Anika Reports Third Quarter 2024 Financial Results

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Anika Therapeutics Inc.
Anika Therapeutics Inc.

Updating 2024 fiscal year guidance to reflect announced changes to business strategy, including the sale of Arthrosurface and planned divestiture of Parcus Medical, and U.S. OA Pain Management headwinds

Strategy to focus on market leading OA Pain Management and high-growth Regenerative Solutions

Company to categorize revenue into OEM Channel and Commercial Channel; Commercial Channel remains on track to achieve ~17% CAGR since 2021 with recent performance fueled by the IntegrityTM Implant System, which grew 40%+ sequentially in the third quarter with more than 500 surgeries since launch

First module of Hyalofast® PMA filed in October; important hurdle addressed regarding Cingal® NDA filing path

BEDFORD, Mass., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Anika Therapeutics, Inc. (NASDAQ: ANIK), a global joint preservation company in early intervention orthopedics, today reported financial results for its third quarter ended September 30, 2024.

Third Quarter 2024 Results

Anika announced third quarter revenue of $38.8 million declining 7% compared to the same period in 2023. U.S. OA Pain Management revenue was down 5% in the quarter. This decline was primarily due to reduced market access and competitive pricing pressures faced by the Company’s U.S. OA Pain Management partner, J&J Medtech, and softer performance in the Arthrosurface and Parcus Medical businesses, which Anika has exited and plans to exit, respectively. Anika’s Monovisc® and Orthovisc® products remain the leader in the U.S. viscosupplement market and J&J is taking steps to stabilize this revenue channel. The decreased U.S. OA Pain Management revenue, which will be included in the OEM Channel going forward, was offset by 7% growth in international OA Pain Management revenue, which will be included in the Commercial Channel going forward.

As expected, the revenue from Anika’s Regenerative Solutions business was strong, increasing 17% in the quarter, led by more than 40% sequential growth in the Integrity Implant System. In the quarter, Integrity was implanted in approximately 200 surgeries, with over 20% of the surgeons new to Anika. More than 500 cases have been performed globally since the launch of this flagship Regenerative Solutions product. Anika is actively developing new line extensions of Integrity for use in additional tendon applications. To support the growth of Integrity, Anika will continue to invest in and expand its commercial sales force within its Commercial Channel. These investments will build the infrastructure needed to launch new near-term Regenerative Solutions products and Hyalofast, Anika’s single stage, off the shelf hyaluronic acid (HA) cartilage repair product, in the U.S. by 2026.