Full Press Release Details
Therapeutics Reports 20% Total Revenue Growth and Record Third-Quarter
Revenue Grows to $17.8 Million
Income Rises to $5.0 Million and EPS Increase to $0.33
BEDFORD, Mass.--(BUSINESS WIRE)--October 30, 2013--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, 2013.
Management Commentary
"This was another strong quarter for Anika, driven by continued product
revenue growth in our Orthobiologics franchise," said Charles H.
Sherwood, Ph.D., President and Chief Executive Officer. "Net income and
earnings per share rose to third-quarter record high levels, reflecting
strong demand for our viscosupplementation products as well as our
ongoing initiatives to improve performance across the business. These
results measure against a weak set of financial comparatives in the
third quarter of 2012, which reflected the temporary decline in product
shipments that we experienced in that year-earlier period."
"Our growth in Orthobiologics continues to reflect solid demand for our
flagship product, Orthovisc , in both domestic and
international markets," said Sherwood. "Our U.S. distribution partner,
DePuy Mitek, is continuing to make strategic investments in patient and
physician education and distribution channel support to expand the
Orthovisc franchise and drive sales in high-potential areas of the
viscosupplementation market. Paralleling these initiatives, our internal
commercial and business development team was active this quarter in
efforts to strengthen and expand our international Orthobiologics
distribution network."
"This was also an active quarter for Anika on the product development
front," Sherwood said. "We continued to enroll patients in our
multinational Phase III clinical study in support of our CE Mark
application for Cingal. Our third-generation viscosupplementation
product, Cingal, is a single-injection osteoarthritis treatment that
includes a therapeutic anti-inflammatory agent. In connection with the
International Cartilage Repair Society annual congress in Turkey, we
hosted a well-received symposium on our Hyalofast product as well as a
regenerative product development advisory panel meeting with world
renowned physicians in the orthopedic field."
"Given the positive demand outlook for our Orthobiologics products and
the improved efficiencies in our business, we believe that Anika is
well-positioned for continued growth and profitability improvement in
the quarters ahead," concluded Sherwood.
Total revenue for the third quarter of 2013 was $17.8 million, compared
with $14.8 million a year earlier. Anika's revenue continues to be
largely driven by increased domestic and international
viscosupplementation product sales. The favorable comparison with the
third quarter of 2012 also reflected lower product sales in that period.
This was the result of a temporary scale-up issue at Anika's Bedford
manufacturing facility during that quarter, which resulted in uneven
revenue patterns for the last two quarters of 2012.
Product Gross Margin
Product gross margin for the third quarter of 2013 improved to 68%, from
49% in the third quarter last year. This improvement reflected the
company's ongoing initiatives to realize the planned operational
efficiencies, as well as more favorable product mix and the elimination
of the company's unprofitable tissue engineering operations since the
beginning of 2013. The improvement also reflected the higher cost of
product revenue reported for the year-earlier quarter due to new
manufacturing facility scale-up activities.
Research and development expenses for the third quarter of 2013 rose 33%
from the third quarter a year earlier. The increase reflected expenses
for the company's Cingal clinical trial and other planned product
pipeline initiatives. Selling, general and administrative expenses
decreased 11% from the third quarter of 2012, primarily as a result of
the company's ongoing cost reduction initiatives, and certain
non-recurring legal expenses last year.
Operating and Net Income
Operating income for the third quarter of 2013 was $7.8 million,
compared with $2.7 million in the same period in 2012. Net income was
$5.0 million, or $0.33 per diluted share, compared with $1.6 million, or
$0.11 per diluted share, in the third quarter last year. Operating
income, net income and earnings per share were higher, year-over-year,
primarily due to the improvement in product gross profit.
Cash and Cash Equivalents
Anika's cash and cash equivalents at September 30, 2013 increased to
$64.1 million, from $44.1 million at December 31, 2012, driven primarily
by higher income from operations, increased cash collections on accounts
receivable and option exercises during the year.
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook tomorrow, Thursday, October 31, 2013 at
9:00 a.m. ET. In addition, the company will answer questions concerning
business and financial developments and trends, regulatory activity
related to Monovisc, 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 877-280-4962 (international
callers dial 857-244-7319) and use the passcode 26253796. Please call
approximately 10 minutes before the starting time and reference Anika
Therapeutics. In addition, the conference call will be available through
a live audio webcast in the "Investor Relations" section of the Anika
Therapeutics website, www.anikatherapeutics.com. An accompanying
slide presentation also can be accessed via the Anika Therapeutics
website. The conference call will be archived and accessible on the same
website shortly after the conclusion of the call.
About Anika Therapeutics, Inc.
Headquartered in Bedford, Mass., Anika Therapeutics, Inc. develops,
manufactures and commercializes therapeutic products for tissue
protection, healing, and repair. These products are based on hyaluronic
acid (HA), a naturally occurring, biocompatible polymer found throughout
the body. Anika's products range from orthopedic/joint health solutions