Full Press Release Details
Reports Third Quarter 2018 Financial Results
Drives Strong International Viscosupplement Revenue Growth
Solid Bottom Line Performance with $0.53 Diluted EPS
BEDFORD, Mass.--(BUSINESS WIRE)--October 24, 2018--Anika Therapeutics,
Inc. (NASDAQ: ANIK), a global, integrated orthopedic and regenerative
medicines company specializing in therapeutics based on its proprietary
hyaluronic acid ("HA") technology, today reported financial results for
the third quarter ended September 30, 2018, and provided an update on
its business progress in the period.
"Anika delivered solid financial results in the third quarter, while
continuing to take important steps to accelerate revenue growth in 2019
and beyond," said Joseph Darling, President and Chief Executive Officer
of Anika Therapeutics. "We are encouraged by the continued advances we
are making across our deep pipeline and diverse commercial portfolio.
During the quarter, CINGAL end user demand in Canada and Europe remained
strong, and we were pleased to add four new distribution partners to
further expand our commercial reach in Europe, Asia and South America.
Focused international expansion efforts enabled us to realize a 31%
year-over-year increase in international Viscosupplement revenue while
we continued to generate strong earnings and cash flow. As we prepare to
discuss the pathway for U.S. regulatory approval for CINGAL with the
U.S. Food and Drug Administration in the first quarter of 2019, we
believe Anika is well-positioned to transform into a global commercial
company increasingly capable of generating significant value for our
patients and shareholders."
Third Quarter Financial Results
Total revenue for the third quarter of 2018 was $26.8 million,
compared to $27.2 million for the third quarter of 2017. The
year-over-year decline was due primarily to the impact from the
voluntary recall of HYALOFAST, HYALOGRAFT-C, and HYALOMATRIX announced
Global Viscosupplement revenue increased 2% year-over-year for the
third quarter of 2018, while international Viscosupplement revenue
increased 31% during the same period. The increases were primarily due
to the growth of CINGAL in international markets, as well as the
continued global expansion of Viscosupplement products overall.
Total operating expenses for the third quarter of 2018 were $18.2
million, compared to $16.9 million for the third quarter of 2017. The
increase in total operating expenses was due primarily to higher
production costs and increased personnel and professional costs.
Net income for the third quarter of 2018 increased to $7.6 million, or
$0.53 per diluted share, compared to $6.9 million, or $0.46 per
diluted share, for the third quarter of 2017. The increase in net
income was due primarily to the reduction in R&D expenses as a result
of the completion of the CINGAL 16-02 study and lower income tax
Recent Business Highlights
Continued to work with external regulatory and legal experts to seek
regulatory approval of CINGAL in the U.S. market. Anika plans to meet
with the U.S. Food and Drug Administration (FDA) in the first quarter
of 2019 and is developing multiple strategies to enable the company to
move forward expeditiously once it has received guidance from the FDA
regarding the pathway for CINGAL.
Advanced the Company's product pipeline with the completion of
preclinical development activities for its regenerative therapy for
rotator cuff repair.
Strengthened Anika's international product distribution network and
expanded the Company's commercial reach with four new distribution
partners in Europe, Asia and South America.
Continued to evaluate potential partnership opportunities for the
Company's expansive product pipeline as part of the ongoing work on
its 5-year strategic plan.
Convened an international distributor meeting at the Company's
European headquarters to align key growth objectives and market
approach strategies for 2019.
Appointed Cheryl Blanchard, Ph.D., and Susan Vogt as new independent
members of the Company's Board of Directors.
Full Year 2018 Revised Corporate Outlook
available information, the Company anticipates full year product revenue
to be approximately 3% below prior year. The Company continues to expect
that it will resume the shipment of products that were the subject of
the previously-disclosed voluntary recall by the end of this year. Total
operating expenses are now expected to be reduced to the high $80
million range for the full year of 2018 as a result of successful cost
control initiatives.
Conference Call Information
Anika's management will hold a
conference call and webcast to discuss its financial results and
business highlights today, Wednesday, October 24 at 5:00 pm 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 and regenerative
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
tissue 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 the last