Full Press Release Details
Therapeutics Reports 17% Revenue Growth in Third-Quarter 2009
Income Increases 37%
BEDFORD, Mass.--(BUSINESS WIRE)--October 27, 2009--Anika Therapeutics,
Inc. (Nasdaq: ANIK), a leader in products for tissue protection, healing
and repair based on hyaluronic acid ("HA") technology, today reported
financial results for the quarter ended September 30, 2009.
Key Third-Quarter Highlights
During the third quarter, Anika:
Grew net income by 37% year over year
Increased total revenue and product revenue by 17% and 18%,
Grew joint health revenue by 31%
Launched MONOVISC in Canada
Made progress toward filing MONOVISC PMA by end of 2009
Launched Hydrelle in United States through Coapt Systems
Anika's product revenue increased by 18% to $10,087,000 for the third
quarter of 2009, compared with $8,524,000 in the same period last year.
Product revenue for the first nine months of 2009 grew 11% to
$27,377,000 from $24,770,000 in the first nine months of 2008. The
increase in product revenue for the quarter and year-to-date periods was
attributable to strong sales of the Company's ORTHOVISC
Total revenue for the third quarter of 2009 increased 17% to $10,793,000
from $9,205,000 in the third quarter of 2008. Total revenue for the
first nine months of 2009 increased 10% to $29,517,000 compared with
$26,814,000 for the same period in 2008.
Product Gross Margin
Product gross margin for the third quarter of 2009 increased to 65% from
59% in last year's third quarter. For the first nine months of 2009,
product gross margin was 63% compared with 58% for the same period in
2008. The improvement in product gross margin was due to product mix as
well as increased manufacturing activity in preparation for moving
operations to the Bedford facility.
Other Operating Expenses
Research and development expenses increased to $2,382,000 compared with
$1,802,000 in the same period last year, and $6,863,000 for this year's
nine-month period compared to $4,955,000 for the same period last year.
The increases for both periods were due to higher regulatory and
clinical development expenses as a result of the ongoing U.S. clinical
trials for MONOVISC, the post-marketing aesthetics dermatology study in
people of color, manufacturing validation activities for the new
manufacturing facility in Bedford, as well as other continuing new
product development projects.
Selling, general and administrative expenses for the third quarter of
2009 increased to $2,843,000 from $2,567,000 for the same period last
year, and $8,614,000 for this year's nine-month period compared to
$8,516,000 for the same period last year. The quarter's increase was due
to higher professional costs. Operating expenses related to the Bedford
facility were flat year-over-year.
Net income for the third quarter of 2009 grew 37% to $1,512,000, or
$0.13 per diluted share, from $1,104,000, or $0.10 per diluted share,
for the same period last year. Net income for the first nine months of
2009 increased 18% to $2,990,000, or $0.26 per diluted share, from
$2,535,000, or $0.22 per diluted share, for the first nine months of
Anika's cash and cash equivalents at September 30, 2009 were $38,540,000
compared with $43,194,000 at December 31, 2008. The decrease in cash was
due primarily to capital expenditures at Anika's Bedford facility,
principal and interest payments on the Company's debt, increase in
accounts receivable, and inventory build needed in preparation for
relocating the existing manufacturing equipment to the Bedford facility.
Management Commentary
"Anika reported excellent results in the third quarter with a 37%
increase in net income on 17% revenue growth," said Charles Sherwood,
Ph.D., Anika's president and chief executive officer. "Our joint health
franchise continues to be the key driver of Anika's growth, with revenue
from that franchise up 31% year over year. Domestically, we recorded
very strong ORTHOVISC sales, continuing to grow our share of that
market. We expect to increase our U.S. market share to about 12% by the
"We continue to be excited about the prospects for our single-injection
osteoarthritis product, MONOVISC," said Sherwood. "We introduced
MONOVISC in the third quarter to the Canadian market through Anika's
long-term ORTHOVISC distribution partner and we continue to receive
product inquiries in new markets, such as Eastern Europe and Asia. We
recently completed the MONOVISC re-treatment study and are on-track to
complete our PMA filing by the end of the year."
"During the third quarter, we also launched our aesthetics dermatology
product, Hydrelle, in the United States through our exclusive
distribution partner, Coapt Systems," Sherwood said. "In addition to the
Hydrelle launch, we are working on expanding our aesthetic franchise
with the development of a lighter version of our product to be used for
the treatment of fine lines. We have filed for CE Mark approval and plan
to launch the new product at the beginning of 2010 in Europe.
Additionally, we are in discussions with the FDA about the pathway for
approval for the fine-line product domestically."
"As we head into the fourth quarter, we are confident that we will
deliver good revenue growth and improved profitability for full year
2009," said Sherwood. "Looking ahead, we believe that we are well
positioned to benefit from the investments we have made during the past
year. We also have a strong balance sheet and cash generating ability
that enables us to capitalize on exciting growth opportunities and
fulfill our joint health vision to alleviate pain, repair and restore
damaged tissue for long-term patient benefit."
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook on Wednesday, October 28, 2009 at 9:00
a.m. ET. In addition, the Company will answer questions concerning
business and financial developments and trends, and other business and
financial matters affecting the Company, some of the responses to which
may contain information that has not been previously disclosed.
To listen to the conference call, dial 800-798-2801 (International
callers dial 617-614-6205) and use the passcode 12413497. Please call
approximately 10 minutes before the starting time and reference Anika