Full Press Release Details
Therapeutics Reports 39% Total Revenue Growth in Fourth Quarter 2010
Revenue Rises 40%, driven by record U.S. sales of ORTHOVISC
BEDFORD, Mass.--(BUSINESS WIRE)--March 9, 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 quarter and full year ended December 31, 2010.
Product revenue up 43% for the fourth quarter
Fourth quarter Orthobiologics revenue rises 40%, driven by strong U.S.
Company receives FDA approval to launch ophthalmic product, ANIKAVISC
MONOVISC TM continues to perform well in Europe
Anika's consolidated product revenue increased 43% to $14.2 million for
the fourth quarter of 2010, from $9.9 million in the fourth quarter of
2009. Consolidated product revenue for the full year 2010 rose 41% to
$52.7 million from $37.3 million in 2009.
Excluding revenue from Fidia Advanced Biopolymers, s.r.l. ("FAB"), which
was acquired by Anika at the end of 2009 and is now renamed as Anika
Therapeutics S.r.l., product revenue grew 17% for the fourth quarter of
2010 and 18% for the full year, as compared with the comparable periods
In addition to the revenue contributed by FAB products, Anika's
consolidated and organic product revenue growth for both periods was
primarily driven by continued strong U.S. sales of the Company's
ORTHOVISC product line as well as increased
contribution from international sales of MONOVISCTM.
Total revenue for the fourth quarter of 2010 increased 39% to $14.7
million, from $10.6 million in the year-earlier quarter. For the full
year 2010, total revenue grew 38% to $55.6 million from $40.1 million in
Product Gross Margin
Product gross margin for the fourth quarter of 2010 was 53%, compared
with 64% in the fourth quarter of 2009. For full-year 2010, Anika's
product gross margin was 55%, compared with 63% last year. The decrease
in product gross margin for both periods largely reflected the addition
of FAB products, which have lower gross margins, into Anika's overall
product mix, and was also negatively affected by inventory reserves and
duplicate manufacturing expenditures during the transition from Woburn
to the Company's Bedford, Massachusetts, facility.
Research and development expenses for the fourth quarter of 2010 were
$1.4 million, compared with $1.3 million in the fourth quarter of 2009,
as the added R&D from FAB was offset by lower clinical trial costs for
the quarter. For full-year 2010, research and development expenses
decreased 16% to $6.9 million, from $8.2 million last year. The decrease
primarily resulted from the conclusion of Anika's MONOVISC clinical
trials in the third quarter of 2009, partially offset by the added FAB
Selling, general and administrative expenses for the fourth quarter of
2010 were $4.2 million, compared with $4.1 million in the same quarter
of 2009, as the added FAB costs were matched by acquisition costs
incurred by Anika in the fourth quarter of 2009. For full-year 2010,
selling, general and administrative expenses increased to $17.3 million
from $12.7 million in 2009, reflecting the inclusion of FAB's operations
in 2010. Selling, general and administrative expenses for 2009 included
$2.1 million of acquisition related costs.
Operating and Net Income
Operating income for the fourth quarter of 2010 grew 55% to $2.5
million, from $1.6 million in the same period in 2009. For full-year
2010, operating income rose 35% to $7.5 million, from $5.6 million last
Net income for the fourth quarter of 2010 increased to $1.4 million, or
$0.10 per diluted share, from $700,000, or $0.06 per diluted share, for
the same period in 2009. Anika's full-year 2010 net income was $4.3
million, or $0.32 per diluted share, compared with $3.7 million, or
$0.32 per diluted share in 2009. The Company's tax rate for 2010 was
41.2% versus 33.1% for 2009 due to the impact of FAB's losses on our
consolidated blended rate, as well as lower investment tax credits and
R&D credits in 2010 versus 2009. The comparison with the fourth quarter
and full year was also negatively impacted by the dilutive effect of an
additional 2 million shares outstanding as a result of the FAB
Cash and Cash Equivalents
Anika's cash and cash equivalents at December 31, 2010 were $28.2
million, compared with $24.4 million at December 31, 2009. The increase
was due primarily to growth in income from operations.
Management Commentary
"Anika concluded 2010 with another strong quarter on the top line and
further progress toward accomplishment of our key goals," said Charles
H. Sherwood, Ph.D., president and chief executive officer. "Driven by
increasing demand for ORTHOVISC, it was our 14th consecutive
quarter of year-over-year product revenue growth. MONOVISC continues to
sell well in Europe as we continue to work towards U.S. approval. FAB's
advanced wound care and orthopedic products are also driving growth, and
we are working to expand the distribution of FAB's restorative tissue
products internationally and advanced wound care products in the U.S.
Our integration of FAB remains on track, and we have targeted their
operations to achieve breakeven in 2011. In addition, we recently took
the first steps toward positioning Anika to successfully build its
ophthalmic product franchise over the long term by launching our own
branded product, ANIKAVISC . We look forward to
reporting continued operational progress as well as growth in margins
and earnings in 2011."
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook tomorrow, Thursday, March 10, 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, dial 866-202-4367 (International
callers dial 617-213-8845) and use the passcode 69151063. 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