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Anika Therapeutics reported 2Q23 orthopedic sales of $42 million, +16% compared to the second quarter of 2022. The company generated $78.1 million in orthopedic sales for the first half of 2023, +12.7% compared to the prior year period.
Outsized growth in its orthobiologics business stemmed primarily from favorable order timing from J&J Mitek. However, the business showed underlying momentum for Monovisc, and Cingal continued its growth trend in more than 35 markets outside the U.S. Anika expects the next-generation OA pain market served by Cingal to represent a $1 billion opportunity.
The company’s Joint Preservation and Restoration category grew in the mid-single-digits on early growth from recent launches like X-Twist and RevoMotion. However, those products remain very early in the sales ramp, with RevoMotion not reaching full market release until September.
Still, Anika isn’t getting ahead of itself with respect to product launches and selling. Its hybrid salesforce is a key component of containing costs, but also revealed some weaknesses in the company’s distribution strategy.
“We try to be very thoughtful about our spend,” said Anika Therapeutics CEO Dr. Cheryl Blanchard. “That’s why we’ve gone with that hybrid salesforce so that we don’t have the full burden of the full fixed cost of a fully-owned sales force. I’ll tell you that the distributors that are really focused on us are growing and growing nicely. [But] many of our distributors were focused on the large growth opportunities there in the last quarter. And so, getting kind of anniversarying through the bolus of patients that are coming through the system post-COVID with large joint, I think, gets us to a better day and gets us refocused.”
The company adjusted its outlook for 2023 orthopedic sales. It now expects its Joint Preservation and Restoration business to finish slightly lower due to the slower sales ramp through the hybrid sales force. However, momentum in its OA Pain business will lead to higher-than-expected 2023 sales for those products. All told, Anika expects 2023 orthopedic sales between $150 million and $153 million, representing growth between 3.5% and 5.6% versus 2022.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated by ORTHOWORLD on an as-reported basis.
Orthopedic Sales by Segment
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $7.8 | $7.5 | $0.3 | 4.2% |
| Knees | $1.5 | $1.4 | $0.1 | 4.7% |
| Extremities | $6.4 | $6.1 | $0.3 | 4.2% |
| Sports Medicine | $4.8 | $4.6 | $0.2 | 5.4% |
| Orthobiologics | $29.3 | $24.1 | $5.2 | 21.8% |
| Total | $42.0 | $36.2 | $5.8 | 16% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $16.2 | $15.0 | $1.1 | 7.4% |
| Knees | $3.0 | $2.8 | $0.2 | 5.5% |
| Extremities | $13.2 | $12.2 | $1.0 | 7.8% |
| Sports Medicine | $10.0 | $9.2 | $0.8 | 8.4% |
| Orthobiologics | $52.0 | $45.1 | $6.9 | 15.3% |
| Total | $78.1 | $69.3 | $8.8 | 12.7% |
Orthopedic Sales by Geography
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $31.2 | $27.1 | $4.1 | 15% |
| OUS | $10.8 | $9.1 | $1.7 | 19.1% |
| EMEA | $5.4 | $4.8 | $0.6 | 11.4% |
| ROW | $5.5 | $4.3 | $1.2 | 27.9% |
| Total | $42.0 | $36.2 | $5.8 | 16% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $57.1 | $51.2 | $5.9 | 11.5% |
| OUS | $21.0 | $18.0 | $2.9 | 16.1% |
| EMEA | $10.8 | $10.1 | $0.7 | 7% |
| ROW | $10.2 | $8.0 | $2.2 | 27.6% |
| Total | $78.1 | $69.3 | $8.8 | 12.7% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $42.0 | |
| Cost of Sales | $14.8 | 35.2% |
| R & D | $21.3 | 50.6% |
| Selling and Admin | $7.0 | 16.6% |
| Other | $1.8 | 4.3% |
| Net Earnings | ($2.8) | (6.8%) |
Anika Therapeutics reported 2Q23 orthopedic sales of $42 million, +16% compared to the second quarter of 2022. The company generated $78.1 million in orthopedic sales for the first half of 2023, +12.7% compared to the prior year period.
Outsized growth in its orthobiologics business stemmed primarily from favorable order timing from...
Anika Therapeutics reported 2Q23 orthopedic sales of $42 million, +16% compared to the second quarter of 2022. The company generated $78.1 million in orthopedic sales for the first half of 2023, +12.7% compared to the prior year period.
Outsized growth in its orthobiologics business stemmed primarily from favorable order timing from J&J Mitek. However, the business showed underlying momentum for Monovisc, and Cingal continued its growth trend in more than 35 markets outside the U.S. Anika expects the next-generation OA pain market served by Cingal to represent a $1 billion opportunity.
The company’s Joint Preservation and Restoration category grew in the mid-single-digits on early growth from recent launches like X-Twist and RevoMotion. However, those products remain very early in the sales ramp, with RevoMotion not reaching full market release until September.
Still, Anika isn’t getting ahead of itself with respect to product launches and selling. Its hybrid salesforce is a key component of containing costs, but also revealed some weaknesses in the company’s distribution strategy.
“We try to be very thoughtful about our spend,” said Anika Therapeutics CEO Dr. Cheryl Blanchard. “That’s why we’ve gone with that hybrid salesforce so that we don’t have the full burden of the full fixed cost of a fully-owned sales force. I’ll tell you that the distributors that are really focused on us are growing and growing nicely. [But] many of our distributors were focused on the large growth opportunities there in the last quarter. And so, getting kind of anniversarying through the bolus of patients that are coming through the system post-COVID with large joint, I think, gets us to a better day and gets us refocused.”
The company adjusted its outlook for 2023 orthopedic sales. It now expects its Joint Preservation and Restoration business to finish slightly lower due to the slower sales ramp through the hybrid sales force. However, momentum in its OA Pain business will lead to higher-than-expected 2023 sales for those products. All told, Anika expects 2023 orthopedic sales between $150 million and $153 million, representing growth between 3.5% and 5.6% versus 2022.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated by ORTHOWORLD on an as-reported basis.
Orthopedic Sales by Segment
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $7.8 | $7.5 | $0.3 | 4.2% |
| Knees | $1.5 | $1.4 | $0.1 | 4.7% |
| Extremities | $6.4 | $6.1 | $0.3 | 4.2% |
| Sports Medicine | $4.8 | $4.6 | $0.2 | 5.4% |
| Orthobiologics | $29.3 | $24.1 | $5.2 | 21.8% |
| Total | $42.0 | $36.2 | $5.8 | 16% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $16.2 | $15.0 | $1.1 | 7.4% |
| Knees | $3.0 | $2.8 | $0.2 | 5.5% |
| Extremities | $13.2 | $12.2 | $1.0 | 7.8% |
| Sports Medicine | $10.0 | $9.2 | $0.8 | 8.4% |
| Orthobiologics | $52.0 | $45.1 | $6.9 | 15.3% |
| Total | $78.1 | $69.3 | $8.8 | 12.7% |
Orthopedic Sales by Geography
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $31.2 | $27.1 | $4.1 | 15% |
| OUS | $10.8 | $9.1 | $1.7 | 19.1% |
| EMEA | $5.4 | $4.8 | $0.6 | 11.4% |
| ROW | $5.5 | $4.3 | $1.2 | 27.9% |
| Total | $42.0 | $36.2 | $5.8 | 16% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $57.1 | $51.2 | $5.9 | 11.5% |
| OUS | $21.0 | $18.0 | $2.9 | 16.1% |
| EMEA | $10.8 | $10.1 | $0.7 | 7% |
| ROW | $10.2 | $8.0 | $2.2 | 27.6% |
| Total | $78.1 | $69.3 | $8.8 | 12.7% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $42.0 | |
| Cost of Sales | $14.8 | 35.2% |
| R & D | $21.3 | 50.6% |
| Selling and Admin | $7.0 | 16.6% |
| Other | $1.8 | 4.3% |
| Net Earnings | ($2.8) | (6.8%) |
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
