Heron Therapeutics, Inc. (HRTX) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reflects mixed sentiment. While Acute Care products show strong growth and market expansion plans are promising, challenges such as competitive pressures in oncology, temporary gross margin issues, and weather-related disruptions impact overall performance. The Q&A session reveals management's proactive strategies but also highlights uncertainties, particularly regarding the Baxter settlement. The financial guidance indicates potential recovery, but the negative EBITDA and current market conditions suggest a neutral outlook for stock price movement over the next two weeks.
Key Financial Performance
Total Net Sales $34.7 million in Q1 2026, reflecting a decrease due to seasonal headwinds and severe weather early in the quarter. However, March closed strongly with over $15 million in net sales.
Acute Care Portfolio Revenue Growth 32% year-over-year growth, with ZYNRELEF growing 27% and APONVIE growing over 50%. Growth attributed to the success of the IGNITE program and inclusion of APONVIE in the fifth consensus guidelines for postoperative nausea and vomiting.
ZYNRELEF Revenue $10.2 million in Q1 2026, with demand unit growth of 22% year-over-year. Growth supported by the IGNITE program and improved reimbursement environment.
APONVIE Revenue $3.4 million in Q1 2026, with demand units growing 68% year-over-year. Growth driven by inclusion in clinical guidelines, increased ordering accounts, and a permanent product-specific J-code.
Oncology Portfolio Revenue $21.1 million in Q1 2026, with CINVANTI contributing $20.5 million and maintaining a 25% market share in the NK1 category. Stability attributed to customer loyalty and new accounts.
Gross Margin 69% in Q1 2026, below the typical low to mid-70% range due to higher costs from a secondary supplier for CINVANTI. Expected to normalize after two quarters.
Adjusted EBITDA Negative $727,000 for Q1 2026, impacted by storm-related revenue softness and temporary gross margin pressure. Expected to return to positive territory as the year progresses.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
ZYNRELEF: Revenue growth of 27% year-over-year. Demand unit growth of 22% year-over-year. IGNITE program extended and expanded to IGNITE 2.0, covering 3,109 accounts, a 38% increase. Prefilled syringe presentation in late-stage development.
APONVIE: Revenue growth of over 50% year-over-year. Demand units grew 68% year-over-year. Included in the fifth consensus guidelines for postoperative nausea and vomiting management. Permanent product-specific J-code active from April 1, 2026.
CINVANTI: Maintained a 25% market share in the NK1 category. New accounts expected to add $10 million in annualized net revenue. REIGNITE program focused on access to major teaching hospitals.
Sales Force Expansion: Implementation on track for Q3 2026. Recruitment underway to support growth across the portfolio.
Postoperative Nausea and Vomiting (PONV) Market: APONVIE positioned as a standard for PONV prophylaxis in updated guidelines. Addresses medium to high-risk procedures and post-discharge nausea and vomiting.
Gross Margin: Gross margin at 69%, below typical range due to secondary supplier costs for CINVANTI. Expected to normalize to mid-70% range after two quarters.
Adjusted EBITDA: Negative $727,000 for Q1 due to storm-related revenue softness and temporary gross margin pressure. Expected to return to positive territory in 2026.
Pricing Discipline: Maintaining pricing discipline across all products, avoiding volume chasing through price concessions.
IGNITE and REIGNITE Programs: IGNITE 2.0 expanded for ZYNRELEF. REIGNITE program for CINVANTI targeting major teaching hospitals.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Seasonal headwinds and severe weather: The company faced seasonal headwinds due to co-pay resets and insurance adjustments, compounded by two weeks of severe weather early in Q1 2026. This led to a significant decline in elective surgeries, impacting January's performance.
Competitive pressures in oncology: CINVANTI continues to face increased competitive pressure in the NK1 category, which could impact its market share and revenue stability.
Temporary gross margin pressure: Gross margins were impacted by the use of a secondary supplier for CINVANTI, which has higher production costs. This is expected to normalize after two quarters but currently affects profitability.
Supply chain contractual obligations: The company is obligated to produce inventory with a secondary supplier at higher costs, which temporarily affects gross margins.
Economic and operational risks: Storm-related disruptions and the associated revenue softness highlight the vulnerability of operations to external factors beyond the company's control.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Deferred elective procedures: The company expects the remaining deferred elective procedures to be rescheduled throughout the remainder of 2026, creating a meaningful tailwind as the year progresses.
Seasonal performance expectations: Q3 and Q4 are anticipated to represent the highest volume quarters for 2026, consistent with historical patterns.
Acute Care portfolio growth: Revenue growth of 32% year-over-year is expected to continue, driven by the IGNITE program for ZYNRELEF and the inclusion of APONVIE in the fifth consensus guidelines for postoperative nausea and vomiting management.
Sales force expansion: The company plans to expand its sales force in Q3 2026 to support growth across its portfolio, targeting geographies with strong foundational drivers.
Oncology segment growth: New accounts coming on board in Q2 are anticipated to add upwards of $10 million in net revenue on an annualized basis.
ZYNRELEF growth drivers: The IGNITE program has been extended and expanded for 2026, targeting a 38% increase in accounts. A prefilled syringe presentation is in late-stage development, with 12-month stability data expected in Q1 2027.
APONVIE growth drivers: The product's permanent J-code became active in April 2026, and its inclusion in the fifth consensus guidelines is expected to drive adoption. The dedicated sales force for APONVIE will also expand in Q3 2026.
CINVANTI market share stability: The product is expected to maintain its 25% market share in the NK1 category, with the REIGNITE program targeting $10 million in new opportunities.
Gross margin normalization: Gross margins are expected to normalize back to the mid-70% range after fulfilling contractual obligations with a secondary supplier for CINVANTI over the next two quarters.
2026 financial guidance: The company reaffirms its 2026 guidance of net product sales between $173 million and $183 million and adjusted EBITDA of $10 million to $20 million, reflecting continued profitability and commercial expansion.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Can you discuss the factors influencing ZYNRELEF's contribution to the overall company revenue guidance?
A:Management highlighted several factors, including the rescheduling of elective procedures delayed by weather, expansion of the sales force midyear to increase market share, and the success of the IGNITE 2.0 program, which is expected to expand by 38% in 2026. They also noted that market share is growing within targeted accounts.
Q:Can you provide details on the Baxter settlement and its implications for exclusivity?
A:Management stated they are unable to provide details on the Baxter settlement due to restrictions, only confirming that the published dates are accurate.
Q:How do you plan to address the friction in adopting ZYNRELEF and maximize the value of the prefilled syringe?
A:Management acknowledged the challenge of reaching a meaningful number of accounts for consistent growth. They plan to expand the sales team midyear to increase share of voice and continue growing market share within targeted accounts.
Q:Can you quantify the impact of the 1Q winter storm on surgical volumes?
A:Management reported a high single-digit decline in surgical volumes from Q4, attributing it to weather, a record Q4, and some surgical partners pausing in Q1. They expect these surgeries to be rescheduled.
Q:What impact has the NOPAIN initiative had on commercial coverage for ZYNRELEF?
A:Management stated that NOPAIN has reduced friction, particularly on the Medicare and government payer side. They reported 110 million commercial lives covered for ZYNRELEF and noted progress in getting ZYNRELEF reimbursed outside of surgical bundles.
Q:What is the strategy behind the CrossLink partnership and its expansion in 2026?
A:Management explained that CrossLink selects accounts, leading to a 38% expansion in the program. The alignment between Heron and CrossLink is now at 90%, with a focus on accounts with good payer coverage and strong potential for ZYNRELEF success.
Q:Review of Unclear Management Responses
A:Management avoided providing details on the Baxter settlement, citing restrictions on discussing the terms beyond confirming the published dates.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
APONVIE
CINVANTI
IGNITE account
NK
PDNV
ZYNRELEF
antiemetic
bar
care
category
chart slide
complication
consensus guideline
detail presentation
discharge
driver
durability
efficiency
evidence
expansion
guideline nausea
guideline patient
left account
month average
nausea vomiting
prevention PONV
program
prophylaxis
quarter
readmission
recovery
share
surgery
therapy
track
unit left
volume
weather
workflow
HRTX Transcript
Heron Therapeutics, Inc. (HRTX) Q1 2026 Earnings Call Transcript
Unknown5-11
The earnings call reflects mixed sentiment. While Acute Care products show strong growth and market expansion plans are promising, challenges such as competitive pressures in oncology, temporary gross margin issues, and weather-related disruptions impact overall performance. The Q&A session reveals management's proactive strategies but also highlights uncertainties, particularly regarding the Baxter settlement. The financial guidance indicates potential recovery, but the negative EBITDA and current market conditions suggest a neutral outlook for stock price movement over the next two weeks.
Heron Therapeutics, Inc. (HRTX) Q4 2025 Earnings Call Transcript
Positive2-26
The earnings call highlights strong growth in Acute Care products, particularly ZYNRELEF and APONVIE, with optimistic future guidance and strategic initiatives. Despite some competitive and regulatory challenges, the company exceeded its financial guidance, showing resilience. The Q&A session provided additional positive insights, especially regarding the beneficial impact of the NOPAIN Act and new guidelines for APONVIE. However, some uncertainties remain, such as the litigation outcome and the exact impact timelines. Overall, the strong financial performance and growth potential suggest a positive stock price movement.
Heron Therapeutics, Inc. (HRTX) Q3 2025 Earnings Call Transcript
Unknown11-4
The earnings call presents mixed signals: strong revenue growth in key products like ZYNRELEF and APONVIE, but a significant net loss due to debt extinguishment and increased SG&A expenses. The Q&A highlights uncertainties in competitive pressures and future strategies. Positive elements include revised EBITDA guidance and strategic initiatives, but declining margins and unclear management responses temper optimism. With no market cap data, a neutral reaction is expected.
Heron Therapeutics, Inc. (HRTX) Q2 2025 Earnings Call Transcript
Positive8-8
The earnings call indicates strong financial performance with significant year-over-year revenue growth, improved net income, and reduced expenses. Although there are some uncertainties regarding the adoption of ZYNRELEF post-NOPAIN Act, management's strategic refocusing and partnerships seem promising. The positive financial health, coupled with optimistic future guidance, suggests a favorable stock price movement. Despite the lack of immediate impact from the NOPAIN Act, the overall sentiment is positive, driven by strong financial metrics and strategic initiatives.
HRTX Slides
HRTX Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
