Full Press Release Details
Therapeutics Reports First-Quarter 2013 Financial Results
Net Income Growth of 60%, Earnings Per Share of $0.21, and Cash
Generated from Operations of $6 Million for the Quarter
BEDFORD, Mass.--(BUSINESS WIRE)--May 1, 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 March 31, 2013.
Management Commentary
"Anika began 2013 with a solid first quarter," said Charles H. Sherwood,
Ph.D., president and chief executive officer. "Our Orthobiologics
franchise continues to be strong. Total revenue grew 6% from the first
quarter last year. Product gross margin was up substantially, which
became the primary driver for a 60% increase in net income for the
"Our growth in Orthobiologics continues to be driven by the U.S. demand
for our flagship product, Orthovisc ," said Sherwood.
"First-quarter U.S. Orthovisc revenue was up 12% from the same period
last year. This growth reflects the marketing and sales investments that
our partner, Depuy Mitek, continues to make in an effort to broaden
awareness and expand penetration of Orthovisc in both the physician and
patient communities across the country."
"Anika's operating income for the first quarter increased 64% from the
same period last year," said Sherwood. "This was driven by our continued
product revenue growth together with significant improvement in our
product gross margin, due to several key factors. They include the
elimination of dual facility costs as we closed the Woburn,
Massachusetts facility in mid-2012; the continued realization of savings
from manufacturing efficiencies at our new Bedford, Massachusetts
facility; and a more favorable product mix in the quarter compared with
the first quarter of last year."
"We are encouraged by Anika's prospects for continued growth in 2013,"
Sherwood said. "We began the year with Orthovisc positioned as the
market leader in the U.S. multi-injection segment and the number two
U.S. brand in viscosupplementation overall, and demand for Orthovisc
remains solid. We are continuing to improve the operating leverage in
our business by driving efficiencies and capitalizing on our
manufacturing improvements, and our pipeline development initiatives
remain on track." Sherwood concluded.
For the first quarter of 2013, total revenue grew 6% to $15.2 million,
from $14.4 million a year earlier. The company's revenue growth was
primarily driven by increased domestic sales of Orthovisc and Hyvisc.
Product Gross Margin
Product gross margin for the first quarter of 2013 improved 1,370 basis
points to 66.6%, from 52.9% in the first quarter last year. The
improvement for the quarter was driven by manufacturing facilities
consolidation, realization of operational efficiencies, as well as
favorable product mix. Although the company expects to continue to
benefit from the manufacturing efficiencies, the result this quarter is
not indicative of future quarters due to revenue mix.
Research and development expenses for the first quarter increased 3.2%
from the first quarter of last year. The increase reflected preparation
activities for the company's Cingal clinical trial and new product
pipeline initiatives. The increase was partially offset by non-recurring
development expenses related to Hyalograft C autograft in the first
quarter of last year. Selling, general and administrative ("SG&A")
expenses in the first quarter of 2013 increased to $4.0 million, from
$3.4 million in the first quarter of 2012. The increase in SG&A was
primarily due to personnel and external professional expenses.
Operating and Net Income
Operating income for the first quarter of 2013 increased to $5.0
million, from $3.1 million in the same period in 2012. Net income for
the first quarter of 2013 rose to $3.1 million, or $0.21 per diluted
share, from $1.9 million, or $0.14 per diluted share, in the first
quarter last year. The achievements in operating and net income, and
earnings per share are primarily driven by the improvement in our
product gross profit.
Cash and Cash Equivalents
Anika's cash and cash equivalents at March 31, 2013 increased to $51.0
million, from $44.1 million at December 31, 2012, driven primarily by
higher profits, and significant increase in cash collections on accounts
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook tomorrow, Thursday, May 2, 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 866-825-1709 (international
callers dial 617-213-8060) and use the passcode 28203075. 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 anti-adhesion and ophthalmic 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 areas such as advanced wound
treatment and ear, nose and throat care. Its regenerative technology
advances Anika's vision to offer therapeutic products and medical