Full Press Release Details
Therapeutics Reports 33% Revenue Growth in Third Quarter 2011
per share grow 144% to 22
product revenue rises 35%, driven by growing Orthovisc
BEDFORD, Mass.--(BUSINESS WIRE)--November 2, 2011--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 third quarter ended September 30,
For the third quarter of 2011, Anika's revenue increased 33% to $18.5
million, from $13.9 million in the third quarter of 2010. This growth
was driven by strong domestic and international sales of the company's
flagship product, Orthovisc , as
well as increased shipments of Anika's ophthalmic and advanced wound
For the nine-month period ended September 30, 2011, total revenue
increased 13% to $46.3 million, from $40.8 million in the same period
Operating and Net Income
Operating income for the third quarter of 2011 increased to $4.8
million, from $2.1 million in the same period in 2010. Net income rose
to $3.0 million, or $0.22 per diluted share, from $1.2 million, or $0.09
per diluted share, in the third quarter of 2010. Anika's effective tax
rate for the third quarter of 2011 declined to 37.6% from 41.9% for the
third quarter last year, primarily due to lower effective taxes on our
For the nine-month period ended September 30, 2011, net income rose 87%
to $5.6 million, or $0.41 per diluted share, from $3.0 million, or $0.22
per diluted share, in the first nine months of 2010. This increase was a
result of higher revenue, lower clinical study spending, and cost
savings initiatives implemented in the past 21 months.
Product Gross Margin
Product gross margin for the third quarter of 2011 improved to 58%, from
54% in the third quarter last year. This improvement was driven by
higher production volume.
For the nine-month period ended September 30, 2011, product gross margin
was flat with the prior-year period at 56%.
Research and development expenses for the third quarter of 2011 declined
to $1.5 million, from $1.8 million in the third quarter last year. The
decrease in R&D expense was primarily due to lower clinical study
spending compared to last year's third quarter. R&D spending is expected
to increase in future quarters. Selling, general and administrative
expenses increased to $4.7 million, from $3.9 million in the third
quarter a year ago. The increase in SG&A expenses was primarily due to
foreign exchange losses on euro denominated assets caused by the
strengthening of the U.S. dollar in September 2011.
Cash and Cash Equivalents
Anika's cash and cash equivalents at September 30, 2011 rose to $29.0
million, from $28.2 million at December 31, 2010, mainly as a result of
Management Commentary
"Fueled by 35% growth in product revenue and continued operational
streamlining, this was an excellent quarter for Anika," said Charles H.
Sherwood, Ph.D., president and chief executive officer. "Our product
revenue growth was driven by strong U.S. and international sales of
Orthovisc, as well as increased shipments of our ophthalmic products and
the advanced wound care products from Anika S.r.l. that we have added to
our dermal franchise, highlighted by Hyalomatrix .
In addition to contributing to our top-line growth, Anika S.r.l.
continued to reduce its net loss in the third quarter."
"The FDA recently commenced its inspection of our manufacturing facility
in Bedford, Mass.," added Sherwood. "And we are scheduled to complete
the migration of the majority of our manufacturing from Woburn, Mass.,
to Bedford in the first quarter of 2012. Overall, we are well on our way
toward making 2011 a successful year for Anika."
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook tomorrow, Thursday, November 3, 2011 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 888-873-4896 (international
callers dial 617-213-8850) and use the passcode 79317701. 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
led by Orthovisc, a treatment for osteoarthritis of the knee, to
surgical aids in the ophthalmic and anti-adhesion fields. The company
also offers aesthetic dermal fillers for the correction of facial
wrinkles. Anika's Italian subsidiary, Anika S.r.l, provides
complementary HA products in orthopedic/joint health and anti-adhesion,
as well as therapeutics in new areas such as advanced wound treatment
and ear, nose and throat care. Anika S.r.l.'s regenerative tissue
technology advances Anika's vision to offer therapeutic products that go
beyond pain relief to protect and restore damaged tissue.
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, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, including, without
limitation, statements that may be identified by words such as
"remains," "focus," "expect," "prospective," "expanding," "building,"
"continue," "progress," "plan," "efforts," "hope," "believe,"
"objectives," "opportunities," "will," "seek," and other expressions
which are predictions of or indicate future events and trends and do not
constitute historical matters. These statements also include