Full Press Release Details
Therapeutics Reports Second-Quarter 2014 Financial Results
Revenue Grows 26% to $26.3 Million
Generates $5 Million Milestone Payment
per Share Increase to $0.60 from $0.40 a Year Earlier
BEDFORD, Mass.--(BUSINESS WIRE)--July 30, 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 June 30, 2014.
Management Commentary
"Anika made continued progress toward meeting its business goals and
delivered solid financial results in the second quarter," said Charles
H. Sherwood, Ph.D., President and Chief Executive Officer. "Total
revenue was up 26% from the second quarter last year, largely reflecting
a $5 million milestone payment associated with our U.S. license
agreement for our single-injection viscosupplementation product, Monovisc .
Net income increased 58%, driven by the milestone payment and improved
operating efficiencies."
"Operationally, our key highlight this quarter was the U.S. commercial
launch and first domestic sales of Monovisc ," Sherwood
said. "Monovisc has been well-received by the
orthopedic physician community, and it is generating results in line
with our plans. In addition, we continued to expand our international
viscosupplementation distribution network, while making solid progress
on our product pipeline with clinical and regulatory advances for
Cingal and Hyalofast ."
"Anika begins the second half of 2014 with strong momentum. We are
successfully executing our strategy to expand our global presence in
viscosupplementation. Cingal and Hyalofast are advancing toward
commercialization. We are continuing to add the organizational and
operational capabilities the company needs to expand beyond
viscosupplementation and to deliver on its growth potential in the years
ahead, and our product pipeline continues to be strong. As a result, we
believe Anika is well-positioned for continued revenue growth and
profitability in the quarters ahead," Sherwood concluded.
Anika's total revenue for the second quarter of 2014 was $26.3 million,
compared with $20.8 million in the second quarter of 2013.
Second-quarter total revenue included $5.0 million in milestone revenue
associated with Anika's U.S. license agreement for Monovisc .
Product revenue for the second quarter of 2014 was $21.3 million,
compared with $20.1 million in the second quarter last year. The
increase in product revenue versus the prior-year period reflects the
impact of product sales and royalty revenue associated with the
Company's first U.S. Monovisc sales.
Product Gross Margin and Operating Expenses
Product gross margin for the second quarter of 2014 improved to 75%,
from 69% in the second quarter of 2013. This improvement was driven by a
more favorable product mix, increased royalties from the Company's U.S.
viscosupplementation products, as well as efficiency gains and a lower
raw material cost for a key component. Total operating expenses for the
second quarter of 2014 were $11.1 million, compared with $11.4 million a
year earlier. Second-quarter research and development expenses were
approximately equal to expenses in the prior-year period. Selling,
general and administrative expenses were up 14% from the second quarter
of 2013, primarily reflecting increased headcount related expenses,
higher external professional fees and increased corporate governance
Operating and Net Income
Operating income for the second quarter of 2014 was $15.2 million,
compared with $9.4 million in the same period in 2013. Net income for
the second quarter was $9.3 million, or $0.60 per diluted share,
compared with $5.9 million, or $0.40 per diluted share, in the second
quarter of last year. Operating income, net income and earnings per
share were higher year-over-year, primarily due to increased product
gross margin, as well as milestone revenue related to the U.S. license
agreement for Monovisc .
Cash and Cash Equivalents
Anika's cash and cash equivalents at June 30, 2014 increased to $84.9
million, from $63.3 million at December 31, 2013. This $22 million
increase was driven primarily by higher income from operations,
milestone payments, and stock options exercised during the period.
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and financial outlook tomorrow, Thursday, July 31 at
9:00 a.m. ET. In addition, the Company will answer questions concerning
business and financial developments and trends, as well as other
business and financial matters affecting the Company, some of the
responses to which may contain information that has not been previously
To listen to the conference call, dial 855-468-0611 (international
callers dial 484-756-4332). In addition, the call will be available
through a live audio webcast in the "Investor Relations" section of
Anika's website, www.anikatherapeutics.com. An accompanying
slide presentation also may be accessed via the Anika Therapeutics
website. The call will be archived and accessible on the same website
shortly after its conclusion.
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 and Monovisc ,
treatments 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 Therapeutics 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