Core Viewpoint - Heron Therapeutics (HRTX) has experienced a decline of over 10% year-to-date, despite an initial rally triggered by preliminary Q4'25 numbers earlier in January [1] Group 1: Company Performance - The company was previously rated a hold, with the analyst noting that HRTX had performed well in its operations [1] Group 2: Market Context - The focus of the analysis includes trading around significant events such as trial results and NDA/BLA approvals, indicating a strategic approach to biotech stock trading [1]

CARY, N.C., Feb. 17, 2026 (GLOBE NEWSWIRE) -- Heron Therapeutics, Inc. (Nasdaq: HRTX) (“Heron” or the “Company”), a commercial-stage biotechnology company, today announced that the Company will host a conference call and live webcast on Thursday, February 26, 2026, at 8:30 a.m. ET to report fourth quarter and full year 2025 financial results and discuss recent business highlights. The conference call can be accessed by phone by utilizing the following registration link which will provide participants with d ...

Core Insights - The company reported strong growth in Q4 2025, particularly in its Acute Care franchise, with notable contributions from ZYNRELEF and APONVIE [1] - Overall revenue for Q4 was approximately $40.5 million, with a total net revenue of about $154.9 million for FY25 [1] Financial Performance - Q4 net revenue: approximately $40.5 million for the three months ended December 31 [1] - ZYNRELEF net revenue: approximately $12.5 million for Q4 [1] - APONVIE net revenue: approximately $3.8 million for Q4 [1] - CINVANTI net revenue: approximately $22.9 million for Q4 [1] - SUSTOL net revenue: approximately $1.3 million for Q4 [1] - FY25 total net revenue: approximately $154.9 million [1] - ZYNRELEF experienced the largest quarter-over-quarter revenue increase within the portfolio in Q4 [1]

Core Insights - Heron Therapeutics, Inc. reported preliminary, unaudited net revenue for Q4 and full-year 2025, indicating growth driven by its Acute Care franchise products, ZYNRELEF and APONVIE [1][2] Financial Performance - The company achieved net revenue of approximately $40.5 million for Q4 2025, with ZYNRELEF contributing approximately $12.5 million, APONVIE approximately $3.8 million, CINVANTI approximately $22.9 million, and SUSTOL approximately $1.3 million [7] - For the full year 2025, net revenue reached approximately $154.9 million, with ZYNRELEF showing a quarter-over-quarter revenue increase of about 35% compared to Q3 2025 [7] Product Information - ZYNRELEF is the first extended-release dual-acting local anesthetic approved for postoperative pain management, demonstrating significant efficacy in reducing pain and opioid use post-surgery [3] - APONVIE is a neurokinin 1 receptor antagonist for the prevention of postoperative nausea and vomiting, approved by the FDA in September 2022 and commercially available since March 2023 [5] - CINVANTI is indicated for the prevention of chemotherapy-induced nausea and vomiting, utilizing an IV formulation of aprepitant [8] Company Overview - Heron Therapeutics focuses on developing and commercializing therapeutic innovations aimed at improving patient care, leveraging advanced science and patented technologies [11]

Core Viewpoint - Heron Therapeutics' APONVIE® has been included in the Fifth Consensus Guidelines for the Management of Postoperative Nausea and Vomiting (PONV), highlighting its significance in preventing PONV in surgical patients [1][2][3]. Group 1: PONV Guidelines and APONVIE - PONV affects approximately 30% of general surgical patients and up to 80% of high-risk patients, making it a major cause of dissatisfaction post-surgery [2]. - APONVIE is recognized as an NK-1 receptor antagonist for PONV prevention, noted for its long half-life and rapid 30-second IV administration, which allows for quicker onset compared to oral formulations [2][6]. - The guidelines indicate that aprepitant, either alone or in combination therapies, significantly reduces the risk of PONV and is comparable or superior to ondansetron for prophylaxis [2][6]. Group 2: Importance of PONV Management - The release of the PONV Guidelines is timely as more surgeries are performed in outpatient settings, emphasizing the need for effective PONV management to ensure safe recoveries [3]. - The guidelines recommend a multimodal approach for high-risk patients, suggesting the use of three or more agents for prophylaxis [3][4]. - There is a focus on the importance of long-acting antiemetics to extend protection against nausea and vomiting beyond the hospital setting, addressing the risks of post-discharge nausea and vomiting (PDNV) [4][6]. Group 3: Company Overview - Heron Therapeutics is a commercial-stage biotechnology company dedicated to improving patient care through innovative therapeutic solutions [8]. - APONVIE, approved by the FDA in September 2022 and commercially available since March 2023, is positioned as a key product in the company's portfolio aimed at enhancing postoperative recovery experiences [7][8].

Core Insights - Heron Therapeutics is a biotechnology company focused on pain management and cancer treatments, with key products ZYNRELEF and APONVIE showing significant revenue growth due to strategic initiatives [1] Financial Performance - On November 4, 2025, Heron Therapeutics reported an EPS of -$0.10, missing the estimated EPS of -$0.01, marking a decline from the previous year's loss of $0.03 per share, resulting in a negative surprise of 150% [2] - The company's revenue for the quarter was $38.21 million, below the estimated $39.03 million, but represents a 16.5% increase compared to the same period last year; however, it fell short of the Zacks Consensus Estimate of $38.57 million, resulting in a revenue surprise of -0.91% [3] Valuation Metrics - The company has a P/E ratio of approximately -182.81 and a price-to-sales ratio of about 1.13, indicating negative earnings and that investors are paying $1.13 for every dollar of sales; the enterprise value to sales ratio is approximately 2.20 [4] - The debt-to-equity ratio is about -6.48, indicating a significant level of debt relative to equity [4] Future Outlook - Heron Therapeutics remains optimistic about its future, reaffirming its 2025 net revenue guidance of $153 million to $163 million, with an adjusted EBITDA projected between $9 million and $13 million, focusing on new initiatives launched in the third quarter that are positively impacting commercial performance [5]

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Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 were $38.2 million, with year-to-date revenues of $114.3 million, resulting in adjusted EBITDA of $1.5 million for the quarter and $9.5 million year to date [5][21] - Gross margin was 68.8%, down from 71.2% in Q3 2024, primarily due to a one-time write-off of Sustol polymer inventory [6][18] - Net loss for Q3 2025 was $17.5 million, compared to a net loss of $4.8 million in Q3 2024, largely due to an $11.3 million loss on debt extinguishment [20] Business Line Data and Key Metrics Changes - Acute care portfolio net sales were $12.3 million in Q3 2025, up from $10.7 million in Q2 2025, with ZYNRELEF net sales growing 49% year-over-year to $9.3 million [12][16] - APONVIE net sales increased 173% year-over-year to $3 million, reflecting strong growth before the dedicated sales team was fully active [12][14] - Oncology franchise net sales were $25.9 million in Q3 2025, with CINVANTI net sales approximately $24 million, up about 6% year-over-year [15][16] Market Data and Key Metrics Changes - ZYNRELEF's average daily units increased from 882 in Q3 2024 to 1,127 in Q3 2025, with ordering accounts rising from 705 to 833 [13] - APONVIE's average daily units grew from 418 to 998, with ordering accounts increasing from 299 to 405 [14] Company Strategy and Development Direction - The company has implemented initiatives such as the CrossLink Ignite program and the launch of the 200 mg Vial Access Needle to enhance distributor engagement and product adoption [7][10] - The introduction of a permanent product-specific J-code for ZYNRELEF is expected to streamline reimbursement and improve access [9][11] - The company plans to wind down the commercialization of Sustol over the next 12 months while evaluating potential product updates for a possible reintroduction in late 2027 [16][49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for ZYNRELEF and APONVIE, indicating a positive trajectory for the business moving forward [10][16] - The company reaffirmed its guidance for net revenue of $153 million to $163 million and adjusted EBITDA of $9 million to $30 million for the year [21] Other Important Information - Cash and short-term investments as of September 30, 2025, were $55.5 million, bolstered by $13.1 million from recent debt and equity transactions [21] - The company is seeing momentum from the No Pain Act, with approximately 75% of ZYNRELEF indicated procedures having some form of coverage [47] Q&A Session Summary Question: October sales increase for ZYNRELEF - Management confirmed an approximate 17-18% month-over-month increase in early October sales for ZYNRELEF [24] Question: Adjusted gross profit margin - Management confirmed that the adjusted gross profit margin, excluding a one-time stocking charge, would be around 74.5% [25][26] Question: Future sales team expansion - Management indicated that they are pleased with the structural changes made and are considering adding to the sales teams based on success in specific regions [35][38] Question: Inventory stocking benefit for ZYNRELEF - Management stated that there was minimal inventory stocking benefit from the launch of the 200 mg Vial Access Needle [39] Question: Long-term outlook for Sustol and Synvonti - Management acknowledged competitive pressures on Sustol and indicated plans to wind down its commercialization while exploring potential updates for a future reintroduction [49] Question: Impact of the No Pain Act - Management noted that momentum is building for the No Pain Act, with commercial payers beginning to provide separate reimbursement [46][47]

Financial Performance - Q3 2025 net revenue reached $38.2 million, and year-to-date revenue totaled $114.3 million[9] - Gross profit for Q3 2025 was $26.299 million, with a year-to-date gross profit of $84.088 million[34] - The company reported a loss from operations of $4.093 million for Q3 2025 and $2.576 million year-to-date[34] - Adjusted EBITDA for Q3 2025 was $1.542 million, and year-to-date adjusted EBITDA was $9.530 million[36] Product Performance - ZYNRELEF net sales in Q3 2025 were $9.3 million, a 49% increase year-over-year[9, 30] - APONVIE net sales in Q3 2025 were $3 million, a 173% increase year-over-year[9, 29] - Oncology Care Franchise net sales for the three months ended September 30, 2025, were $25.9 million[24] - Demand units for ZYNRELEF grew 30% between Q3 2024 and Q3 2025[19] - Demand units for APONVIE grew 142% between Q3 2024 and Q3 2025[23] Key Developments - ZYNRELEF average daily units increased 28% year-over-year, reaching 1,127 in Q3 2025 compared to 882 in Q3 2024[19] - APONVIE average daily units increased 139% year-over-year, reaching 998 in Q3 2025 compared to 418 in Q3 2024[23]