May 02, 2019
BEDFORD, Mass.–(BUSINESS WIRE)–Anika Therapeutics, Inc. (NASDAQ: ANIK), a global, integrated orthopedic and regenerative medicines company specializing in therapeutics based on its proprietary hyaluronic acid (“HA”) technology, today reported financial results for the first quarter ended March 31, 2019, and provided an update on its business progress in the period.
“Anika is off to a strong start in 2019, with double-digit revenue growth year-over-year in all product franchises and solid earnings in the first quarter,” said Joseph Darling, President and Chief Executive Officer of Anika Therapeutics. “We have made continued progress transforming Anika into a global commercial company positioned to deliver a continuum of orthopedic and regenerative medicine therapies. We strengthened our executive leadership team with the appointment of a Vice President of Research and Development and a Vice President of U.S. Sales, expanded our international commercial team and remain on track to launch our first surgically-delivered therapy for bone repair procedures in the U.S. under our hybrid commercial model in the second half of 2019. Additionally, we are pleased to return capital to shareholders through our $50 million share repurchase program.”
First Quarter Financial Results
- Total revenue for the first quarter of 2019 increased 16% year-over-year to $24.7 million, compared to $21.3 million for the first quarter of 2018. The increase was due primarily to higher global revenue from the Company’s Viscosupplement franchise and HYAFF-based products.
- U.S. and international Viscosupplement revenue each increased by 11% in the quarter as compared to 2018. The increase in U.S. Viscosupplement revenue was due primarily to the timing and volume of orders placed in the quarter, while the increase in International Viscosupplement revenue was driven principally by an 18% year-over-year increase in international revenue from single injection products.
- Total operating expenses for the first quarter of 2019 were $19.2 million, compared to $29.1 million for the first quarter of 2018. The decrease in total operating expenses was due primarily to a one-time charge of $8.4 million in the first quarter of 2018, which consisted mainly of non-cash stock-based compensation expense associated with the retirement of Anika’s former Chief Executive Officer.
- Net income for the first quarter of 2019 was $4.5 million, or $0.31 per diluted share, compared to a net loss of $6.7 million, or ($0.46) per diluted share, for the first quarter of 2018. The increase in net income was due primarily to the increase in total revenue and decrease in operating expenses previously discussed.
- Adjusted EBITDA (see description below) for the first quarter of 2019 was $8.3 million, compared to $1.2 million for the first quarter of 2018. The improvement resulted from the same factors as previously set forth for the increase in net income.
- Cash, cash equivalents and investments were $166.7 million as of March 31, 2019, compared to $159.0 million as of December 31, 2018. Cash provided by operating activities was $8.5 million for the first quarter of 2019.
Recent Business Highlights
- Strengthened the executive leadership team with the appointments of Robert Richard, Ph.D., as Vice President of Research and Development, and Stephen Goldy, as Vice President of U.S. Sales.
- Executed commercial expansion plans, including the enhancement of international business development and marketing capabilities and the acceleration of planning activities associated with the launch of its first surgically-delivered regenerative therapy for bone repair procedures in the U.S. utilizing the Company’s hybrid commercial model in the second half of 2019.
- Announced a $50 million share repurchase program, which will include a $30 million accelerated share repurchase program and up to an additional $20 million of common stock purchased on the open market.
- Continued to evaluate the clinical and regulatory path forward for CINGAL U.S. Food and Drug Administration approval, and refreshing primary market research ahead of Anika’s final decision on go forward path. The Company will provide an update on its complete assessment by the time it reports financial results for the second quarter of 2019.
- On schedule to complete a 5-year strategic plan in the third quarter of 2019, which Anika intends to unveil at its 2019 Analyst and Investor Day this fall.