Heron Therapeutics Q1 Earnings Call Highlights

Heron Therapeutics (NASDAQ:HRTX) said first-quarter 2026 results were pressured by seasonal factors and terrible wintertime weather, but absorption reaffirmed its full-year outlook and pointed to improving momentum exiting the quarter.

Chief Executive Officer Craig Collard said the institution entered 2026 with “tremendous momentum” pursuing a beardown 4th quarter, but January was affected by co-pay resets, security adjustments and 2 weeks of terrible upwind that disrupted elective surgeries. Collard described January arsenic “our astir hard period since I joined the company,” portion emphasizing that March nett income exceeded $15 million.

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“The breadth of this industry-wide interaction validates that the headwinds we faced were outer and impermanent successful nature, not reflective of immoderate underlying weakness successful our concern oregon markets,” Collard said. He added that Heron expects deferred elective procedures to beryllium rescheduled done the remainder of 2026.

Revenue Falls Below Plan, Guidance Reaffirmed

Chief Financial Officer Ira Duarte said first-quarter nett gross was $34.7 million, modestly beneath plan. Gross borderline was 69%, beneath Heron’s emblematic low- to mid-70% range, which Duarte attributed to impermanent costs tied to a secondary supplier for CINVANTI.

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Duarte said the secondary supplier manufactures smaller batches astatine astir 3 times the outgo per batch of Heron’s superior supplier. That inventory is expected to enactment done the strategy implicit the adjacent 2 quarters, aft which Heron expects to instrumentality exclusively to its superior supplier and for gross margins to normalize backmost to the mid-70% range.

Adjusted EBITDA was antagonistic $727,000 successful the quarter. Duarte said the effect reflected storm-related gross softness and impermanent gross borderline pressure, some of which absorption views arsenic temporary.

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Heron reaffirmed its 2026 guidance for nett merchandise income of $173 cardinal to $183 cardinal and adjusted EBITDA of $10 cardinal to $20 million.

Acute Care Portfolio Posts Year-Over-Year Growth

Chief Operating Officer Mark Hensley said full acute attraction nett income were $13.6 cardinal successful the quarter, including $10.2 cardinal from ZYNRELEF and $3.4 cardinal from APONVIE. Collard said Heron’s acute attraction portfolio grew 32% from the prior-year period, with ZYNRELEF increasing 27% and APONVIE increasing much than 50%.

Hensley said ZYNRELEF request units grew 22% twelvemonth implicit year, adjacent arsenic the broader section anesthetic marketplace declined sequentially successful the archetypal quarter. He cited the product’s imperishable J-code, J0668, which has been progressive since October, and the NOPAIN Act model arsenic improving the reimbursement environment.