Full Press Release Details
Reports Fourth Quarter and Full Year 2017 Financial Results
Global Revenue Increased 21% Year-over-Year for Fourth Quarter of 2017;
Revenue Increased 10% for Full Year of 2017
BEDFORD, Mass.--(BUSINESS WIRE)--February 21, 2018--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 fourth
quarter and full year ended December 31, 2017, along with business
progress in the periods.
"2017 was a year of significant achievement for Anika, highlighted by
double-digit revenue growth, expansion of MONOVISC and CINGAL into new
international markets, completion of the CINGAL Phase III trial
enrollment ahead of schedule, and the strengthening of our executive
team," said Charles H. Sherwood, Ph.D., Chief Executive Officer. "As we
look to 2018, we are poised to complete the CINGAL Phase III trial and
submit a New Drug Application to the FDA. Our strategic objectives are
focused on global commercial expansion, pipeline advancement, and the
development of a direct commercialization capability in the U.S. to
accelerate our revenue and earnings growth in the years ahead and to
create sustained value for our shareholders."
Fourth Quarter and Full Year Financial Results
Total revenue for the fourth quarter of 2017 was $29.4 million,
compared to $28.7 million for the fourth quarter of 2016. Total
revenue for the full year of 2017 grew 10% to $113.4 million, compared
to $103.4 million for the full year of 2016. Total revenue for the
full year of 2017 included $5.0 million in milestone revenue earned in
the second quarter as a result of MONOVISC achieving $100 million in
U.S. end-user sales within a consecutive 12-month period ending in
Product revenue increased 2% year-over-year in the fourth quarter of
2017. MONOVISC revenue grew 21% year-over-year in the fourth quarter
of 2017, which was partially offset by the decline in ORTHOVISC
revenue in the same period, following the industry shift from multiple
to single injection therapies. For the full year of 2017, product
revenue increased 5% and MONOVISC global revenue grew 29%, which was
the primary overall revenue growth driver.
International Orthobiologics revenue increased 22% for the full year
of 2017, due primarily to the global expansion of MONOVISC, as well as
the growth of CINGAL in international markets. Domestically, ORTHOVISC
and MONOVISC continued to maintain a combined market-leading position.
Total operating expenses for the fourth quarter of 2017 were $19.7
million, compared to $16.0 million for the fourth quarter of 2016. The
increase in total operating expenses was due primarily to higher
research and development investments required to advance the Company's
growing pipeline towards regulatory approvals and to expand the
commercial team in anticipation of those product launches. Total
operating expenses for the full year of 2017 were $67.7 million,
compared to $52.8 million for the full year of 2016.
Net income for the fourth quarter of 2017 was $8.1 million, or $0.53
per diluted share, compared to $8.1 million, or $0.54 per diluted
share, for the fourth quarter of 2016. Net income for the fourth
quarter of 2017 included a one-time tax benefit of $2.3 million, or
$0.15 per diluted share, resulting from the recently enacted U.S. tax
reform legislation. Net income for the full year of 2017 was $31.8
million, or $2.11 per diluted share, compared to $32.5 million, or
$2.15 per diluted share, for the full year of 2016.
Recent Business Highlights
The Company made key commercial,
operational, pipeline, and financial advancements, including:
Expanding CINGAL and MONOVISC international presence, with MONOVISC
product approvals and related commercial launches in India, Australia,
Advancing its product pipeline with completion of patient enrollment
in the CINGAL Phase III clinical study, and continued progress on
enrolling patients in the FastTRACK Phase III HYALOFAST Study for
Expanding Anika's regenerative medicine portfolio with 510(k)
clearance from the FDA for its injectable HA-based bone repair
Expanding its strategic collaboration with the Institute for Applied
Life Sciences at the University of Massachusetts Amherst to continue
the development of an innovative therapy for the treatment of
rheumatoid arthritis, and with the Institute of Integrative Biology at
the University of Liverpool to collaborate on research to develop an
injectable mesenchymal stem cell therapy for the treatment of
Completed all planned activities related to the consolidation of the
Company's global manufacturing operations at Anika's Bedford,
Massachusetts corporate headquarters.
Full Year 2018 Corporate Outlook
Looking forward to 2018, the
Company expects total revenue growth to be around the mid-single digit
percentage range for the full year of 2018. Licensing, milestone and
contract revenue is expected to be $5 million for the year. The Company
also anticipates continued headway on several key initiatives including:
Completion of the Phase III clinical trial of CINGAL, and the
submission of a New Drug Application to the FDA for CINGAL;
International expansion of MONOVISC and CINGAL;
Continued progress toward the development of a direct
commercialization capability in the U.S.; and
Expanding Anika's regenerative medicine pipeline with a new product
candidate for rotator cuff repair.
Conference Call Information
Anika's management will hold a
conference call and webcast to discuss its financial results and
business highlights tomorrow, Thursday, February 22 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