Heron Therapeutics Inc.

Heron Therapeutics withdrew its full-year 2026 guidance and disclosed pro forma cash of approximately $24.3 million after a September debt payment. The company reported second-quarter net revenue of $37.7 million, below its own expectations, with CINVANTI sales up sequentially and ZYNRELEF growing 35% year-over-year but both slower than anticipated. Following a U.S. District Court decision regarding certain CINVANTI patents, Heron amended its Hercules credit facility, resetting covenants through 2027 and reducing principal through a $13.5 million payment at execution and a potential further $4 million reduction by September 15. The company also paused a planned sales force expansion, tightened spending, and disclosed it is considering strategic alternatives, while preparing for potential generic competition to CINVANTI. Gross margin was 69.3%, and adjusted EBITDA was $3.2 million, with cash, cash equivalents, and short-term investments of $42.7 million at quarter-end.

H.C. Wainwright lowered its price target on Heron Therapeutics to $2 from $4 while maintaining a Buy rating after the U.S. District Court for the District of Delaware invalidated two patents covering the company's Cinvanti injectable emulsion. The ruling, issued on June 2 in litigation involving Azurity Pharmaceuticals and Slayback Pharma, was seen as a setback for Heron's intellectual property protections. The company intends to appeal the decision to the U.S. Court of Appeals for the Federal Circuit, citing confidence in its legal arguments. Heron emphasized that the ruling does not affect previously executed settlement agreements related to Cinvanti or Aponvie injectable emulsion.