Full Press Release Details
Therapeutics Reports Record Second-Quarter Revenue and Earnings
Income Grows 58% and EPS Rise to $0.40
Phase III Osteoarthritis Clinical Study in Active Patient Recruitment
BEDFORD, Mass.--(BUSINESS WIRE)--July 31, 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 June 30, 2013.
Management Commentary
"Anika delivered the strong results we expected in the second quarter of
2013," said Charles H. Sherwood, Ph.D., President and Chief Executive
Officer. "Total revenue grew 6% from the second quarter last year,
driven by robust Orthobiologics product demand. We are also very pleased
with achieving a record second quarter net income, which represents a
58% increase from the same period last year. Our consistent delivery of
product revenue growth and planned business improvements has enabled us
to drive bottom line growth and generate robust cash flow."
"This was another strong quarter for our flagship product, Orthovisc ,
both domestically and internationally," continued Sherwood. "Orthovisc
continues to bring differentiated clinical benefits to physicians and
patients. Our U.S. distribution partner Depuy Mitek is executing on a
strategic sales and marketing plan to support patient care and enhance
physician office efficiency. The growth in our U.S. Orthovisc revenue
indicates these efforts continue to have a positive impact on product
"Anika is well-positioned for continued growth and profitability
improvement in the second half of 2013," said Sherwood. "Our
viscosupplementation business is strong, and we are driving efficiencies
in our operations and manufacturing. We are also enthusiastic about our
product pipeline. Cingal, our third generation viscosupplementation
product, is a single-injection osteoarthritis treatment which includes a
therapeutic anti-inflammatory agent. During the second quarter, we
commenced a multinational Phase III clinical study in support of our CE
Mark application for Cingal. Launching this trial is an important step
forward in our pipeline development strategy, and we look forward to
bringing Cingal into the market."
For the second quarter of 2013, total revenue grew 6.1% to $20.8
million, from $19.6 million a year earlier. The company's revenue growth
was primarily driven by increased viscosupplementation product revenue,
in particular domestic sales of Orthovisc.
Product Gross Margin
Product gross margin for the second quarter of 2013 improved to 68.5%,
from 57.2% in the second quarter last year. The improvement for the
quarter was driven by manufacturing facilities consolidation,
realization of operational efficiencies, more favorable product mix, as
well as the elimination of the non-profitable tissue engineering
operations since the beginning of 2013.
Research and development expenses for the second quarter of 2013
increased 40.9% from the second quarter of 2012. The increase reflected
expenses for the company's Cingal clinical trial and other planned
product pipeline initiatives. Selling, general and administrative
("SG&A") expenses in the second quarter of 2013 decreased by 17.2% from
the same period last year. The decline in SG&A was primarily driven by
the company's ongoing cost reduction initiatives.
Operating and Net Income
Operating income for the second quarter of 2013 grew to $9.4 million,
from $6.1 million in the same period in 2012. Net income increased to
$5.9 million, or $0.40 per diluted share, from $3.7 million, or $0.26
per diluted share, in the second quarter last year. The growth in
operating income, net income and earnings per share was primarily driven
by improvement in product gross profit.
Cash and Cash Equivalents
Anika's cash and cash equivalents at June 30, 2013 increased to $54.1
million, from $44.1 million at December 31, 2012, driven primarily by
higher income from operations, increased cash collections on accounts
receivable and option exercises during the first half of 2013.
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook tomorrow, Thursday, August 1, 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 877-546-5019 (international
callers dial 857-244-7551) and use the passcode 16226176. 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 solutions that go
beyond pain relief to protect and restore damaged tissue.
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, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. These statements