Full Press Release Details
Therapeutics Reports 35% Total Revenue Growth in First Quarter 2010
Domestic Sales of ORTHOVISC
18% Organic Product Growth; Company Completes Initial Steps in FAB
BEDFORD, Mass.--(BUSINESS WIRE)--May 10, 2010--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 March 31, 2010.
Total revenue and product revenue grew 35% and 37%, respectively
Orthopedic/joint health revenue rose 34%, driven by strong U.S. sales
Achieved good progress on FAB integration and product rationalization
Anika's product revenue increased 37% to $11.6 million for the first
quarter of 2010, from $8.5 million in the first quarter of 2009.
Excluding revenue from Fidia Advanced Biopolymers, s.r.l. ("FAB"), which
was acquired by Anika late in the fourth quarter of 2009, product
revenue increased 18% from the year-earlier quarter. This growth was
primarily due to continued strong U.S. sales of the Company's ORTHOVISC
Total revenue for the first quarter of 2010 grew 35% to $12.5 million,
from $9.2 million in the first quarter last year.
Product Gross Margin
Product gross margin for the first quarter of 2010 was 56%, compared
with 62% in last year's first quarter. The decrease in product gross
margin largely reflected the addition of FAB products into Anika's
overall product mix.
Research and development expenses for the first quarter of 2010
decreased to $1.9 million, from $2.2 million in the first quarter of
2009. This reflected a decline in R&D spending due to the completion of
Anika's U.S. MONOVISC clinical trial in the third quarter of 2009,
partially offset by the inclusion of FAB expenses.
Selling, general and administrative expenses for the first quarter of
2010 increased to $4.3 million from $3.0 million in the same quarter of
2009, driven by the inclusion of SG&A costs at FAB. Excluding FAB,
Anika's first-quarter 2010 SG&A expenses were essentially level with the
year-earlier quarter.
Net income for the first quarter of 2010 was $714,000, or $0.05 per
diluted share, compared with $523,000, or $0.05 per diluted share, for
the same period last year. The comparison with the first quarter of 2009
was negatively impacted by the dilutive effect of the FAB acquisition.
Cash and Cash Equivalents
Anika's cash and cash equivalents at March 31, 2010 were $23.2 million,
compared with $24.4 million on December 31, 2009.
Management Commentary
"This was a great start to a year that promises to be full of milestones
for Anika," said Charles H. Sherwood, Ph.D., president and chief
executive officer. "Driven by strong domestic sales of ORTHOVISC,
organic revenue grew 18% from the first quarter of 2009. At the same
time, we made excellent progress on our key goals for 2010, highlighted
by completing the initial steps in our integration and product
rationalization plan for the Fidia Advanced Biopolymers (FAB) business
we acquired late in the fourth quarter of 2009."
"The first of our 2010 goals is to grow sales of ORTHOVISC in the United
States and internationally," said Sherwood. "ORTHOVISC continued to
perform well in the first quarter of 2010, particularly in the United
States, where sales were up 44% from the first quarter last year.
Second, we expect a U.S. launch of MONOVISC using a hybrid sales model
in the second half of 2010 following PMA approval from the FDA."
"Our third key goal for this year is to obtain FDA approval and launch
key FAB products in the United States," Sherwood said. "FAB has a broad
orthopedic portfolio that, added to ORTHOVISC and MONOVISC, should
provide us with the critical mass of products we need to more
effectively penetrate the U.S. market."
"Anika's vision is to offer therapeutic products that span the full
continuum of care - from palliative, to protective, to restorative or,
in other words, from pain relief to protecting and restoring damaged
tissue," said Sherwood. "FAB's restorative tissue technology products
will help us advance this vision. Our fourth goal for 2010 is to expand
sales of these products beyond Italy, where they are currently
commercialized, into other European markets."
"Our fifth goal for 2010 is to reduce FAB's operating loss through cost
synergies and product rationalization, positioning FAB to generate
profits in 2011," Sherwood said. "Our efforts in this area are focused
on integrating FAB's research and development pipeline and manufacturing
operations with Anika's, while rationalizing FAB's product portfolio. We
made progress in each of these areas in the first quarter, highlighted
by the first steps toward consolidation of our R&D activities on both
sides of the Atlantic."
"As we begin the second quarter, we are successfully executing on our
key goals and driving revenue growth, leveraging our HA research and
manufacturing expertise and our solid financial position," said
Sherwood. "FAB advances our vision to provide innovative therapeutic
products that go beyond pain relief, expanding our growth opportunities
and positioning us for accelerated earnings in the long-term. We are
looking forward to making further progress as 2010 unfolds."
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook tomorrow, Tuesday, May 11, 2010 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, 888-396-2356 (International callers
dial 617-847-8709) and use the passcode 66039281. Please call
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 webcast in the "Investor
Relations" section of the Anika Therapeutics website, www.anikatherapeutics.com.
An accompanying slideshow presentation also can be accessed via the
Anika Therapeutics website. The 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.