Full Press Release Details
Therapeutics Reports Strong Revenue Growth for First Quarter 2008
Rise 39%, with Gains Across All Product Lines
Health Revenues Increase by 56% on Strong Domestic and European Sales
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 strong
revenue growth for the quarter ending March 31, 2008. Each of the
company's product lines experienced double-digit revenue increases
during the quarter. Anika continued to strengthen its global position in
joint health therapies with well-received initial response in Europe of
ORTHOVISC Mini, its new HA osteoarthritis
treatment specifically targeted for smaller joints, and progress on a
key U.S. clinical study of its single-injection osteoarthritis product,
MONOVISC , for the relief of knee pain.
Anika's product revenue increased by 46% to $7,868,000 for the first
quarter of 2008, compared with $5,374,000 in the same period last year.
The increase in product revenue for the quarter was primarily
attributable to strong domestic and international sales of the Company's
ORTHOVISC product line, as well as double digit gains
from its line of ophthalmic surgery and equine osteoarthritis products.
Total revenue for the first quarter of 2008 was $8,549,000, compared
with $6,138,000 in the first quarter of 2007, an increase of 39%.
Product Gross Margin
Product gross margin for the first quarter of 2008 increased to 59% from
54% in last year's first quarter. The improvement in gross margins was
due primarily to unit growth and strong domestic and international
Other Operating Expenses
Research and development expense increased 78% to $1,508,000 compared to
the same period last year, primarily due to clinical trials in the U.S.
and Europe for MONOVISC, scale-up activities for MONOVISC in
anticipation of a mid-year launch in Europe, and development activities
in joint health and ELEVESS line extensions. The increased activity was
led by senior management team additions in regulatory and clinical
affairs, and in R&D.
Selling, general and administrative expense increased 95% to $3,069,000
compared to the same period last year, primarily due to increased
headcount and marketing expenses in connection with new products in our
joint health and aesthetic franchises; costs at the Bedford facility
which commenced on May 1, 2007 and thus weren't a factor in Q1 2007; and
increased professional fees related to strategic projects, corporate
governance, and shareholder protection matters.
Net income for the first quarter of 2008 was $618,000 or $0.05 per
diluted share, compared with $1,201,000, or $0.11 per diluted share, for
the same period last year. The decrease in net income in the first
quarter was due to higher operating expenses as outlined above, as well
as lower net interest income due to a general decline in interest rates,
our move last summer to U.S. Treasury securities, and fewer dollars
invested due to our facility project.
Anika's cash, cash equivalents and short-term investments at March 31,
2008 were $38,953,000 compared with $39,406,000 at December 31, 2007.
This decrease reflects the Company's investment in its new Bedford,
Massachusetts facility to increase capacity, and upgrade its new product
development capabilities. In February 2008, the Company borrowed
$4,000,000 in connection with its Bedford facility build-out, and it
expects to borrow a total of up to $16,000,000 by the time the build-out
Management Commentary
"This has been an exciting and productive start to the year for Anika,"
said Charles H. Sherwood, Ph.D., Anika's president and chief executive
officer. "Each of our product lines performed well during the first
quarter, with revenue for our flagship joint health product line,
ORTHOVISC, up by 56 percent compared with the first quarter of 2007.
During the quarter, we made continued progress in our search for a
distribution partner for ELEVESS, our HA-based soft-tissue filler for
facial wrinkles and scar remediation that incorporates lidocaine,"
continued Sherwood. "We are in the advanced stages of discussions with
several highly qualified potential partners that have started formal due
diligence efforts. We also are continuing with our U.S. outreach program
targeting key opinion leaders in the dermatology community. They report
that ELEVESS is easy to use and has been very well received by patients
in terms of procedure comfort and outcome. We expect we will be able to
begin launching ELEVESS by mid-year.
"We also began enrolling patients in a pivotal trial in the U.S. of
MONOVISC for the relief of knee pain," said Sherwood. "MONOVISC is our
new single-injection osteoarthritis treatment based on Anika's
proprietary cross-linking technology and we are looking toward a
mid-year introduction in Europe of this important new product with key
product champions at the European Society of Sports Traumatology, Knee
Surgery and Arthroscopy (ESSKA) 2000 Congress in Portugal next month.
"Our focus at Anika remains on long term growth, making the investments
needed to leverage our industry-leading HA technology into new
products," concluded Sherwood.
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook on Thursday, May 1, 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 888-680-0869 (International
callers dial 617-213-4854) and use the passcode 74292651. 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.
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