Full Press Release Details
Therapeutics Reports First Quarter 2009 Results
Rise 8% Led By Strong ORTHOVISC
Health Revenues Climb 25%
BEDFORD, Mass.--(BUSINESS WIRE)--April 29, 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 ending March 31, 2009.
During the first quarter, Anika:
Continued to strengthen its global position in joint health therapies
with the domestic and international expansion of its flagship joint
health product, ORTHOVISC ;
Increased both total revenues and product revenues by 8%; and
Grew joint health revenues by 25%.
Anika's product revenue increased by 8% to $8,519,000 for the first
quarter of 2009, compared with $7,868,000 in the same period last year.
The increase in product revenue for the quarter was primarily
attributable to strong domestic and international sales of the Company's
ORTHOVISC product line, as well as gains from MONOVISC sales.
Total revenue for the first quarter of 2009 increased 8% to $9,200,000
from $8,549,000 in the first quarter of 2008.
Product Gross Margin
Product gross margin for the first quarter of 2009 increased to 62% from
59% in last year's first quarter. The improvement in gross margins was
due primarily to the growth in joint health product revenue, resulting
in a more favorable product mix.
Other Operating Expenses
Research and development expense increased to $2,194,000 compared with
$1,508,000 in the same period last year, primarily due to the U.S.
clinical trials for MONOVISC, manufacturing validation activities at the
Bedford facility, and other development activities in joint health and
aesthetics. Selling, general and administrative expense was $3,035,000
compared with $3,069,000 in the same period last year.
Net income for the first quarter of 2009 was $523,000, or $0.05 per
diluted share, compared with $618,000, or $0.05 per diluted share, for
the same period last year. The decrease in net income in the first
quarter was due to the current lower interest rate environment.
Anika's cash and cash equivalents at March 31, 2009 were $40,427,000
compared with $43,194,000 at December 31, 2008. The decrease in cash was
due to greater working capital needs, and planned capital expenditures,
as well as a payment for the Company's debt obligation related to the
Management Commentary
"Anika began the year with another quarter of solid revenue growth,
driven primarily by our joint health franchise," said Charles H.
Sherwood, Ph.D., Anika's president and chief executive officer.
"Revenues for joint health were up by 25 percent with strong domestic
and international contributions."
"After having completed the enrollment for our U.S. pivotal clinical
trial for Anika's new single-injection osteoarthritis treatment,
MONOVISC, and as we did with ORTHOVISC, we initiated a follow-up
reinjection study for the product," said Sherwood. "In this study, we
plan to re-treat approximately two-thirds of the initial patients in
order to demonstrate the safety of repeat injections. We are on-track to
file for marketing approval for MONOVISC in the U.S. by the end of this
"Looking forward, we plan to continue to capitalize on strong trends in
joint health as we broaden our presence through an increasing number of
distributors and an expanding suite of innovative products," said
Sherwood. "Even in the short term, we believe that patients will turn to
ORTHOVISC and other HA procedures to postpone expensive and debilitating
knee replacement surgery during this recessionary period. We continue to
look forward to generating revenue growth and improved income in 2009."
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook on Thursday, April 30, 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 866-788-0542 (International
callers dial 857-350-1680) and use the passcode 37421541. 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 Internet broadcast at www.anikatherapeutics.com.
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. 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 include ORTHOVISC , a
treatment for osteoarthritis of the knee available internationally and
marketed in the U.S. by DePuy Mitek; HYVISC , a
treatment for equine osteoarthritis marketed in the U.S. by Boehringer
Ingelheim Vetmedica, Inc.; the ELEVESS family of aesthetic dermatology
products for facial wrinkles, scar remediation and lip augmentation;
AMVISC , AMVISC Plus, STAARVISC -II and
Shellgel injectable viscoelastic HA products for ophthalmic surgery;
INCERT , an HA-based anti-adhesive for surgical
applications; ORTHOVISC mini a treatment for
osteoarthritis targeting small joints and available in Europe; MONOVISC
a single-injection osteoarthritis product based on Anika's proprietary
cross-linking technology and also available in Europe and Turkey; and
next generation products for joint health and aesthetic dermatology
based on the Company's proprietary, chemically modified HA.
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 and Section 21E of the
Securities Exchange Act of 1934, including, without limitation,
statements that may be identified by words such as "expectations,"
"remains," "focus," "expected," "prospective," "expanding," "building,"