Anika Therapeutics
May 3, 2017

Anika Reports First Quarter 2017 Financial Results

MONOVISC Revenue Increases 24% Year-over-Year
Total Revenue Grows 5% Year-over-Year
Commercially Launches ORTHOVISC-T in Europe

BEDFORD, Mass., May 03, 2017 (GLOBE NEWSWIRE) -- Anika Therapeutics, Inc. (NASDAQ:ANIK), a global, integrated orthopedic medicines company specializing in therapeutics based on its proprietary hyaluronic acid ("HA") technology, today reported financial results for the first quarter ended March 31, 2017, along with business progress in the periods.

"We made important progress executing our long-term growth strategy in the first quarter of 2017," said Charles H. Sherwood, Ph.D., President and Chief Executive Officer. "We finalized the clinical study design for an additional Phase III clinical trial of CINGAL, and we commenced planning and site initiation activities for the trial in the quarter. MONOVISC continued its strong momentum with revenue growth of 24% year-over-year for the quarter, and we achieved a significant milestone in our global expansion with the launch of ORTHOVISC-T in Europe."

First Quarter Financial Results

Recent Business Highlights
The Company made key commercial, operational, pipeline, and financial advancements, including:

Conference Call Information
Anika's management will hold a conference call and webcast to discuss its financial results and business highlights tomorrow, Thursday, May 4th at 9:00 am ET. The conference call can be accessed by dialing 1-855-468-0611 (toll-free domestic) or 1-484-756-4332 (international). A live audio webcast will be available in the "Investor Relations" section of Anika's website, www.anikatherapeutics.com. An accompanying slide presentation may also be accessed via the Anika website. A replay of the webcast will be available on Anika's website approximately two hours after the completion of the event.

About Anika Therapeutics, Inc.
Anika Therapeutics, Inc. (NASDAQ:ANIK) is a global, integrated orthopedic medicines company based in Bedford, Massachusetts. Anika is committed to improving the lives of patients with degenerative orthopedic diseases and traumatic conditions with clinically meaningful therapies along the continuum of care, from palliative pain management to regenerative cartilage repair. The Company has over two decades of global expertise developing, manufacturing, and commercializing more than 20 products based on its proprietary hyaluronic acid (HA) technology. Anika's orthopedic medicine portfolio includes ORTHOVISC®, MONOVISC®, and CINGAL®, which alleviate pain and restore joint function by replenishing depleted HA, and HYALOFAST®, a solid HA-based scaffold to aid cartilage repair and regeneration. For more information about Anika, please visit www.anikatherapeutics.com.

Forward-Looking Statements
The statements made in this press release, which are not statements of historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks, uncertainties, and other factors. The Company's actual results could differ materially from any anticipated future results, performance, or achievements described in the forward-looking statements as a result of a number of factors including, but not limited to, (i) the Company's ability to successfully commence and/or complete clinical trials of its products on a timely basis or at all; (ii) the Company's ability to obtain pre-clinical or clinical data to support domestic and international pre-market approval applications, 510(k) applications, or new drug applications, or to timely file and receive FDA or other regulatory approvals or clearances of its products; (iii) that such approvals will not be obtained in a timely manner or without the need for additional clinical trials, other testing or regulatory submissions, as applicable; (iv) the Company's research and product development efforts and their relative success, including whether we have any meaningful sales of any new products resulting from such efforts; (v) the cost effectiveness and efficiency of the Company's clinical studies, manufacturing operations, and production planning; (vi) the strength of the economies in which the Company operates or will be operating, as well as the political stability of any of those geographic areas; (vii) future determinations by the Company to allocate resources to products and in directions not presently contemplated; (viii) the Company's ability to successfully commercialize its products, in the U.S. and abroad; (ix) the Company's ability to provide an adequate and timely supply of its products to its customers; and (x) the Company's ability to achieve its growth targets. Additional factors and risks are described in the Company's periodic reports filed with the Securities and Exchange Commission, and they are available on the SEC's website at www.sec.gov. Forward-looking statements are made based on information available to the Company on the date of this press release, and the Company assumes no obligation to update the information contained in this press release.

 

     
Anika Therapeutics, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
     
  For the Three Months Ended March 31,
   2017   2016 
Product revenue $23,381  $22,278 
Licensing, milestone and contract revenue  5   5 
Total revenue  23,386   22,283 
      
Operating expenses:    
Cost of product revenue  6,083   5,425 
Research & development  4,230   2,159 
Selling, general & administrative  5,067    3,990 
Total operating expenses  15,380   11,574 
Income from operations   8,006   10,709 
Interest income, net  58   72 
Income before income taxes  8,064   10,781 
Provision for income taxes  2,571   3,886 
Net income $ 5,493  $6,895 
     
Basic net income per share:    
Net income $0.38  $0.46 
Basic weighted average common shares outstanding  14,576   14,875 
Diluted net income per share:    
Net income $0.37  $0.45 
Diluted weighted average common shares outstanding  15,043   15,307 
     
     
Anika Therapeutics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
     
  March 31,  December 31, 
ASSETS  2017   2016 
Current assets:    
Cash and cash equivalents $119,368  $104,261 
Investments  19,250   20,500 
Accounts receivable, net of reserves of $196 and $194 at March 31,
2017 and December 31, 2016, respectively
  21,079   27,598 
Inventories  16,180   15,983 
Prepaid expenses and other current assets  1,173   2,098 
Total current assets  177,050   170,440 
Property and equipment, net  51,593   52,296  
Long-term deposits and other  1,234   69 
Intangible assets, net  10,162   10,227 
Goodwill   7,328   7,214 
Total assets $247,367  $240,246 
      
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $6,050  $2,303 
Accrued expenses and other current liabilities  4,167   6,496 
Total current liabilities  10,217   8,799 
Other long-term liabilities  400   2,126 
Deferred tax liability  6,722   6,548 
Commitments and contingencies    
Stockholders' equity:    
Preferred stock, $.01 par value; 1,250 shares authorized, no shares
issued and outstanding at December 31, 2016 and December 31,
2015, respectively
  -   - 
Common stock, $.01 par value; 60,000 and 30,000 shares
authorized, 14,655 and 14,627 shares issued and outstanding at
March 31, 2017 and December 31, 2016, respectively
  146   146 
Additional paid-in-capital  63,719   61,735 
Accumulated other comprehensive loss  (7,025)  (7,317 )
Retained earnings  173,188   168,209 
Total stockholders' equity  230,028   222,773 
Total liabilities and stockholders' equity $247,367  $240,246 
     

 

Anika Therapeutics, Inc. and Subsidiaries
Supplemental Financial Data 
       
 
Revenue by Product Line and Product Gross Margin
(in thousands, except percentages)
(unaudited)
        
  For the Three Months Ended March 31, 
Product Line:   2017  %  2016 %
Orthobiologics $20,227 87% $19,587 88%
Surgical  1,296 5%  1,318 6%
Dermal  425 2%  381 2%
Other  1,433 6%  992 4%
Product Revenue $23,381 100% $22,278 100%
        
Product Gross Profit $17,298   $16,853  
Product Gross Margin  74%    76%  
       
        
Product Revenue by Geographic Region
(in thousands, except percentages)
(unaudited)
       
  For the Three Months Ended March 31, 
   2017 %  2016 %
Geographic Region:       
United States  $18,930 81% $18,011 81%
Europe  2,829 12%  2,565 11%
Other  1,622 7%  1,702 8%
Product Revenue $23,381 100% $22,278 100%
       

CONTACT:
Anika Therapeutics, Inc.
Charles H. Sherwood, Ph.D., President and CEO
Sylvia Cheung, CFO
Tel:  781-457-9000 

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Source: Anika Therapeutics, Inc.

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