HERON THERAPEUTICS, INC. /DE/ Q4 FY2025 earnings call

• Successful completion of financing, derisking the company. - In 2025, Acute Care executed strategic initiatives like CrossLink IGNITE program, VAN launch, and ZYNRELEF J-Code implementation, with APONVIE getting dedicated sales team and inclusion in PONV guidelines. - Development front: ZYNRELEF prefilled syringe registration batches placed on stability, anticipating potential approval mid - to late 2027. - 2026 strategy: Accelerate commercial team expansion in priority geographies, increase commercial investments despite potential EBITDA moderation, as expanding coverage in traction markets can pull forward revenue.

For 2025, total net revenues were approximately $155 million. Acute Care: Fourth quarter Acute Care net sales were $16.3 million, up from $12.3 million in the third quarter. ZYNRELEF net sales increased to $12.5 million from $9.3 million in the third quarter, with 48% year-over-year growth in Q4. APONVIE net sales increased to $3.8 million from $3 million, with 97% year-over-year growth. Oncology: Full year 2025 Oncology franchise generated just over $105 million in net revenue, a modest 7.8% decline compared to 2024, mostly due to SUSTOL wind down, while CINVANTI remained resilient.

• 2026 net product sales expected to be $173 million to $183 million. - 2026 adjusted EBITDA expected to be $10 million to $20 million. - Increasing commercial investments in 2026, which may temporarily moderate EBITDA growth but are aimed at long - term revenue acceleration.

• Litigation risk related to Slayback litigation with respect to CINVANTI, awaiting judge's decision before 30 - month stay. - Potential lag in NOPAIN Act awareness and adoption affecting ZYNRELEF growth.

Q: Regarding the new guidance for 2026, expectations for CINV franchise and NOPAIN Act tailwind for ZYNRELEF?

A: Craig Collard said CINV franchise unit volume may grow but with price erosion, sales relatively flat; Mark Hensley said NOPAIN Act will continue to be beneficial.

Q: On VAN rollout and prefilled syringe launch?

A: Mark Hensley said VAN rollout went well, similar strategic approach for prefilled syringe.

Q: Thoughts on Slayback litigation and time frame?

A: Melissa Jarel said they're confident in their case, finished briefing, await oral argument, expect decision before 30 - month stay.

Q: NOPAIN Act awareness creation?

A: Craig Collard said they're expanding team to handle awareness, Mark Hensley said industry players are involved.

Q: Time frame for APONVIE growth from Fifth Consensus Guidelines?

A: Mark Hensley and Kevin Warner said it's likely back half of 2026, with 6 - 9 months to roll into order sets and protocols for sustained growth