Anika Therapeutics (ANIK) Q4 2024 Earnings Call March 13, 2025 12:31 AM ET Company Participants Matt Hall - Director - Investor RelationsCheryl Blanchard - President & CEOSteve Griffin - EVP, CFO & TreasurerMichael Petusky - Managing Director Conference Call Participants Jim Sidoti - Analyst Operator Good evening, ladies and gentlemen. Welcome to Anakus Fourth Quarter and Year End Earnings Conference Call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a quest ...

Revenue Performance - Anika reported fourth quarter revenue from continuing operations of $30.6 million, a 1% increase compared to the same period in 2023[2]. - Full year 2024 total revenue from continuing operations was $119.9 million, a decrease of 1% relative to full-year 2023[3]. - Commercial Channel revenue increased by 17% year-over-year, while OEM Channel revenue decreased by 8% for the full year 2024[3]. - Revenue for Q4 2024 was $30,602 million, a 1.4% increase from $30,175 million in Q4 2023[29]. - For the three months ended December 31, 2024, total revenue was $30,602 million, a slight increase from $30,175 million in the same period of 2023[43]. - For the year ended December 31, 2024, total revenue was $119,907 million, slightly decreasing from $120,792 million in 2023[43]. Profitability and Margins - Adjusted EBITDA for the full year 2024 was $15.5 million, with an adjusted gross margin of 64%[10]. - Gross profit decreased to $17,125 million in Q4 2024, down 17.5% from $20,672 million in Q4 2023[29]. - Adjusted EBITDA for Q4 2024 was $3,586 million, down from $6,369 million in Q4 2023[36]. - The company reported an unadjusted gross margin of 56% for Q4 2024, down from 69% in Q4 2023[34]. - Gross profit for the year ended December 31, 2024, was $75,998 million, down from $82,532 million in 2023[43]. - Gross margin for the year ended December 31, 2024, was 63%, compared to 68% in 2023[43]. Expenses and Losses - Total operating expenses for Q4 2024 were $17,831 million, a decrease of 6.5% compared to $19,074 million in Q4 2023[29]. - Net loss for Q4 2024 was $21,865 million, significantly improved from a net loss of $63,000 million in Q4 2023[29]. - Adjusted net loss from continuing operations for Q4 2024 was $(332) million, compared to an adjusted net income of $980 million in Q4 2023[38]. Cash and Assets - Anika maintained a strong financial position with $55.6 million in cash and no debt at the end of the fourth quarter[10]. - Cash and cash equivalents decreased to $55,629 million in 2024 from $68,740 million in 2023[31]. - Total assets decreased to $202,740 million in 2024 from $270,632 million in 2023[32]. - Retained earnings dropped to $71,667 million in 2024 from $128,052 million in 2023[32]. Channel Performance - OEM Channel revenue for the three months ended December 31, 2024, was $19,669 million, accounting for 64% of total revenue, compared to 71% in the same period of 2023[43]. - Commercial Channel revenue increased to $10,933 million for the three months ended December 31, 2024, representing 36% of total revenue, up from 29% in the same period of 2023[43]. - The OEM Channel contributed $77,770 million for the year ended December 31, 2024, representing 65% of total revenue, down from 70% in 2023[43]. - The Commercial Channel generated $42,137 million for the year ended December 31, 2024, which is 35% of total revenue, an increase from 30% in 2023[43]. Growth and Strategic Initiatives - The Integrity Implant System achieved greater than 40% sequential growth for the third consecutive quarter, with over 1,000 surgeries performed globally since its launch[5]. - International OA Pain Management grew by 22% in the fourth quarter and 16% for the full year 2024, driven by geographic expansion and market share gains[5]. - Anika achieved significant regulatory milestones for Hyalofast, with a US launch anticipated by 2026[6]. - The company completed the strategic sale of Parcus Medical to focus on core HA products, enhancing resource allocation for growth opportunities[14]. - The company expects 2025 revenue guidance for the Commercial Channel to be between $47 million and $49.5 million, representing a 12% to 18% increase[13]. - The company is focusing on improving gross margins and exploring new market opportunities to enhance overall performance[43].

Core Insights - Anika Therapeutics reported financial results for the fourth quarter and full year 2024, achieving revenue in line with guidance, with a notable 17% increase in Commercial Channel revenue compared to 2023 [1][3][4]. Financial Performance - Fourth quarter revenue from continuing operations was $30.6 million, a 1% increase from the same period in 2023, with Commercial Channel revenue up 25% driven by the Integrity Implant System and International OA Pain Management [2][3]. - For the full year 2024, total revenue from continuing operations was $119.9 million, a decrease of 1% compared to 2023, while Commercial Channel revenue increased by 17% [3][4]. - OEM Channel revenue decreased by 8% for both the fourth quarter and the full year, consistent with company guidance [2][3]. Product and Market Developments - The Integrity Implant System achieved over 40% sequential growth for three consecutive quarters, with more than 300 surgeries performed in the fourth quarter, totaling over 1,000 globally since its launch [5][6]. - International OA Pain Management grew by 22% in the fourth quarter and 16% for the full year, attributed to geographic expansion and market share gains [5]. - Anika's Monovisc and Orthovisc products continue to lead the US viscosupplement market, with efforts to maintain pricing and market leadership [2]. Strategic Initiatives - The company completed the strategic sale of Parcus Medical to refocus resources on higher return programs [1][14]. - Significant regulatory and clinical milestones were achieved for key pipeline programs, including Hyalofast and Cingal, with plans for further clinical studies and regulatory filings [6][7][8]. Financial Position - By the end of the fourth quarter, Anika had a cash balance of $56 million and no debt, indicating a strong financial position [10]. - The company repurchased $5.6 million in common stock under its stock repurchase plan, completing an initial $15 million plan ahead of schedule [9][10].

BEDFORD, Mass., March 07, 2025 (GLOBE NEWSWIRE) -- Anika Therapeutics, Inc. (NASDAQ:ANIK), a global leader in the Osteoarthritis Pain Management and Regenerative Solutions space focused on early intervention orthopedics, today announced the completion of the previously announced planned divestiture of its Parcus Medical business. Management Commentary"The sale of Parcus marks a critical step forward as we achieve the goals of our previously announced strategic review. We are better positioned than ever to f ...

Core Viewpoint - Anika Therapeutics, Inc. will release its fourth quarter and year-end 2024 financial results on March 12, 2025, followed by an investor conference call to discuss these results and business highlights [1]. Company Overview - Anika Therapeutics, Inc. is a global joint preservation company focused on early intervention orthopedic care, utilizing expertise in hyaluronic acid and implant solutions [3]. - The company aims to provide minimally invasive products that enhance active living, particularly in high opportunity areas such as Osteoarthritis Pain Management and Regenerative Solutions [3]. - Anika's operations are headquartered outside of Boston, Massachusetts, and its products are delivered efficiently in key care sites, including ambulatory surgery centers [3]. Conference Call Details - The investor conference call can be accessed via a toll-free domestic number or an international number, with a specific conference ID provided for participants [2]. - A live audio webcast and presentation materials will be available on Anika's Investor Relations website, and the call will be archived for later access [2].

Company Overview - Anika Therapeutics, Inc. is a global joint preservation company focused on early intervention orthopedic care [3] - The company specializes in hyaluronic acid and implant solutions, aiming to provide minimally invasive products for active living [3] - Anika's operations are headquartered outside of Boston, Massachusetts, and it targets high opportunity areas within orthopedics, such as Osteoarthritis Pain Management and Regenerative Solutions [3] Upcoming Event - Dr. Cheryl Blanchard, President and CEO of Anika, will present at the Canaccord Genuity 2025 Musculoskeletal Conference on March 10, 2025 [1] - The presentation will be available via live webcast and archived for 30 days on Anika's website [2] - Management will also engage in one-on-one investor meetings during the conference [1]

Company Overview - Anika Therapeutics, Inc. is a global joint preservation company focused on early intervention orthopedics, specializing in advancements in orthopedic care [3] - The company leverages expertise in hyaluronic acid and implant solutions to provide minimally invasive products aimed at restoring active living [3] - Anika's operations are headquartered outside of Boston, Massachusetts, and the company targets high opportunity areas within orthopedics, including Osteoarthritis Pain Management and Regenerative Solutions [3] Upcoming Event - Dr. Cheryl Blanchard, President and CEO of Anika, will present at the 43rd Annual J.P. Morgan Healthcare Conference on January 16, 2025, at 9:45am PT / 12:45pm ET [1] - Management will also engage in one-on-one investor meetings during the event [1] - The presentation will be available via live webcast and archived for 30 days on Anika's website [2]

Core Viewpoint - Anika Therapeutics, Inc. is actively engaging with investors through participation in multiple upcoming conferences, showcasing its commitment to transparency and investor relations [1][2][3][4]. Group 1: Upcoming Conferences - Anika Therapeutics will present at the 36th Annual Piper Sandler Healthcare Conference in New York on December 3rd, with Dr. Cheryl Blanchard and Steve Griffin scheduled to present at 10:30am ET [2]. - The company will also participate in the Sidoti Small-Cap Virtual Conference on December 5th, where Steve Griffin is set to present at 10:45am ET [3]. - On December 11th, Anika will take part in The Benchmark Company 13th Annual Discovery One-on-One Investor Conference in New York, with both Dr. Cheryl Blanchard and Steve Griffin involved in one-on-one investor meetings [4]. Group 2: Company Overview - Anika Therapeutics is a global joint preservation company focused on early intervention orthopedic care, leveraging expertise in hyaluronic acid and implant solutions [5]. - The company aims to provide minimally invasive products for Osteoarthritis Pain Management and Regenerative Solutions, targeting high opportunity spaces within orthopedics [5]. - Anika's global operations are headquartered outside of Boston, Massachusetts, emphasizing its strategic location for healthcare innovation [5].

Revenue Performance - Revenue for Q3 2024 was $38.75 million, a decrease of 7% compared to $41.47 million in Q3 2023[82] - Revenue for the first nine months of 2024 was $121.20 million, down 2% from $123.69 million in the same period of 2023[82] - Revenue from the OA Pain Management product family decreased by 2% for both Q3 and the first nine months of 2024 compared to the same periods in 2023[84] - Revenue from the Joint Preservation and Restoration product family decreased by 11% in Q3 2024 and by 1% in the first nine months of 2024 compared to the same periods in 2023[85] - Revenue from the Non-Orthopedic product family decreased by 24% and 11% for the three- and nine-month periods ended September 30, 2024, compared to the same periods in 2023[86] Profitability and Loss - Gross profit for Q3 2024 was $1.44 million, a significant decline of 94% from $24.94 million in Q3 2023, resulting in a gross margin of only 4%[82] - Gross profit for the three-month period ended September 30, 2024 decreased by $23.5 million to $1.4 million, and for the nine-month period, it decreased by $23.3 million to $53.4 million[87] - Gross margin for the three- and nine-month periods ended September 30, 2024 was 4% and 44%, respectively, down from 60% and 62% in the same periods of 2023[88] - Net loss for Q3 2024 was $29.92 million, a 355% increase from a net loss of $6.58 million in Q3 2023[82] - Net loss for the three- and nine-month periods ended September 30, 2024 was $29.9 million and $34.5 million, respectively, compared to a net loss of $6.6 million and $19.7 million in the same periods of 2023[94] - Adjusted net loss for the three months ended September 30, 2024, was $3.8 million, a decrease of $7.1 million compared to the same period in 2023[110] Expenses - Operating expenses for Q3 2024 totaled $29.46 million, a decrease of 10% compared to $32.62 million in Q3 2023[82] - Research and development expenses for the three- and nine-month periods ended September 30, 2024 were $7.2 million and $22.8 million, respectively, down from $7.8 million and $25.1 million in the same periods of 2023[89] - Selling, general and administrative expenses for the three- and nine-month periods ended September 30, 2024 were $19.1 million and $60.4 million, respectively, compared to $24.8 million and $75.5 million in the same periods of 2023[91] - A non-cash impairment charge of $3.1 million was recorded in the three-month period ended September 30, 2024, due to the decline in fair value of the Arthrosurface reporting unit[92] Cash Flow and Financial Position - Cash and cash equivalents were $62.4 million as of September 30, 2024, down from $72.9 million at December 31, 2023[113] - Cash provided by operating activities was $3.8 million for the nine-month period ended September 30, 2024, compared to cash used of $5.4 million in the same period in 2023[116] - Cash used in investing activities increased to $7.0 million for the nine months ended September 30, 2024, from $3.6 million in the same period in 2023[117] - Cash used in financing activities was $7.4 million for the nine months ended September 30, 2024, compared to $6.7 million in the same period in 2023[118] - The company has a credit facility of up to $150.0 million, with no outstanding borrowings as of September 30, 2024[114] Strategic Initiatives - The company completed the sale of Arthrosurface for a non-interest bearing promissory note of $7.0 million and potential future revenue payments based on sales performance[77] - The company plans to divest the Parcus Medical business to focus on core HA technology and regenerative solutions[78] - The company is actively engaging with the FDA for regulatory approval of Cingal, a next-generation OA pain management product[79] Adjusted Metrics - Adjusted gross profit for the three- and nine-month periods ended September 30, 2024 decreased to $25.0 million and $77.8 million, respectively, with adjusted gross margins of 65% and 64%[102] - Adjusted EBITDA for the three-month period ended September 30, 2024 increased by $0.7 million compared to the same period in 2023, while for the nine-month period, it increased by $4.5 million[105] - Adjusted diluted EPS for the nine months ended September 30, 2024, decreased by $0.38 to $(0.01) compared to $0.37 in the same period in 2023[112] Accounting Policies - There have been no significant changes to critical accounting policies or estimates since the last annual report[119] - The decrease in adjusted net income was primarily due to lower revenues from strategic ordering patterns with higher margin customers[111] Future Outlook - The company expects cash requirements to increase as operations expand, but believes current cash flows and resources are sufficient for ongoing investments[113]

Anika Therapeutics, Inc. (NASDAQ:ANIK) Q3 2024 Earnings Conference Call October 31, 2024 8:30 AM ET Company Participants Matt Hall - Director, Corporate Development and IR Cheryl Blanchard - President and CEO Steve Griffin - EVP, CFO and Treasurer Conference Call Participants Jim Sidoti - Sidoti & Co. Mike Petusky - Barrington Research Operator Good morning, ladies and gentlemen, and welcome to Anika's Third Quarter Earnings Conference Call. [Operator Instructions]. I would like to remind everyone that this ...