Full Press Release Details
| Contacts: | |
| Anika Therapeutics, Inc. | PondelWilkinson Klein |
| Charles Sherwood, Ph.D., CEO | Susan Klein (508) 358-4315 |
| (781) 932-6616 | Rob Whetstone (310) 279-5963 |
ANIKA THERAPEUTICS REPORTS 74% REVENUE INCREASE TO
$6.4 MILLION FOR 2004 THIRD QUARTER
Mass. October 29, 2004 Anika Therapeutics, Inc. (NASDAQ:ANIK) today
reported that revenue for the third quarter ended September 30, 2004 increased 74%
to $6,407,000 from $3,688,000 in the third quarter of 2003. The company posted net income of $884,000, or
$.08 per diluted share, for the 2004 third quarter, compared with net income of
$420,000 or $.04 per diluted share, for the 2003 third quarter.
For the nine-month period ended September 30, 2004,
revenue rose 81% to $18,810,000 from $10,390,000 for the comparable period last
year. Net income was $9,435,000, or $.83
per diluted share, for the first nine months of 2004, compared with $26,000, essentially
a break-even on a per share basis, for the first nine months of 2003. Year-to-date results for 2004 include a
one-time tax benefit amounting to $7,039,000, equal to $.62 per fully diluted
share, recorded in the first quarter.
quarter 2004 product revenue was $5,554,000, an increase of 52% from $3,666,000
for the same period last year. For the
nine months ended September 30, 2004, product revenue was $16,813,000, an
increase of 63% from $10,339,000 for the comparable period last year. Total revenue for the quarter and nine months
ended September 30, 2004 reflects licensing, milestone and contract revenue of
$853,000 and $1,997,000, respectively, which includes $550,000 and $1,650,000
attributable to the amortization of previously announced milestone payments
received in connection with the licensing and supply agreement with Ortho
Biotech, the company s U.S. marketing and distribution partner for OrthoVisc.
sales accounted for 38% of the total product sales for the third
quarter, primarily reflecting continued strength in international markets and growing
market share in the U.S. Internationally,
Turkey and Canada continue to be high performing
regions for OrthoVisc, said Charles Sherwood, PhD., president and chief
executive officer of Anika Therapeutics.
In the U.S. market, our traction to date has been slower than we would
like, but we remain enthusiastic and are working closely with our distribution
partner to further stimulate adoption and awareness for OrthoVisc.
We are making excellent strides towards advancing
two additional products through the regulatory process toward
commercialization, continued Sherwood. We
have completed enrollment in our Phase III study for Anika s cosmetic tissue
augmentation product (CTA) for correcting nasolabial folds. Our commercial partner Ortho Neutrogena is
funding this study and is working closely with us on developing possible line
extensions of hyaluronic acid-based dermatological products. Finally, our human pilot study of HA-based
INCERT for the prevention of internal adhesions or scarring
following spinal surgery is moving along nicely with 50% enrollment at two
centers in the United Kingdom.
Sales of the company s ophthalmic products accounted
for 56% of total product sales in the 2004 third quarter. These sales represented a 27% increase over
ophthalmic product sales in the third quarter of last year. Sales of Hyvisc , the company s product for
equine osteoarthritis, were down 16% for the quarter as compared to the prior
year comparable quarter, but up 47% from the second quarter. Hyvisc accounted for approximately 6% of
product sales for the period.
Gross margin on product revenue for the third
quarter of 2004 was 55.9% compared with 47.4% for the same period last year,
underscoring a continuing shift in revenue mix, increased unit volumes and
manufacturing efficiency gains.
Total operating expenses rose 79% to $2,445,000 for
the third quarter of 2004 as compared to $1,367,000 in the third quarter of
2003. Contributing to this were higher research and development expenses of $988,000
versus $482,000 in the same period last year, attributable to the ongoing clinical
trials for INCERT and CTA. In
addition, selling, general and administrative expenses related to increases in personnel
costs and professional service fees also rose during the quarter.
A provision for taxes of $734,000 related to third quarter income was
recorded. This represents a 45.3% tax
cash equivalents at September 30, 2004 totaled $34.0 million. This compares with $33.5 million at June 30,
2004 and $14.6 million at December 31, 2003.
The company continues to have no long-term debt.
Conference Call Information
company will hold a conference call to review its financial results on Friday, October
29, 2004 at 11:00 a.m. EDT. 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
http://www.anikatherapeutics.com. The call
will be archived and accessible on the same Web site for one year beginning at approximately
2:00 p.m. EDT, Friday, October 29, 2004.
About Anika Therapeutics, Inc.
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 OrthoVisc , a treatment for osteoarthritis of the knee
available internationally and marketed in the U.S. by Ortho Biotech Products,
L.P., 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, for
Bausch & Lomb. It also produces CoEase ,
which is marketed by Advanced Medical Optics, Inc., STAARVISC -II
distributed by STAAR Surgical Company and Shellgel for Cytosol
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 and
Section 21E of the Securities Exchange Act of 1934, including, without
limitation, statements that may be identified by words such as expectations, remains,
focus, expected, prospective, expanding, building, continue, progress,
efforts, hope, believe, objectives, opportunities, will, seek,
and other expressions which are predictions of or indicate future events and
trends and which do not constitute historical matters identify forward-looking
statements. These statements also