Anika Therapeutics
Jul 27, 2016

Anika Reports Second Quarter 2016 Financial Results

Total Revenue Increases 16% Year-over-Year

BEDFORD, Mass.--(BUSINESS WIRE)-- 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 second quarter ended June 30, 2016, along with business progress in the period.

"We continued our strong momentum in the second quarter, with total revenue growth of 16% year- over-year for the quarter," said Charles H. Sherwood, Ph.D., President and Chief Executive Officer. "MONOVISC end user demand remained strong, we achieved important milestones in our global expansion with the launch of CINGAL in Canada and Europe, and we continued to advance our deep and differentiated pipeline. We are well-positioned to drive future growth and create significant near- and long-term value for patients and shareholders."

Second 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, July 28th 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 www.anikatherapeutics.com.

Forward-Looking Statements

The statements made in the third and fourth bullet points 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 advancement of its pipeline, the Company's enrollment plans for its lateral epicondylosis clinical trial, and the expected timeline for completion of the Company's accelerated share repurchase program. 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 June 30,

For the Six Months Ended June 30,

  2016   2015   2016   2015
Product revenue $ 26,575 $ 22,898 $ 48,853 $ 38,413
Licensing, milestone and contract revenue   6   6   11   11
Total revenue 26,581 22,904 48,864 38,424
 
Operating expenses:
Cost of product revenue 6,065 5,275 11,490 9,588
Research & development 2,792 1,812 4,951 3,910
Selling, general & administrative   4,255   3,388   8,245   6,993
Total operating expenses   13,112   10,475   24,686   20,491
Income from operations 13,469 12,429 24,178 17,933
Interest income, net   49   24   121   48
Income before income taxes 13,518 12,453 24,299 17,981
Provision for income taxes   4,903   4,634   8,789   6,646
Net income $ 8,615 $ 7,819 $ 15,510 $ 11,335
 
Basic net income per share:
Net income $ 0.59 $ 0.52 $ 1.05 $ 0.76
Basic weighted average common shares outstanding 14,679 14,961 14,778 14,934
Diluted net income per share:
Net income $ 0.57 $ 0.51 $ 1.02 $ 0.74
Diluted weighted average common shares outstanding 15,111 15,336 15,210 15,332
 
 
Anika Therapeutics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except share data and per share data)
(unaudited)
   

June 30,

December 31,

ASSETS   2016     2015  
Current assets:
Cash and cash equivalents $ 89,125 $ 110,707
Investments 22,500 27,751
Accounts receivable, net of reserves of $220 and $167 at June 30, 2016 and December 31, 2015, respectively 24,597 21,652
Inventories 17,264 14,938
Prepaid expenses and other current assets   1,158     1,385  
Total current assets 154,644 176,433
Property and equipment, net 49,198 40,108
Long-term deposits and other 69 69
Intangible assets, net 11,259 11,656
Goodwill   7,568     7,482  
Total Assets $ 222,738   $ 235,748  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,294 $ 8,302
Accrued expenses and other current liabilities 6,638 4,778
Income taxes payable   591     4,198  
Total current liabilities   10,523     17,278  
Other long-term liabilities 1,173 781
Long-term deferred revenue 56 66
Deferred tax liability 6,570 6,775
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 1,250,000 shares authorized, no shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively - -
Common stock, $.01 par value; 60,000,000 and 30,000,000 shares authorized, 14,777,663 and 15,036,808 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively 148 150
Additional paid-in-capital 59,506 81,685
Accumulated other comprehensive loss (6,410 ) (6,649 )
Retained earnings   151,172     135,662  
Total stockholders' equity   204,416     210,848  
Total Liabilities and Stockholders' Equity $ 222,738   $ 235,748  
 

 
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 June 30,

 

For the Six Months Ended June 30,

  2016   %       2015   %     2016   %       2015   %  
Orthobiologics $ 23,304   88 % $ 19,283   84 % $ 42,891   88 % $ 31,255   81 %
Surgical 1,433 5 % 1,647 7 % 2,751 5 % 3,037 8 %
Dermal 582 2 % 303 1 % 963 2 % 719 2 %
Other   1,256   5 %   1,665   8 %   2,248   5 %   3,402   9 %
Product Revenue $ 26,575   100 % $ 22,898   100 % $ 48,853   100 % $ 38,413   100 %
 
Product Gross Profit $ 20,510 $ 17,623 $ 37,363 $ 28,825
Product Gross Margin 77% 77% 77% 75%
 
 
Product Revenue by Geographic Region
(in thousands, except percentages)
(unaudited)
 

For the Three Months Ended June 30,

For the Six Months Ended June 30,
  2016   %     2015   %     2016   %     2015   %  
Geographic Location:
United States $ 21,895 82 % $ 19,218 84 % $ 39,906 82 % $ 31,809 83 %
Europe 2,971 11 % 2,325 10 % 5,531 11 % 4,306 11 %
Other   1,709   7 %   1,355   6 %   3,416   7 %   2,298   6 %
Product Revenue $ 26,575   100 % $ 22,898   100 % $ 48,853   100 % $ 38,413   100 %

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

Source: Anika Therapeutics, Inc.

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