This article first appeared on GuruFocus .
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Total Net Sales:$34.7 million in Q1 2026.
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Acute Care Revenue:$13.6 million, with ZYNRELEF at $10.2 million and APONVIE at $3.4 million.
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Oncology Revenue:$21.1 million, with CINVANTI at $20.5 million and SUSTOL at $0.6 million.
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Revenue Growth:Acute Care portfolio grew 32% year-over-year; ZYNRELEF grew 27%, APONVIE grew over 50%.
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Gross Margin:69%, below the typical low to mid-70s percent range.
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Adjusted EBITDA:Negative $727,000 for the quarter.
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Market Share:CINVANTI maintained a 25% exit market share in the NK1 category.
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Guidance for 2026:Net product sales of $173 million to $183 million and adjusted EBITDA of $10 million to $20 million.
Release Date: May 11, 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 ) reported a strong recovery in March with over $15 million in net sales, indicating resilience and underlying business strength.
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The company achieved a 32% revenue growth in its Acute Care portfolio, with ZYNRELEF growing 27% and APONVIE growing over 50% year-over-year.
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The IGNITE program has been successful, leading to a 111% growth in ZYNRELEF unit volume within targeted accounts, prompting an expansion of the program.
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APONVIE has been included in the fifth consensus guidelines for the management of postoperative nausea and vomiting, providing a clinical endorsement that is expected to drive adoption.
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Heron Therapeutics Inc ( NASDAQ:HRTX ) is expanding its sales force in Q3 2026, which is anticipated to be a significant catalyst for growth across its portfolio.
Negative Points
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The first quarter of 2026 was impacted by severe weather, leading to a decline in elective surgeries and affecting overall performance.
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Gross margin for the quarter was 69%, below the typical low to mid-70s percent range, due to higher costs from a secondary supplier for CINVANTI.
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Adjusted EBITDA was negative $727,000 for the quarter, reflecting the impact of storm-related revenue softness and temporary gross margin pressure.
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The company faces increased competitive pressure in the oncology segment, although CINVANTI maintained a 25% market share.
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There is ongoing friction in the adoption of ZYNRELEF, with challenges in reaching a meaningful number of accounts to drive quarter-over-quarter growth.
Q & A Highlights
Q: Can you discuss the factors influencing ZYNRELEF's market share and the impact of the Baxter settlement on exclusivity? A: Craig Collard, CEO, stated that details of the Baxter settlement cannot be disclosed. Mark Hensley, COO, mentioned that the expansion of the sales force and the IGNITE 2.0 program are expected to drive growth for ZYNRELEF. The focus is on increasing the number of accounts using ZYNRELEF to achieve consistent quarter-over-quarter growth.
Q: How did the winter storms affect surgical volumes, and what is the impact of the NOPAIN Act on commercial coverage for ZYNRELEF? A: Mark Hensley, COO, noted a high single-digit decline in surgical volumes due to the storms, but expects rescheduling of procedures. The NOPAIN Act has improved commercial coverage for ZYNRELEF, with 110 million lives covered, reducing reimbursement friction.
Q: What are the expectations for the CrossLink partnership and the expansion of the IGNITE program? A: Mark Hensley, COO, explained that the CrossLink partnership has expanded the IGNITE program by 38%, aligning Heron and CrossLink efforts in targeted accounts. This alignment is expected to drive success for ZYNRELEF in 2026.
Q: Can you elaborate on the adoption curve for ZYNRELEF and APONVIE, and how you plan to reduce friction in adoption? A: Mark Hensley, COO, emphasized the importance of expanding the sales force to increase market share and reduce friction in adoption. The IGNITE 2.0 program and increased sales force presence are expected to enhance adoption rates.
Q: What are the financial expectations for 2026, considering the temporary factors affecting Q1 results? A: Ira Duarte, CFO, stated that despite Q1 challenges, the company expects to achieve net product sales of $173 million to $183 million and adjusted EBITDA of $10 million to $20 million for 2026, with recovery already underway.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
