Full Press Release Details
Therapeutics Reports Second-Quarter 2009 Results
Unit Sales of ORTHOVISC
to Record Quarterly Level
Health Product Revenues Climb 17%
Income Increases 18%
BEDFORD, Mass.--(BUSINESS WIRE)--July 22, 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 ended June 30, 2009.
Key Second-Quarter Highlights
During the second quarter, Anika:
Completed the evaluation period of its pivotal clinical trial for
MONOVISC in the United States; On track to complete
PMA filing with FDA in 2009
Signed distribution partner for aesthetic dermatology product in the
Delivered strong year-over-year and sequential sales growth in its
joint health care franchise
Anika's product revenue increased by 5% to $8,771,000 for the second
quarter of 2009, compared with $8,379,000 in the same period last year.
Product revenue for the first six months of 2009 grew 6% to $17,290,000
from $16,246,000 in the first six months of 2008. The increase in
product revenue for the quarter and year to date periods was primarily
attributable to strong domestic sales of the Company's ORTHOVISC product
line, as well as increases in MONOVISC sales.
Total revenue for the second quarter of 2009 increased 5% to $9,524,000
from $9,060,000 in the second quarter of 2008. Total revenue for the
first six months of 2009 increased 6% to $18,724,000 compared with
$17,609,000 for the same period in 2008.
Product Gross Margin
Product gross margin for the second quarter of 2009 increased to 62%
from 57% in last year's second quarter. For the first six months of
2009, product gross margin was 62% compared with 58% for the same period
in 2008. The improvement in product gross margin was due to a
combination of strong sales in the Company's joint health franchise as
well as a favorable product mix.
Other Operating Expenses
Research and development expense increased to $2,286,000 compared with
$1,645,000 in the same period last year, and $4,481,000 for this year's
six month period versus $3,153,000 for the same period last year. The
increases for both periods were primarily due to the higher expenses for
the ongoing U.S. clinical trials for MONOVISC, the commencement of a
post-marketing aesthetics dermatology study in people of color,
manufacturing validation activities for our Bedford facility, as well as
other continuing new product development projects.
Selling, general and administrative expense for the second quarter of
2009 decreased to $2,736,000 from $2,880,000 for the same period last
year, and $5,771,000 for this year's six month period versus $5,949,000
for the same period last year. The decreases for both periods were
primarily due to lower personnel costs and marketing expenses, which
more than offset the increase in operating expenses related to the new
manufacturing facility in Bedford.
Net income for the second quarter of 2009 grew 18% to $956,000, or $0.08
per diluted share, from $813,000, or $0.07 per diluted share, for the
same period last year. Net income for the first six months of 2009
increased 3% to $1,478,000, or $0.13 per diluted share, from $1,430,000,
or $0.12 per diluted share, for the first six months of 2008.
Anika's cash and cash equivalents at June 30, 2009 were $39,550,000
compared with $43,194,000 at December 31, 2008. The decrease in cash was
due primarily to capital expenditures on its Bedford facility, principal
and interest payments on the Company's debt, and inventory build needed
in preparation for relocating some of the equipment to the Bedford
Management Commentary
"We generated steady sequential and year-over-year top-line growth in
the second quarter of the year, driven by strong domestic sales of our
flagship joint health product, ORTHOVISC," said Charles H. Sherwood,
Ph.D., Anika's president and chief executive officer. "In fact, our
commercialization partner, DePuy Mitek, delivered a 34% year-over-year
increase in unit growth to a record quarterly level."
"During the quarter we completed the clinical segment of the U.S.
pivotal trial for MONOVISC, our single-injection osteoarthritis
product," Sherwood said. "We are now focused on completing the
retreatment study for MONOVISC, which is designed to evaluate the
benefit of repeat treatments. All of our target patient population have
been retreated, and we expect to complete this follow-on study around
the end of the third quarter. We have already filed two of four modules
for the PMA for MONOVISC and are on schedule to file the remaining two
with the FDA by the end of the year. We are very enthusiastic about the
prospects for this innovative product."
"Another key operational highlight of the second quarter was the signing
of an exclusive U.S. distribution agreement with Coapt Systems for our
aesthetic dermatology franchise," said Sherwood. "Coapt has a
complementary product line and a sales force that is highly experienced
in the technical sales of facial aesthetic products, particularly to
plastic surgeons. They have completed sales training with more than 50
sales professionals, and we expect Coapt Systems to relaunch our product
in the current third quarter."
"Based on our first-half financial performance and our outlook for the
second half of the year, we continue to expect to generate good revenue
growth and improved profitability in 2009," said Sherwood. "Looking
further ahead, we are confident that the investments we are making in
Anika will result in accelerated growth in 2010 and beyond."
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook on Thursday, July 23, 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 866-356-3377 (International
callers dial 617-597-5392) and use the passcode 85495129. Please call