong financial performance with approximately $155 million in total net revenues and an adjusted EBITDA of $14.7 million, exceeding guidance.
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Gross margin improved to approximately 73%, reflecting better cost discipline and product mix.
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The acute care portfolio saw significant growth, with Zenerlef and Apovi delivering 48% and 97% net revenue growth respectively in Q4 2025 compared to Q4 2024.
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Heron Therapeutics Inc ( NASDAQ:HRTX ) plans to expand its commercial team in key markets, leveraging existing success factors to drive further growth and revenue.
Negative Points
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The oncology franchise experienced a 7.8% decline in net revenue compared to 2024, primarily due to the planned wind down of Sustall.
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There is expected price erosion in the CINV franchise, which may offset unit volume growth.
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The company anticipates that increased commercial investments may temporarily moderate EBITDA growth.
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The prefilled syringe presentation for Zenerlef requires 12 months of stability testing, delaying potential approval until mid to late 2027.
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Awareness and adoption of the No Pain Act have been slower than anticipated, requiring additional efforts to educate providers and streamline reimbursement processes.
Q & A Highlights
Q: Can you highlight your expectations for the CINV franchise and the impact of the No Pain Act on Zinrelef? A: Craig Collard, CEO: We expect unit volume growth for the CINV franchise, particularly with the IBM team promoting it. However, there will be some price erosion, so sales should remain relatively flat. Regarding the No Pain Act, Mark Hensley, COO, added that it will continue to be beneficial, especially with the permanent J Code for Zinrelef, which will reduce friction for institutions.
Q: What is the status of the PNT committees for Sinvanti, and how does it affect growth? A: Mark Hensley, COO: Our growth strategy involves deeper penetration into hospitals where we have formulary access. The rollout of the vial access needle has reduced preparation challenges. CrossLink, a larger organization, targets additional accounts beyond our employees. The transition to the vial access needle went smoothly, and we expect a similar approach for the prefilled syringe launch.
Q: Can you provide an update on the Slayback litigation regarding Sinvanti? A: Melissa Garrell, Executive Director of Legal: We are confident in our case presented at trial. We have completed briefing, and it is with Judge Bryson. We expect a decision before the 30-month stay expires.
Q: How is the company addressing awareness of the No Pain Act in light of the opioid crisis? A: Craig Collard, CEO: We underestimated the complexity of coding and awareness, which has been slower than expected. We are expanding our team to handle inquiries and increase awareness. Mark Hensley, COO, added that other large companies are also working to ensure awareness and understanding of reimbursement processes.
Q: What is the expected impact of the fifth consensus guidelines on Apovi's growth trajectory? A: Mark Hensley, COO: The guidelines are a significant educational tool and will likely be referenced by pharmacies for PNT approvals. We expect a significant impact in the latter half of the year, as the typical cycle for PNT approvals is six months. Kevin Warner, SVP of Medical Affairs, added that guidelines bring credibility and will drive long-term adoption.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
