Heron's Acute Care Surge Signals Profitability on the Horizon

CARY, NC – February 26, 2026 – Heron Therapeutics (Nasdaq: HRTX) delivered a powerful message to investors today, reporting record-setting growth in its Acute Care franchise and issuing an optimistic financial outlook for 2026 that suggests a clear path to sustained profitability. The company's full-year 2025 financial results, highlighted by a 65% revenue surge for its postoperative care products, sent shares climbing in pre-market trading as the market responded to the successful execution of its commercial strategy.

Heron announced total net revenue of $154.9 million for 2025. While this represents a modest 7.4% increase over 2024, the underlying story is one of a strategic pivot gaining significant traction. The company's Acute Care division, featuring the non-opioid pain treatment ZYNRELEF® and the anti-nausea medication APONVIE®, is rapidly becoming the company's primary growth engine, overshadowing challenges in its legacy oncology business.

“As demonstrated in today’s release, we are entering 2026 with exceptional momentum,” said Craig Collard, Chief Executive Officer of Heron. “The fourth quarter delivered the strongest results in the history of Heron’s Acute Care franchise, underscoring the success of the strategic decisions we implemented to unlock the full potential of these assets.”

Acute Care Franchise Fuels Record Growth

The standout performance came from the Acute Care franchise, which saw its full-year revenue jump by 65.1% to $49.6 million in 2025. The momentum accelerated throughout the year, with fourth-quarter revenue for the franchise growing 57.3% year-over-year to $16.3 million.

This growth is driven by two key products aimed at improving the patient experience after surgery:

• ZYNRELEF®, a non-opioid, extended-release local anesthetic for postoperative pain management, saw its 2025 revenue climb 49% to $38.1 million. The drug offers a critical alternative to opioids, providing pain relief for up to 72 hours after surgery.

• APONVIE®, an injectable emulsion for preventing postoperative nausea and vomiting (PONV), experienced a staggering 156.1% revenue increase, reaching $11.6 million for the year. Its rapid, 30-second IV push administration makes it a convenient option for a common and distressing side effect of surgery.

The robust uptake of these products reflects a broader shift in healthcare towards reducing opioid reliance and enhancing patient recovery protocols. Heron appears to be capitalizing on this trend effectively.

Strategic Wins Pave the Way for Market Dominance

The impressive revenue figures are not a matter of chance; they are the result of several key strategic, regulatory, and clinical milestones achieved in 2025 that have removed significant barriers to adoption.

Crucially, both ZYNRELEF (J0668) and APONVIE (J8502) were granted permanent, product-specific J-Codes by the Centers for Medicare and Medicaid Services (CMS). These codes are vital for simplifying the billing and reimbursement process for hospitals and ambulatory surgical centers. By creating a clear and predictable payment pathway, the J-Codes encourage broader formulary acceptance and physician use, as they reduce the financial uncertainty and administrative burden for healthcare providers.

Further bolstering its market position, APONVIE was recently included in the prestigious Fifth Consensus Guidelines for the Management of Postoperative Nausea and Vomiting. This clinical endorsement serves as a powerful recommendation for healthcare systems, highlighting the drug's efficacy and role in multimodal PONV prevention. While the full impact of this inclusion will materialize over time—as hospitals typically take six to nine months to update their internal protocols and order sets—it provides a significant long-term tailwind for adoption.

Operationally, the company also completed the transition to a Vial Access Needle for ZYNRELEF, a move designed to optimize product preparation and handling, making it easier and safer to use in sterile operating room environments.

A Tale of Two Portfolios: Oncology Headwinds Persist

While the acute care story is one of rapid ascent, Heron's financial report also reveals the complexities of managing a diverse product portfolio. The company's Oncology franchise, which includes CINVANTI® and SUSTOL® for preventing chemotherapy-induced nausea and vomiting (CINV), faced notable headwinds.

This segment, while still generating a substantial $105.3 million in 2025 revenue, saw its sales decline by 7.8% compared to the previous year. The drop was most pronounced for SUSTOL, which experienced a 39.9% revenue decrease for the full year. This decline is largely attributed to what the company calls 'complex market dynamics,' which research indicates is a planned wind-down of the product in the face of increasing competition from generic alternatives.

Despite the pressure, CINVANTI has remained a resilient revenue contributor, generating $96.8 million in 2025. Its performance underscores a loyal customer base, though it still saw a slight 3.3% decline for the year. This dual narrative highlights a company in transition, successfully shifting its commercial focus and resources toward its highest-growth assets while managing the lifecycle of its established products.

Financial Health and Future Horizons

Looking ahead, Heron has projected confidence. The company issued full-year 2026 guidance with net revenue expected to be between $173 million and $183 million, representing significant growth over 2025. It also forecast an Adjusted EBITDA of $10 million to $20 million, signaling a continued focus on profitable operations.

This guidance is supported by a strengthening financial position. Heron exceeded its previous guidance for 2025, posting an Adjusted EBITDA of $14.7 million. The company ended the year with $46.6 million in cash, cash equivalents, and short-term investments, supported by a successful refinancing in 2025 that analysts noted as a key de-risking event for its capital structure.

Heron is also investing in the future evolution of its products. The company confirmed that development of a prefilled syringe for ZYNRELEF is progressing. While FDA approval is not anticipated until mid-to-late 2027, pending stability testing and regulatory review, this next-generation presentation aims to further enhance convenience and drive deeper adoption in busy surgical settings. With its acute care strategy firing on all cylinders and key market barriers falling, Heron appears well-positioned to continue its growth trajectory and solidify its role in modern postoperative care.