Full Press Release Details
Therapeutics Reports Third-Quarter 2014 Financial Results
Total Revenue Grows 24% to $22.1 Million
per Share Increase to $0.40 from $0.33
BEDFORD, Mass.--(BUSINESS WIRE)--October 29, 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 September 30, 2014.
Management Commentary
"Anika continued to deliver strong financial results this quarter,
driven by growing demand for our key viscosupplementation products,
Orthovisc and Monovisc , as well as our
business performance improvement initiatives," said Charles H. Sherwood,
Ph.D., President and Chief Executive Officer. "Total revenue increased
by 24% and product revenue grew by 29% as compared to the third quarter
"We made solid progress this quarter on our strategy to increase Anika's
share of the global viscosupplementation market. Growth in U.S. sales of
our flagship multi-injection product, Orthovisc, continued to outpace
overall market growth. Our single-injection product, Monovisc, has been
steadily gaining domestic market share since its U.S. commercial launch
in the second quarter of 2014. Monovisc continues to be very well
received by the orthopedic physician community and by patients. The
improvements we expect as a result of reimbursement and access to
formularies for Monovisc should strengthen our U.S. single-injection
market position in the quarters ahead."
"On the research and development front, we further advanced our product
pipeline strategy for Cingal and Hyalofast . Patient
follow-up activities for the Cingal phase III clinical trial were
completed in September, and we quickly moved to lock the database and
begin final data analysis. During the quarter, we also received
encouraging feedback from the FDA related to our proposed
investigational device protocol for Hyalofast, which we submitted in
June 2014. Planning activities are currently underway for a Hyalofast
clinical trial to commence in the second half of 2015."
"Looking ahead to the fourth quarter, we expect continued growth in
viscosupplementation patient demand in our U.S. market, and we expect
our product revenue to grow faster than the market growth rate. At the
same time, revenue for the fourth quarter is expected to fall short of
our internal expectations due to partner ordering patterns and weaker
than expected international sales. The potential assignment of a unique
J-Code for Monovisc from CMS and its related milestone payment, does
however, provide revenue upside. Longer term, given the robust demand
for our products, as well as the improved efficiencies in our business
and our strong product pipeline, Anika is well-positioned for continued
revenue growth and profitability," Sherwood concluded.
Anika's total revenue for the third quarter of 2014 was $22.1 million,
compared with $17.8 million in the third quarter of 2013. Product
revenue was $22.0 million, compared with $17.0 million in the third
quarter last year. The increases in total revenue and product revenue
versus the prior-year period were largely driven by higher domestic and
international viscosupplementation product sales.
Product Gross Margin and Operating Expenses
Product gross margin for the third quarter of 2014 improved to 74%,
increasing from 68% in the third quarter of 2013. This improvement was
driven by a more favorable product mix and increased royalties from the
Company's U.S. viscosupplementation products, as well as efficiency
gains and cost reductions. Total operating expenses for the third
quarter of 2014 were $11.8 million, compared with $10.0 million during
the same period a year earlier. Third-quarter research and development
expenses were $2.0 million, compared with $1.6 million in the third
quarter of 2013. Selling, general and administrative expenses were up
27% from the third quarter of 2013, primarily reflecting increased
personnel-related expenses, higher external professional fees and
increased corporate governance costs.
Operating and Net Income
Operating income for the third quarter of 2014 was $10.3 million,
compared with $7.8 million in the same period in 2013. Net income for
the third quarter was $6.2 million, or $0.40 per diluted share, compared
with $5.0 million, or $0.33 per diluted share, in the third quarter last
year. Operating income, net income and earnings per share were higher
year-over-year primarily due to increased product revenue and product
Cash and Cash Equivalents
Anika's cash and investments at September 30, 2014 increased to $91.8
million, up from $63.3 million at December 31, 2013. This $28 million
increase was driven primarily by higher income from operations,
milestone payments earned by the Company, and stock options exercised
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and financial outlook tomorrow, Thursday, October 30
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
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