Full Press Release Details
Therapeutics Reports First Quarter 2014 Financial Results
$17.5 Million in Monovisc
Revenue Grows 123% to $34 Million
per Share Increase to $0.97 from $0.21 a Year Earlier
BEDFORD, Mass.--(BUSINESS WIRE)--April 29, 2014--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, 2014.
Management Commentary
"Anika started 2014 with a strong first quarter," said Charles H.
Sherwood, Ph.D., President and Chief Executive Officer. "Our total
revenue more than doubled from the first quarter last year, materially
driven by milestone and contract revenue associated with our U.S.
license agreement for Monovisc . This revenue growth
together with the impact of our ongoing productivity improvements in
operations resulted in a significant year-over-year increase in Anika's
earnings for the quarter."
"Our first quarter was highlighted by the FDA approval of Monovisc
and the product's U.S. commercial launch," Sherwood said. "The launch is
proceeding as we expected and delivering encouraging early results,
including a first commercial sale in the market in April. With both
Monovisc and Orthovisc in our
portfolio, we are more effectively leveraging our worldwide
viscosupplementation brand recognition and strengthening our leadership
in both domestic and international markets."
"We also made progress on our product pipeline in the first quarter,"
said Sherwood. "We are on schedule to complete our ongoing multinational
Cingal clinical trial. At the same time, we continued advancing forward
on our mission to make HyalofastTM available as a one-step
cartilage repair solution in the United States. These efforts focused on
preparations for a HyalofastTM human clinical trial to
commence later this year in support of a submission to the FDA."
"Looking ahead, we remain positive and excited about our outlook for
2014. Anika is on track to meet its business goals. These include U.S.
commercial launch of Monovisc , clinical success and
European regulatory advancement of Cingal , as well as clinical progress
on HyalofastTM and our longer-term pipeline opportunities. In
addition, we will continue to add the talent we need at both the
leadership and operational levels to drive our expansion beyond
viscosupplementation and deliver on Anika's growth potential. We believe
Anika is well-positioned for continued revenue growth and profitability
in the quarters ahead," Sherwood concluded.
Total revenue for the first quarter of 2014 was $34.0 million, compared
with $15.2 million in the first quarter of 2013. First-quarter 2014
total revenue included $19.7 million in milestone and contract revenue
associated with Anika's U.S. license agreement for Monovisc ,
as the development obligations under the agreement were fully delivered
prior to the end of the quarter. This primarily consisted of a milestone
payment related to the product approval and successful resolution of
patent litigation. Revenue for the first quarter of 2014 also included
an initial U.S. stocking order for Monovisc in
preparation for the product's U.S. commercial launch. Anika's product
revenue for the first quarter of 2014 was $14.4 million, at a level
similar to the first quarter last year and consistent with our
expectation. Product revenue in the first quarter of 2014 reflected
order timing by our major distributors and is not indicative of product
revenue growth rates in subsequent quarters of 2014.
Product Gross Margin and Operating Expenses
Product gross margin for the first quarter of 2014 improved to 70%, from
67% in the first quarter of 2013. This improvement was primarily driven
by more favorable product mix as well as continued efficiency gains.
Total operating expenses for the first quarter of 2014 were $10.1
million, compared with $10.2 million a year earlier. Research and
development expenses increased 45% from the first quarter of 2013,
reflecting expenses for the company's Cingal clinical trial and other
planned product pipeline initiatives. Selling, general and
administrative expenses decreased 12% from the first quarter of 2013,
primarily reflecting certain nonrecurring external professional and
personnel expenses in the year-earlier quarter.
Operating and Net Income
Operating income for the first quarter of 2014 was $23.9 million,
compared with $5.0 million in the same period in 2013. Net income for
the first quarter of 2014 was $15.0 million, or $0.97 per diluted share,
compared with $3.1 million, or $0.21 per diluted share, in the first
quarter last year. Operating income, net income and earnings per share
were higher year-over-year, primarily due to operating leverage on our
sales volume and the milestone and contract revenue related to Monovisc
Cash and Cash Equivalents
Anika's cash and cash equivalents at March 31, 2014 increased to $82.2
million, from $63.3 million at December 31, 2013. The approximately $19
million increase in cash and cash equivalents reflected a $17.5 million
milestone payment from DePuy Synthes Mitek Sports Medicine for the
irrevocable resolution of the Company and Snaofi/Gemzyme's patent
litigation and the related FDA approval of Monovisc .
The cash balance increase was driven primarily by higher income from
operations, cash collections on accounts receivable, and option
exercises during the period.
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook tomorrow, Wednesday, April 30, 2014 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 855-468-0611 (international
callers dial 484-756-4332). 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 can also be accessed via the Anika