Full Press Release Details
Therapeutics Reports Record Product Revenues for 2007
Fourth Quarter Leads to Record Revenue for 2007
Strengthens its Worldwide Joint Health Franchise with Recent Start of
U.S. Clinical Study of MONOVISC
and Launch of ORTHOVISC
BEDFORD, Mass.--(BUSINESS WIRE)--Anika Therapeutics, Inc. (Nasdaq:
ANIK), a leader in products for tissue protection, healing and repair
based on hyaluronic acid ("HA") technology, today reported record
revenue for the year ending December 31, 2007. Anika also continued to
strengthen its global position in joint health therapies with the recent
launch in Europe of ORTHOVISC mini, a HA
osteoarthritis treatment specifically targeted for smaller joints, and
the commencement of a key U.S. clinical study of its single-injection
osteoarthritis product, MONOVISC , for the relief of
Anika reported product revenue of $7,916,000 for the fourth quarter of
2007, compared with $5,078,000 in the same period last year. For the
year ended December 31, 2007, product revenue increased to $26,905,000,
compared with $23,953,000 in full year 2006. The increase in product
revenue for the quarter was primarily attributable to strong domestic
and international sales of the Company's ORTHOVISC
During the fourth quarter and year ended December 31, 2007, the Company
reported licensing, milestone and contract revenue of $1,711,000 and
$3,925,000, respectively. For the fourth quarter and year ended December
31, 2006, licensing, milestone and contract revenue was $811,000 and
$2,887,000, respectively. These increases reflect the impact of our
accounting for the termination of our previous ELEVESS
contracts with Galderma.
Total revenue for the fourth quarter of 2007 was $9,627,000, compared
with $5,889,000 in the fourth quarter of 2006. For the year ended
December 31, 2007, total revenue was a record $30,830,000, compared with
$26,841,000 in 2006.
Product Gross Margin
Product gross margin for the fourth quarter of 2007 increased to 59%
from 40% in last year's fourth quarter. Product gross margin for the
year ended December 31, 2007 was 56% versus 54% for full year 2006. The
quarter and full year improvements in gross margins were due primarily
to strong domestic ORTHOVISC sales and favorable material prices.
Net income for the fourth quarter of 2007 was $1,673,000, or $0.15 per
diluted share, compared with $1,047,000, or $0.09 per diluted share, for
the same period last year. Net income for the year ended December 31,
2007 was $6,035,000, or $0.53 per diluted share, compared with
$4,604,000, or $0.41 per diluted share, in 2006. The improvement in net
income in both the fourth quarter and full year periods was due to
increased product sales, milestones recognition, higher gross margins,
and a lower effective tax rate. The lower tax rate reflects higher state
investment tax credits as a result of Anika's ongoing investment in its
new facility, as well as increased domestic jobs creation deductions and
tax credits related to R&D spending.
Anika's cash, cash equivalents and short-term investments at December
31, 2007 were $39,406,000 compared with $47,167,000 at December 31,
2006. The decrease reflects the Company's investment in its new facility
to increase capacity, and upgrade its new product development
Management Commentary
"This has been a year of tremendous progress for Anika," said Charles H.
Sherwood, Ph.D., Anika's president and chief executive officer. "Revenue
for ORTHOVISC increased more than 110 percent in the fourth quarter and
finished strongly for the year thanks to demand in the U.S. and in
international markets during the second half of the year. We received
European CE Mark approval for our new MONOVISC single-injection
osteoarthritis product based on our proprietary cross-linking
technology, and began enrolling patients in a key U.S. clinical study of
that product for the relief of knee pain. In addition, we recently
completed the European launch of ORTHOVISC mini, our
hyaluronic acid-based osteoarthritis treatment specifically targeted to
treat smaller joints. Operationally, we expanded our R&D headcount and
made significant additions to our technical and scientific staffs. And
in November, we completed Phase 1 of our new facility in Bedford and
moved in our R&D, regulatory, marketing and administration associates."
"We have focused considerable attention on securing a distribution
partner for ELEVESS, our HA-based soft-tissue filler for facial wrinkles
and scar remediation that incorporates lidocaine," continued Sherwood.
"Interest is high among the potential partners we have met with and we
are pursuing this effort vigorously. We are also in the midst of a
marketing program targeting the dermatology community with detailed
information, samples, and training on ELEVESS, and we're pleased to
report significant interest on the part of both doctors and patients."
"We believe that we have a robust pipeline of products for our
proprietary HA technology that we can begin to leverage worldwide,"
continued Sherwood. "We look forward to introducing MONOVISC in Europe
by mid year 2008 and capitalizing on the recent launch of ORTHOVISC mini
in that region. With the progress we have made in pursuing a partner for
ELEVESS, we anticipate launching the product mid year. Additionally, we
expect that our new facility will play an important role in improving
the efficiency of our business and R&D processes in the coming year. We
look forward to 2008 with confidence in our product portfolio and expect
this to be a good year of revenue growth for Anika."
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook on Thursday, March 6, 2008, 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 888-680-0893 (International
callers dial 617-213-4859) and use the passcode 88280313. 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.