Heron Therapeutics, Inc.

Good day and thank you for standing by. Welcome to the Heron Therapeutics Q1, 2026 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Melissa Jarrell, Vice President of Legal. You may begin.

Thank you, Operator, and hello, everyone. Thank you for joining us on the Heron Therapeutics conference call today to discuss the company's financial results for the first quarter of 2026. With me today from Heron are Craig Collard, Chief Executive Officer, Ira Duarte, Executive Vice President, Chief Financial Officer, Bill Forbes, Executive Vice President, Chief Development Officer, Mark Hensley, Chief Operating Officer, and Kevin Warner, Senior Vice President, Medical Affairs, Strategy and Engagement. For those of you participating via conference call, slides are made available via webcast and can also be accessed via the Investor Relations page of our website following the conclusion of today's call. Before we begin, let me quickly remind you that during the course of this conference call, the company will make forward-looking statements. We caution you that any statement that is not a statement of historical fact is a forward-looking statement. This includes remarks about the company's projections, expectations, plans, beliefs, and future performance, all of which constitute forward-looking statements for the purposes of the safe harbor provision under the Private Securities Litigation Reform Act of 1995. These statements are based on judgment and analysis as of the date of this conference call and are subject to numerous important risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties associated with the forward-looking statements made in this conference call and webcast are described in the safe harbor statement in today's press release and in Heron's public periodic filings with the SEC. Except as required by law, Heron assumes no obligation to update these forward-looking statements to reflect future events or actual outcomes and does not intend to do so. And with that, I would now like to turn the call over to Craig Collard, Chief Executive Officer of Heron.

Thanks, Melissa. Hello, everyone, and welcome to Heron Therapeutics' first quarter 2026 earnings call. Today, we're thrilled to share our financial results and provide commercial updates on our business. I'd like to begin by highlighting several key accomplishments. Coming off a strong fourth quarter 2025, we entered the new year with tremendous momentum. As expected, the first quarter of any year historically brings seasonal headwinds driven by copay resets and insurance adjustments, and this year was no exception. However, 2026 presented an additional challenge for us. Two weeks of severe weather early in the quarter that significantly compounded the typical seasonal softness, making January our most difficult month since I joined the company. The impact of the weather was felt most acutely in elective surgeries, which are highly sensitive to extreme conditions and saw a sharp decline during that period. Importantly, this was not an isolated experience. Multiple publicly traded pharmaceutical and surgical companies have reported the same weather-driven disruption across January and February. The breadth of this industry-wide impact validates that the headwinds we faced were external and temporary in nature, not reflective of any underlying weakness in our business or markets. Despite this, the team responded well. February brought a clear upward trend, and March closed strongly with over $15 million in net sales, demonstrating the underlying strength and resilience of the business. While the weather undoubtedly weighed on our Q1 results, it has not shaken our confidence in the year ahead. We fully expect the remaining deferred electric procedures to be rescheduled throughout the remainder of 2026, creating a meaningful tailwind as we progress through the year. This aligns with our historical pattern, where Q3 and Q4 consistently represent our highest volume quarters, and we anticipate 2026 will be no different. Turning to our acute care portfolio, we delivered revenue growth of 32% compared to the same period last year, with Zinrolef growing 27% and Aponvy growing over 50%, respectively. Two structural drivers are worth highlighting, our IGNITE program, the incentive program with our orthopedic distribution partners, has been very successful, and we're continuing it into 2026 as a key growth driver for Zenderless. With Oponvy, we are beginning to realize the commercial benefits of its inclusion in the fifth consensus guidelines for the management of postoperative nausea and vomiting, a meaningful clinical endorsement that we believe will serve as a sustained tailwind for adoption. We will provide additional detail later in the presentation on the strategic and commercial implications of that inclusion. Turning to our Salesforce expansion, implementation is on track for the third quarter with the recruitment already underway. We view this as a significant catalyst for growth across our portfolio, and we will walk through the strategy in more detail in the presentation. Moving on to oncology, we continue to deliver solid performance with Sinvanti despite increased competitive pressure. For the quarter, Sinvanti maintained exit market share of 25% in the NK1 category And although net sales reflected normal quarter-to-quarter timing, Sinvanti itself has remained resilient, demonstrating strong customer loyalty and continued demand even in this very competitive landscape. We have a number of new accounts coming on board in Q2 that we anticipate could add upwards of $10 million in net revenue on an annualized basis. We will cover this in greater detail as part of the commercial performance update. Before I turn things over to Mark to cover our commercial performance, I want to take a moment again to recognize the entire Heron team for their performance this quarter. We fight every day in a very competitive environment, and this quarter offered other challenges that we had no control over, yet our team continues to persevere and move forward. I will now turn the call over to Mark to cover our commercial performance. Go ahead, Mark.

Thanks, Craig. Moving to product performance, starting with our overall net sales picture for the quarter. This chart shows quarterly net revenue for each product across the last four quarters. Total net sales of $34.7 million in Q1. On the acute care side, $13.6 million combined. Zenderleff at $10.2 million. Aponvi at $3.4 million. On the oncology side, $21.1 million combined. Sinvanti at $20.5 million. Sustol at $0.6 million, reflecting the planned wind down we've previously discussed. You can see the sequential dynamics on each product. A few of these reflect ordering and channel patterns rather than changes in underlying demand. The cleaner read on adoption across all four products is the demand unit and ordering account data, which I'll cover in detail as we go. But before we get into individual product performance, there's an important strategic point on the next slide. This slide shows our net selling price per unit across the four products over the last four quarters. The Y-axis values aren't displayed. What matters is the directional trend within each product. Starting with Xenralef, net selling price has been steadily increasing across the period. Our pricing posture is holding, and the JCODE and no-pain environment are supporting that trajectory. For upon V, net price has been stable. That's what we'd expect for a product still in its growth phase, where our focus is volume penetration rather than per-unit price extraction. On Sinvanti, you'll notice the Q4 bar is slightly lower than the surrounding quarters, with Q1 returning to a level consistent with our strategy. That Q4 dynamic was temporary, and Q1 reflected normal channel ordering patterns following the Q4 activity. The more important point, our underlying pricing strategy on Sinvanti is intact and disciplined. And Sustol, declining in line with planned wind down. The headline message of this slide is straightforward. Across our active commercial products, we are maintaining pricing discipline, not chasing volume through price concessions. That's a deliberate strategic choice. It protects the long-term economics of the franchise and supports the durable recurring demand we're building. Now on to Zinnerlof. You can see the two charts on the slide. Average daily units on the left, ordering accounts on the right. Both have continued to trend up through Q1. The number I'd anchor on is demand unit growth of 22% year over year. The broader local anesthetic market was down sequentially in Q1. In that environment, Zinnerlef outgrew the market on a year-over-year basis and held share sequentially. The underlying franchise is performing. On reimbursement, the permanent J code, J0668, has been live since October. Combined with the No Paying Act framework that took effect at the start of 2025, the reimbursement environment for Zinnerlef is the cleanest it's been since launch. That framework streamlines reimbursement across approximately 110 million covered lives on the commercial side. Two quarters in, reimbursement conversations are smoother, and the friction at the billing office level continues to come down. Looking at the Q2 through Q4 drivers on the right side of the slide, Ignite has been extended throughout 2026 and expanded with Ignite 2.0, which I'll cover on the next two slides. We're also seeing expansion of users within accounts, meaning more surgeons within each adopting institution moving on to Zinnerlef as part of their protocol. And we'll be expanding our Zinnerlef sales team in Q3 2026, targeted at geographies where all three foundational drivers are fully in place, formulary access, the IGNITE program, and payer coverage. That expansion sits alongside the Apprepident Team expansion I'll cover on the APOMBI slides, reflecting our confidence in the trajectory of both franchises. On the longer-term side, our pre-filled syringe presentation is in late-stage development. Bill will cover that in more detail later in the presentation. Moving on to slide 10, here is the data behind IGNITE 1.0. The chart shows interlef unit volume across our Ignite targeted accounts. Pre-Ignite versus post-Ignite. We went from approximately 9,000 units in the last pre-Ignite quarter of last year to over 19,000 units by Q4 of last year. That's 111% growth within these targeted accounts in just two quarters of the program. This is the data that gave us the conviction to extend Ignite through 2026 and expand it further. On slide 11, you can see what Ignite 2.0 looks like. IGNITE 1.0 in the second half of 2025 covered 2,261 accounts. IGNITE 2.0, which is now live for full year 26, covers 3,109 accounts. That's a 38% increase, adding 848 additional accounts to the program. More accounts in the program means more concentrated distributor focus on the institutions we've identified as most likely to adopt and deepen Zinterlap use. The structural drivers that produced 111% unit growth in IGNITE 1.0 are now applied to a meaningfully larger base of accounts in 2026. I will now turn it over to Bill to cover the pre-filled syringe.

Thank you, Mark. This slide highlights the strong momentum in our acute care franchise and the continued advancement of the Zenerlef pre-filled syringe program. We have seen consistent and accelerating adoption across our device preparation platforms as we transition from the vented vial spike, or VVS, to the significantly improved vial access needle, or VAN. This evolution has been well received and reflects clear progress in ease of use and workflow efficiency. At the same time, market demand continues to shift toward ready-to-use systems, which are emerging as an important growth driver as hospitals prioritize efficiency safety, and streamlined operating room workflows. Independent third-party forecasts reinforce the durability of this trend, with pre-filled syringe adoption expected to scale meaningfully over time. From a program standpoint, the ZENERLEFT PFS is fully funded and on track. It was designed to align with contemporary health system expectations, including both ASHP and Joint Commission guidance. while improving operating room workflow, reducing preparation steps, and lowering the risk of medication errors and contamination. The development program is well advanced. Registration batches have been manufactured and placed on stability, and we remain on track to generate 12-month stability data in the first quarter of 2027. Mark, I'll turn it back to you.

Thanks, Bill. Now to Oponvi. There are two charts on this slide, average daily units on the left, ordering accounts on the right. Both showed continued steady upward trajectory through Q1. On the Q1 metrics, upon V demand units grew 68% year over year. Average daily units grew 70% over Q1 of last year. We exited Q1 with 371 ordering accounts in March. That's an all-time high for the product and up 67% versus March of last year. And upon V is now P&T approved in 1,903 accounts. representing 5.8 million medium to high-risk procedures annually. The last number defines the size of the addressable opportunity that Apombee has now been formally cleared into. On the growth drivers ahead, Apombee's permanent product-specific J-code became active April 1. Having a permanent, dedicated billing code in place removes a layer of reimbursement complexity for the product. We'll be expanding our dedicated to prepident sales force in Q3 2026. That team currently covers both Apombee and Sinvanti, and the expansion adds capacity to support both products. And lastly, Apombee has been prominently included in the fifth consensus guidelines for the management of postoperative nausea and vomiting. That's a meaningful clinical catalyst. I'll hand it over to Kevin to walk through the guidelines and what they mean for the product.

Thanks, Mark. We wanted to provide a brief overview to help the street understand the broader clinical and economic significance of the recently published fifth consensus guidelines for the management of postoperative nausea and vomiting. These guidelines represent an important shift in perioperative care, moving from reactive management of PONV toward a far more proactive, patient-centered prevention strategy. From a medical affairs perspective, guideline updates are highly important because they often serve as the foundation for durable institutional change. Historically, adoption occurs over time through provider education, EMR order sets, anesthesia workflows, perioperative pathways, and treatment algorithms. Once integrated into institutional protocols, these practices tend to become highly durable standards of care. Importantly, the updated guidelines substantially elevated the role of NK1 antagonists within multimodal prophylaxis strategies. Aprepitant-based therapies, including Aponvy, received an A1 evidence rating for prevention of PONV in adults, reflecting the highest level of evidence supporting efficacy and safety. Aponvy is specifically named within the guidelines as the first and only FDA-approved IV push NK1 antagonist for the prevention of PONV in adults. We believe this distinction is clinically meaningful because it combines efficacy, workflow efficiency, and ease of perioperative implementation in a way that supports both providers and patients. Another key evolution within the guidelines is the broader recommendation for multimodal prophylaxis. While patient and procedure-specific risk stratification remains central, the updated guidance recognizes that the benefit of prophylaxis often outweighs the risk of undertreatment. As a result, many institutions are expected to adopt a more liberal prophylaxis strategy across broader patient populations. The guidelines specifically recommend that patients with greater than two risk factors, representing roughly half of the surgical population, receive three to four prophylactic interventions. These medium and high-risk patients often require highly effective anti-emetic strategies without adding recovery-limiting adverse effects. We believe Opondi is uniquely positioned in this setting. Its efficacy profile combined with the differentiated safety profile that does not overlap with many commonly used anti-emetics supports use in patients where prevention matters most. Importantly, Aponvy provides anti-emetic protection without contributing to sedation or negatively impacting post-operative recovery pathways, which is increasingly important in enhanced recovery protocols and ambulatory surgery. One of the most significant additions to the fifth edition guidelines was the expanded focus on post-discharge nausea and vomiting, or PDNV. The guidelines emphasize that PONV is not simply an acute PACU complication. For many patients, symptoms occur after discharge when clinical support resources are less available. The guidelines cite data showing approximately 37% of patients may experience PDNV, with implications for dehydration, wound complications, unplanned healthcare utilization, and potential readmissions. As outpatient surgery volumes continue to expand and same-day discharge becomes increasingly common, these downstream complications become even more relevant in value-based care models. Importantly, the guidelines now recommend that patients at risk for PDNV receive prophylactic long-acting antiemetics prior to discharge. We believe the PONV aligns well with this recommendation given its 48-hour duration of action and ability to provide extended receptor coverage during the vulnerable post-discharge period. The guidelines also reinforce several important differentiators associated with the PONV and NK1 antagonist therapy more broadly. PONV is administered as a simple 30-second IV push with rapid onset and greater than or equal to 97% receptor occupancy within five minutes, integrating efficiently into standard anesthesia workflows. This becomes particularly relevant for providers who may not have had adequate preoperative time for oral administration or who are caring for patients with limitations to oral therapies, including those with gastroparesis, GLP-1 utilization, diabetes-related GI dysfunction, or altered gastric emptying. The strength of evidence supporting a prepotent-based therapy was also highlighted throughout the guidelines. Multiple randomized trials demonstrated a prepotent to be comparable or superior to ondansetron for prevention of PONV. Meta-analysis showed significant reductions in PONV risk when used alone or within multimodal regimens. In a large Cochrane systemic review evaluating nearly 100,000 patients, ranked aprepitant as the single most effective antiemetic. Importantly, the updated guidelines frame PONV prevention not simply as a patient comfort initiative, but as a meaningful clinical quality and operational issue. Poorly controlled PONV contributes to extended pachystates, rescue medication use, delayed discharge, dehydration, wound stress, aspiration concerns, and readmissions. In many high-risk procedures, including abdominal, bariatric, ENT, optimal oxygenation, and other belt-up surgeries, preventing vomiting is viewed as critically important to protecting surgical outcomes and patient safety. Appropriate prophylaxis also supports perioperative operational efficiency by reducing nursing burden, minimizing recovery delays, improving throughput, and enhancing both patient and staff satisfaction. The guidelines additionally highlighted the pharmacoeconomic value of effective prophylaxis strategies. One metric discussed was number needed to treat, or NNT. For a prepotent combined with dexamethasone, the reported NNT was 3.8, meaning approximately four patients treated prevents one additional case of PONV. Compared with many commonly used antiemetics, this represents a highly favorable value proposition. From a health system perspective, this becomes clinically and economically meaningful very quickly. A single episode of PONV has been estimated to cost approximately $1,000 when considering rescue therapy, nursing utilization, prolonged PACU time, and delayed discharge. When viewed in that context, preventing complications with an intervention costing approximately $60 per dose becomes highly rational and understandable for providers and institutions alike, particularly as value-based care models increasingly focus on patient satisfaction, throughput, readmissions, recovery quality, and total episode of care costs. Ultimately, we believe the fifth consensus guidelines reinforce several important macro trends shaping the perioperative landscape. including greater use of multimodal prophylaxis, increasing recognition of post-discharge nausea vomiting, continued migration toward outpatient surgery, demand for workflow efficiency, and the growing need for safe, effective, non-sedating, long-acting therapies that support enhanced recovery pathways, which we believe Oponvy is uniquely positioned to address. I will now turn the call back to Mark to discuss our oncology supportive care franchise.

Thanks, Kevin. Turning to oncology supportive care. There are two charts on this slide. Average daily units on the left, ordering accounts on the right. Sinvanti's average daily units have remained resilient, sustaining a consistent trend in utilization throughout 2024 and into 2026. That's a meaningful durability marker for a product in its mature commercial phase, in a category that has faced steady competitive pressure. On ordering accounts, you can see the two layers on the right chart. The blue line shows existing accounts running at approximately 1,100 every month, which speaks to the stickiness of the customer base. The purple line shows new and returning accounts averaging about 59 per month in Q1 of 26. In March specifically, 1,188 accounts ordered Sinvanti. That number was in line with the 12-month average of approximately 1,200 accounts. On market share, Sinvanti ended Q1 with 25% exit share in March of 2026. That was also in line with the 12-month average. The stability is the takeaway. We are holding our position in a competitive category. Looking at growth drivers for the rest of 2026, Craig referenced a number of new accounts coming online this year. Those new formulary wins are due to our Reignite program. It's focused on Sinvanti access in major teaching hospitals, where we have already secured formulary wins and the near-term pipeline represents approximately $10 million in new opportunities. And as I mentioned earlier, our dedicated and preparative Salesforce expansion in the third quarter of 2026 will support Sylvante as well as Aponvi. Sylvante will be promoted in the second position by that team. Now to the broader category dynamics. On the next slide, the chart shows the broader NK1 category for chemotherapy-induced nausea and vomiting over the last 12 months. The stacked bars show total category units broken out by competitor product. The percentages at the top of each bar show month-over-month volatility in the overall category. ranging from down 19% in some months to up 21% in others. The line running across the chart is Sinvanti's market share within that category. Despite all the category-level volatility, Sinvanti's share has been remarkably stable. The 12-month average is 25%. March 2026 closed at 25%. That share stability in a category where the underlying volume is highly variable month to month is the durability marker for this franchise. To wrap up the commercial section, Zinalef demand grew 22% year over year, with Ignite 2.0 expanding our targeted account base by 38% for 2026. Apamvi demand grew 68%. Ordering accounts hit an all-time high, and the fifth consensus guidelines have positioned the product as the evidence-graded standard for POMD prophylaxis. Sinvanti held a stable 25% market share in a volatile category, with Reignite building approximately $10 million of near-term pipeline. Across all of it, Our pricing discipline is intact, our structural drivers are in place, and our commercial leverage continues to expand, with both our Zinalef team and our dedicated Apprepanet team set to expand in Q3. The drivers we put in motion in 25 are working as designed, and we have line of sight to deliver on the full year framework we laid out in February. With that, I'll now turn it over to Ira.

Thank you, Mark. As Craig noted, our financial results this quarter came in modestly below plan. That said, while winter storms are outside of our control, how we manage our business in response to them is not. And disciplined cost management remains a hallmark of this team that our shareholders have come to rely on. Net revenues for the quarter were $34.7 million, with gross margin coming in at 69%, below our typical low to mid-70s percent range. As we have discussed in prior calls, we have a secondary supplier for Sylvante, and carried a contractual obligation to produce a certain inventory quantities over the past year. That secondary product is manufactured in smaller batch sizes at roughly three times the cost per batch of our primary supplier. This inventory will work its way through our system over the next two quarters, after which we will return exclusively to our primary supplier. Once those contractual obligations are fulfilled, we expect growth margins to normalize back to the mid-70% range. Adjusted EBITDA was negative $727,000 for the quarter, reflecting the combined impact of the storm-related revenue softness and the temporary gross margin pressure from our secondary Cervantes supplier. Both factors are temporary, and we expect adjusted EBITDA to return to positive territory as we move through 2026. Looking ahead, the recovery is already underway. As noted early on the call, March net revenues returned to over $15 million, a strong signal for the second quarter and one that reinforces our confidence in achieving our full-year targets. To reaffirm our 2026 guidance, we are maintaining net product sales of $173 to $183 million and adjusted EBITDA of $10 to $20 million, reflecting continued profitability alongside meaningful commercial expansion. With that, we are happy to open the call for questions.

Certainly. As a reminder, to ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please stand by while we compile our Q&A roster. Our first question will be coming from the line of Brandon Foulkes of HC Wainwright. Brandon, your line is open.

Hi. Thanks for taking my questions today. maybe just a few from me. Firstly, on your guidance, can you just talk about some of the pushes and pulls on Zinrelief that you assume to meet the overall company level revenue guidance? Do you assume Zinrelief taking market share? And then, maybe secondly, apologies if I missed this, can you just give me some details on the Baxter settlement? Just sort of what that allows, what it sort of keeps exclusivity at. Yeah, that's it from me. Oh, maybe one more. You know, you talk about friction. So can you just talk about how you meaningfully change the adoption curve, you know, across ZinRelief and upon V? And on ZinRelief, you know, it sounds like there's friction in sort of the office to decide to use ZinRelief. How do you change that ahead of the pre-fold syringe and eliminate the friction you're seeing today so that the pre-filled syringe can sort of maximize the value that it can bring.

Thank you. Hey, Brandon. Thank you for the questions. I'll start with the Baxter settlement, and then I'll turn it to Mark. Look, based on the terms of the settlement, we really can't go into the details of that other than to say that, you know, the dates and everything that had been published. But outside of that, we were just forbidden from saying anything on that. So I'll turn it over to Mark to talk about the zero left questions that you asked.

Yeah, it's a great question. I think kind of one in three are kind of part and parcel of the same. But, you know, in terms of our confidence, there are several factors that we're looking at. First, You know, we talked about the weather and the elective procedures being pushed out of January. You know, obviously, we believe those will be rescheduled throughout the year. And so certainly that'll be a nice tailwind for us. You know, as it relates to both Interlef and upon be really, you know, we're really focused on the expansion of the of the sales force in the kind of mid year. We certainly think that will help our share of voice, you know, and really kind of build upon the foundation that we've we've already built. And then Ignite 2.0, you know, you see the slides and kind of what that delivered in the third and fourth quarter of last year. And so the expansion of that by 38%, you know, in 2026, we believe will be a really nice tailwind for us as we go forward. And then, you know, on the friction piece, you know, I think for us, we don't really see accounts that don't want to use interlap. Really the hardest part for us is getting to a meaningful enough number of them to have that kind of quarter-over-quarter growth that we would want to see with the product, right? And so a lot of that is the reason why we're expanding the team in the kind of, you know, mid-year. And certainly that share of voice will continue to grow. And so because we're continuing to see market share grow within our targeted accounts, certainly within the accounts where we're aligned, not only at Heron, but within our Ignite program. You know, and so we just want to continue to expand upon that across the country.

Great, thank you very much.

And our next question will be coming from the line of Serge Ballinger of Needham & Company. Your line is open.

Hi, good morning. This is John on for surge today. Thanks for taking our questions. First, if I could just follow up on Zinrilith again with regard to the 1Q winter storm headwinds. Just curious if you could quantify the impact with regard to surgical volumes for the quarter there. And then second, on the implementation of no pain, obviously it's been online for over a year now. Curious what impacts you're seeing on commercial coverage and how this has changed over time and what you might be expecting for 26. And then if I could just squeeze one more in on the Crosslink Partnership, it seems like you're, you know, adding on to the initial IGNITE program, targeting more accounts here in 26. I'm curious if this is just, you know, throwing more muscle at the program to increase the accounts you're getting into and what else we might expect from this. Thank you.

Great. Thank you for the questions. You know, on surgical volume, You know, our data shows it's kind of high single digit decline from the fourth quarter. So pretty meaningful impact, you know, larger than we've seen in prior years. You know, we think that's part weather related, part, you know, a record Q4 from a surgical volume perspective. And maybe, you know, some of our surgical partners just taking a deep breath in the quarter. But certainly we expect that to significantly improve. And obviously some of those surgeries that were lost, we would imagine that those would be rescheduled. You know, to your second question on commercial coverage, we, you know, we obviously know pain, you know, is a great factor for Zinnerlef and certainly removes, you know, the word I've been using is friction, at least on the Medicare side, on the government payer side. And since its implementation, we've seen more and more commercial payers begin to add Zinnerlef, you know, outside of the surgical bundles, reimbursing outside of that bundle. You know, we reported the number on the call at 110 million lives is the estimate that we have on the commercial side. You know, and so, you know, kind of largely across the United States, very well covered for Zinnerlef. There are pockets, you know, where we see Zinnerlef still bundled, but certainly we have the ability to go in and have those conversations at the payer level. And for the most part, you know, they're willing to listen and make some changes for our patients. And then, you know, as it relates to Crosslink, you know, we allow them to select the accounts, you know, and so by doing so, the natural selection, you know, gave us an expansion in that program, you know, again, at 38%. And so, you know, the alignment between Heron and Crosslink now is almost 90%, you know, in terms of our focus. that's the highest it's ever been, significantly higher than the back half of 2025. And so what that really means is that we have a Heron employee in the account. We have a Crosslink employee in that account. We have really good, you know, payer coverage in those accounts. That's why they were selected. And so those three, you know, pieces of the puzzle have shown us that that's where we really, you know, have good success and are able to move Zender left forward. And so that gives us a lot of confidence for 2026.

Great. Thanks so much for the caller.

And as a reminder, to ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. I would now like to turn the conference back to Craig Collard for closing remarks.

Thank you, operator. I just want to thank everyone for joining the call today, and we look forward to speaking to you all next quarter.

And this concludes today's program. Thank you for participating. You may now disconnect.