Heron Therapeutics, Inc. Q4 2025 Earnings Call Summary Moby Intelligence Fri, February 27, 2026 at 5:33 AM GMT+8 3 min read In this article: - HRTX -0.83%
Heron Therapeutics, Inc. Q4 2025 Earnings Call Summary - Moby Strategic Execution and Performance Drivers
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The company successfully completed a financing round that eliminated a long-standing capital structure overhang, allowing management to focus entirely on commercial execution.
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Acute Care performance reached a strategic inflection point in Q4 2025, with ZYNRELEF and APONVIE delivering 48% and 97% year-over-year revenue growth, respectively.
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Operational improvements such as the CrossLink IGNITE distributor incentive program and the introduction of the vial access needle (VAN) significantly reduced hospital workflow friction.
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The implementation of permanent J-Codes for ZYNRELEF and APONVIE has improved reimbursement clarity, facilitating broader adoption across hospitals and ambulatory surgery centers.
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Oncology performance remained a stable revenue base, with CINVANTI showing resilience against competitive pressures while the company continues the planned wind-down of SUSTOL.
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Management is pivoting to a high-growth strategy by expanding sales capacity in priority geographies that exhibit favorable market access and established distributor relationships.
2026 Outlook and Strategic Initiatives
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Full year 2026 guidance projects net product sales between $173 million and $183 million, with adjusted EBITDA expected to remain positive between $10 million and $20 million.
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The company plans to increase commercial investments starting mid-2026, which may temporarily moderate EBITDA growth to prioritize long-term revenue acceleration and free cash flow in 2027.
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ZYNRELEF's prefilled syringe (PFS) presentation is undergoing 12 months of stability testing, with a targeted FDA approval and launch window in mid- to late 2027.
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APONVIE adoption is expected to accelerate in the second half of 2026 as its inclusion in the Fifth Consensus Guidelines for PONV management begins to influence hospital P&T committee cycles.
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The NOPAIN Act is anticipated to serve as a significant tailwind as provider awareness of separate reimbursement for non-opioid treatments increases throughout 2026.
Risk Factors and Structural Changes
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The Oncology franchise is undergoing a structural shift as SUSTOL is phased out through 2026, leading to a projected modest decline in total oncology revenue.
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CINVANTI faces ongoing competitive pricing dynamics in the clinic setting, though management expects to offset this through volume growth in the hospital segment.
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The transition to the prefilled syringe (PFS) will require careful inventory management of existing vial presentations to ensure a seamless market switch in 2027.
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Ongoing patent litigation regarding CINVANTI remains a factor, though management expressed confidence following the conclusion of trial briefing.
Q&A Session Summary
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Impact of NOPAIN Act on ZYNRELEF growth trajectory-
Management noted that 2025 was primarily an education year for providers regarding the NOPAIN Act, and they expect it to be a strong tailwind moving forward.
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The act helps remove financial friction by allowing institutions to receive separate reimbursement rather than absorbing costs within a surgical bundle.
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Inclusion in the Fifth Consensus Guidelines provides clinical validity that is essential for Pharmacy and Therapeutics (P&T) committee approvals.
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Management expects a 6-to-9-month lag before guideline inclusion fully translates into updated hospital order sets and sustained long-term adoption.
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The company has finished briefing in the Slayback litigation and expects a decision from the U.S. District Court of Delaware before the 30-month stay expires.
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Management remains confident in the case presented at trial regarding their formulation and Orange Book patents.
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