Full Press Release Details
| Anika Therapeutics, Inc. | PondelWilkinson Inc. | |
| Charles H. Sherwood, Ph.D., CEO | Rob Whetstone (310) 279-5963 | |
| Kevin W. Quinlan, CFO | Wade Huckabee (310) 279-5971 | |
| (781) 932-6616 |
ANIKA THERAPEUTICS REPORTS THIRD
QUARTER 2005 FINANCIAL RESULTS
WOBURN, Mass. October 18,
2005 Anika Therapeutics, Inc. (NASDAQ:ANIK) today reported financial
results for the third quarter and nine-month period ended September 30,
revenue for the third quarter was $10,058,000, a 57% increase from $6,407,000
in the third quarter of 2004. The
company posted net income of $2,531,000, or $.22 per diluted share, for the
third quarter of 2005, compared to $884,000, or $.08 per diluted share, for the
same period last year.
the nine months ended September 30, 2005, total revenue increased 30% to
$24,369,000 versus $18,810,000 in the comparable period last year. Net income was $5,071,000, or $.44 per
diluted share, compared with $9,435,000, or $.83 per diluted share, for the
nine-month period ended September 30, 2004. The company s 2004 net income includes a
one-time tax benefit amounting to $7,039,000, or $.62 per diluted share,
recorded in the first quarter of last year.
During the 2005 third
quarter and the nine-month period ended September 30, 2005, the company
recorded licensing, milestone and contract revenue of $4,059,000 and
$8,609,000, respectively. These amounts
include a final payment
of approximately $3.1 million for clinical trial development costs and a
contract termination fee in connection with the termination of the
development and commercialization contract with OrthoNeutrogena for the company s hyaluronic acid based
cosmetic tissue augmentation product.
For the 2004 third quarter and the nine-month period ended September 30,
2004, licensing, milestone and contract revenue was $853,000 and $1,997,000,
respectively. Product revenue was
$5,999,000 for the 2005 third quarter, versus $5,554,000 in the same period
last year. For the nine-month
period ended September 30,
2005, product revenue was $15,760,000 versus $16,813,000 in the comparable
Sales of the company s
product were $1,405,000 in the 2005 third quarter versus $2,113,000 in the
third quarter of 2004. For the
nine-month period ended September 30, 2005, OrthoVisc sales were
$5,998,000 versus $7,184,000 in the comparable period of 2004. Domestic OrthoVisc sales for 2005 have been
negatively impacted by high inventory levels held by the company s distribution
partner. Ophthalmic product sales for
the third quarter rose 27% to $3,999,000 versus $3,137,000 in the third quarter
of 2004, and were $8,237,000 for the first nine months of 2005 compared to
$8,200,000 for the same period last year.
Third quarter ophthalmic product sales were positively impacted by
customer restocking after the company s June 2005 product recall. Sales of the company s veterinary product,
Hyvisc , in the third
quarter of 2005 increased to $584,000 from $304,000 in the prior year
period. For the nine months ended September 30,
2005, Hyvisc sales totaled $1,413,000 versus $1,430,000 last year.
continued to work closely with our team at DePuy Mitek to develop marketing
strategies for OrthoVisc in a manner that we anticipate will both boost uptake
of the product and facilitate the reimbursement process, said Charles H.
Sherwood, Ph.D., Anika s president and chief executive officer. Additionally, we are pleased to have rapidly
met our customers needs after our second quarter setback related to the recall
of ophthalmic products, said Sherwood. Also
on the product front, as previously announced, in the third quarter we filed
the PMA with the FDA for our cosmetic tissue augmentation product and are
actively seeking a distribution partner for this product. Finally, during the third quarter we further
augmented our management ranks with a new chief financial officer and, more
recently, a new VP of business development.
We now have an experienced, committed and enthusiastic group in place to
help take Anika to the next level.
gross margin for the nine months ended September 30, 2005 was 43.7% versus
54.7% for the corresponding period in 2004, reflecting the impact of the recall
operating expenses were $2,372,000 for the third quarter of 2005, compared to
$2,445,000 in the third quarter of 2004, reflecting slightly reduced marketing
and G&A. For the nine-month period
ended September 30, 2005, total operating expenses were $7,798,000 versus
$7,192,000 in 2004, driven by greater investment in new product development and
clinical activities.
Anika s cash and cash equivalents at September 30,
2005 totaled $45,872,000 versus $39,339,000 at December 31, 2004. The company has no debt.
The company will hold a
conference call to review its financial results and business highlights on
Wednesday, October 19, 2005, at 9:00 a.m. EDT. In addition, the company may address during
the conference call its business and financial developments and trends,
including those involving product lines and business partners; and other
business and financial matters affecting the company, which may contain
information that has not been previously disclosed. To listen to the conference call, dial 706-634-1550
approximately 10 minutes before the starting time and reference Anika
Therapeutics. In addition, the
conference call will be available to interested parties through a live audio
Internet broadcast at www.anikatherapeutics.com. The call will be archived and accessible on
the same Web site for one year shortly after the completion of the call.
About Anika Therapeutics, Inc.
Headquartered in Woburn,
Mass., Anika Therapeutics, Inc. (www.anikatherapeutics.com) develops,
manufactures and commercializes therapeutic products and devices intended to
promote the repair, protection and healing of bone, cartilage and soft
tissue. These products are based on
hyaluronic acid (HA), a naturally occurring, biocompatible polymer found throughout
the body. Anika products include
a treatment for osteoarthritis of the knee available internationally and
marketed in the U.S. by DePuy Mitek and Hyvisc , a treatment for equine osteoarthritis marketed in the
U.S. by Boehringer Ingelheim Vetmedica, Inc. Anika manufactures Amvisc and Amvisc Plus ,
HA viscoelastic products for ophthalmic surgery. It also produces STAARVISC -II, which is
distributed by STAAR Surgical Company and Shellgel for Cytosol Ophthalmics, Inc.
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