Anika Therapeutics
Oct 28, 2015

Anika Therapeutics Reports Robust Financial Performance and Continued Progress on Key Fronts in Third Quarter of 2015

Company Achieves 37.5% Year-over-Year Diluted EPS Growth in Quarter

BEDFORD, Mass.--(BUSINESS WIRE)-- Anika Therapeutics, Inc. (NASDAQ: ANIK), a global, integrated orthopedics medicines company specializing in therapeutics based on its proprietary hyaluronic acid ("HA") technology, today reported financial results for the third quarter ended September 30, 2015, along with business progress in the period.

"Our third quarter sales and profits were driven by strength in end-user demand, which together with continuing pipeline progress, provides a robust foundation for future growth," stated Charles H. Sherwood, Ph.D., President and Chief Executive Officer. "Our viscosupplementation portfolio, anchored by ORTHOVISC® and MONOVISC®, continues to grow and is poised to take and hold greater leadership in the market. We believe this strong positioning, along with our steady pipeline progress during the quarter, sets our company up to deliver financial results and shareholder value for the long term."

Third Quarter Financial Results

Recent Business Highlights

During the quarter, the Company continued making pipeline and operational progress, including, as follows:

Conference Call Information

Anika management will hold a conference call and webcast to discuss its financial results, business highlights and financial outlook tomorrow, Thursday, October 29th 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, Mass. Anika is committed to improving the lives of patients with degenerative orthopedic diseases and traumatic conditions by providing clinically meaningful therapeutic pain management solutions along the continuum of care, from palliative care to regenerative medicine. The Company has over two decades of expertise developing, manufacturing and commercializing more than 20 products, in markets across the globe, based on its proprietary hyaluronic acid (HA) technology. Anika's orthopedic medicine portfolio is comprised of marketed (ORTHOVISC® and MONOVISC®) and pipeline (CINGAL® and HYALOFAST® in the U.S.) products to alleviate pain and restore joint function by replenishing depleted HA and aiding cartilage repair and regeneration. For more information about Anika, please visit http://www.anikatherapeutics.com.

Forward-Looking Statements

The statements made in the second paragraph and the first bullet point in the section captioned "Recent Business Highlights," of 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 include, but are not limited to, those relating to the company's product pipeline and growth opportunities and its leadership position in the viscosupplementation market. 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 (i) the Company's ability to successfully commence and/or complete clinical trials of its products, including for HYALOFAST or for expanded indications of the Company's MONOVISC product, 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 or 510(k) 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 operate 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; (x) the Company's ability to continue to successfully manage Anika Therapeutics S.r.l.'s business; and (xi) the Company's ability to achieve its growth targets.

                           
Anika Therapeutics, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2015 2014 2015 2014
Product revenue $ 23,675,696 $ 21,975,312 $ 62,088,410 $ 57,593,873
Licensing, milestone and contract revenue   5,561   80,111   16,732   24,746,497
Total revenue 23,681,257 22,055,423 62,105,142 82,340,370
 
Operating expenses:
Cost of product revenue 5,175,723 5,724,800 14,763,222 15,418,732
Research & development 2,061,689 1,999,867 5,971,771 6,160,740
Selling, general & administrative   3,308,731   4,044,538   10,301,886   11,401,399
Total operating expenses   10,546,143   11,769,205   31,036,879   32,980,871
Income from operations 13,135,114 10,286,218 31,068,263 49,359,499
Interest income, net   33,667   9,937   81,297   16,339
Income before income taxes 13,168,781 10,296,155 31,149,560 49,375,838
Provision for income taxes   4,788,916   4,125,355   11,434,581   18,872,435
Net income $ 8,379,865 $ 6,170,800 $ 19,714,979 $ 30,503,403
 
Basic net income per share:
Net income $ 0.56 $ 0.42 $ 1.32 $ 2.09
Basic weighted average common shares outstanding 14,967,322 14,758,781 14,944,921 14,626,933
Diluted net income per share:
Net income $ 0.55 $ 0.40 $ 1.29 $ 1.97
Diluted weighted average common shares outstanding 15,315,808 15,434,875 15,310,758 15,469,237
 

         
Anika Therapeutics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
September 30, December 31,
ASSETS   2015   2014  
Current assets:
Cash and cash equivalents $ 108,469,021 $ 100,155,864
Investments 22,007,370 6,750,000
Accounts receivable, net of reserves of $135,618 and $146,618 at September 30, 2015 and December 31, 2014, respectively 23,375,657 17,152,028
Inventories 12,075,157 12,406,776
Prepaid income taxes - 412,301
Current portion deferred income taxes 1,409,328 1,188,768
Prepaid expenses and other   947,119     959,305  
Total current assets 168,283,652 139,025,042
Property and equipment, at cost 57,667,111 53,619,589
Less: accumulated depreciation   (23,869,798 )   (21,950,706 )
33,797,313 31,668,883
Long-term deposits and other 69,020 69,042
Intangible assets, net 12,987,683 14,894,710
Goodwill   7,713,039     8,338,699  
Total Assets $ 222,850,707   $ 193,996,376  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,220,734 $ 1,201,226
Accrued expenses 6,547,775 4,747,526
Deferred revenue 33,948 24,510
Income taxes payable   4,442,342     -  
Total current liabilities   13,244,799     5,973,262  
Other long-term liabilities 803,571 893,935
Long-term deferred revenue 73,964 102,192
Deferred tax liability 8,974,122 8,929,890
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 1,250,000 shares authorized, no shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively - -
Common stock, $.01 par value; 30,000,000 shares authorized, 15,011,512 and 14,851,703 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively 150,115 148,517
Additional paid-in-capital 81,052,103 77,539,699
Accumulated other comprehensive loss

(6,066,627

) (4,494,800 )
Retained earnings  

124,618,660

    104,903,681  
Total stockholders' equity   199,754,251     178,097,097  
Total Liabilities and Stockholders' Equity $ 222,850,707   $ 193,996,376  

                               
Anika Therapeutics, Inc. and Subsidiaries
Supplemental Financial Data
 
 
Revenue by Product Line and Product Gross Margin
(unaudited)
 

 

Quarter Ended September 30,

 

Nine Months Ended September 30,

 

 

2015

      %      

 

 

2014

      %    

2015

      %  

 

     

2014

  %  
Orthobiologics $ 20,461,181 86 % $ 18,899,873 86 % $ 51,716,600 83 % $ 48,750,277 85 %
Dermal 412,357 2 % 401,355 2 % 1,131,657 2 % 938,966 1 %
Surgical 1,413,039 6 % 1,452,946 6 % 4,449,639 7 % 4,581,496 8 %
Ophthalmic 344,119 1 % 366,138 2 % 1,263,582 2 % 938,134 2 %
Veterinary     1,045,000       5 %   855,000       4 %   3,526,932       6 %   2,385,000   4 %
Total Product Revenue   $ 23,675,696       100 % $ 21,975,312       100 % $ 62,088,410       100 % $ 57,593,873   100 %
 
 
Product gross profit $ 18,499,973 $ 16,250,512 $ 47,325,188 $ 42,175,141
Product gross margin 78 % 74 % 76 % 73 %
 
 
Total Product Revenue by Geographic Region
(unaudited)
 

 

Quarter Ended September 30,

 

Nine Months Ended September 30,

 

 

2015

      %           2014       %     2015       %           2014   %  
Geographic Location:
United States $ 19,239,247 81 % $ 18,455,167 84 % $ 51,048,132 82 % $ 48,282,945 84 %
Europe 1,976,751 8 % 1,784,414 8 % 6,293,965 10 % 5,267,317 9 %
Other   2,459,698       11 %   1,735,731       8 %   4,746,313       8 %   4,043,611   7 %
Total Revenue $ 23,675,696       100 % $ 21,975,312       100 % $ 62,088,410       100 % $ 57,593,873   100 %

Anika Therapeutics, Inc.
Christopher Ranjitkar, 781-457-9000
IR & Corporate Communications Manager

Source: Anika Therapeutics, Inc.

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