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Anika Therapeutics reported 4Q23 orthopedic sales of $40.4 million, +9.7% compared to the fourth quarter of 2022. The company generated $156.8 million in orthopedic sales in 2023, growing 10.1% compared to the prior year.
Strong osteoarthritis pain management sales in the fourth quarter topped off a record year for that business, driven by the global growth of Monovisc and sustained double-digit growth of Cingal in international markets. Anika continues its work with FDA to obtain clarity on the requirements for non-clinical data.
Newer products like Integrity, X-Twist and RevoMotion drove growth within the company’s other segments. However, that growth was not enough to offset the slower-than-expected growth of more mature products in the category. As a result, Anika recorded a $62.2 million impairment charge on intangible assets from the acquisitions of Parcus Medical and Arthrosurface.
With a lowered outlook for its Joint Preservation and Restoration business, the company will reduce spending across both R&D and SG&A line items, including a 9% reduction in headcount at the end of the first quarter of 2024. Outside of severance charges, the changes will result in approximately $10 million in savings on an annualized basis.
Going forward, Anika will prioritize investing in the greatest growth opportunities while selectively deploying HA-based technologies to set its foundation for the future.
“Beginning in mid-2023, we undertook a strategic review of the business with the support of Piper Sandler,” said Anika Therapeutics CEO Cheryl Blanchard. “As part of this review, we evaluated a wide range of options for the company, to increase shareholder value, including a potential sale. We remain open to all value-enhancing opportunities and regularly review what makes the most sense for our business. We have a lot of conviction in our newly focused strategy, leveraging our core strengths and highest value opportunities, as we accelerate our pivot to profitability and we are making this pivot from a position of strength, with a healthy balance sheet, positive cash flow generation, and a solid cash position with no debt.”
Anika expects 2024 orthopedic sales between $160 million and $164.5 million, representing growth between 2% and 4.9%.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic segment sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| 4Q23 | 4Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $9.3 | $8.8 | $0.6 | 6.6% |
| Knees | $1.8 | $1.7 | $0.0 | 2.2% |
| Extremities | $7.6 | $7.0 | $0.5 | 7.7% |
| Sports Medicine | $6.0 | $5.6 | $0.4 | 6.6% |
| Orthobiologics | $25.1 | $22.5 | $2.6 | 11.7% |
| Total | $40.4 | $36.8 | $3.6 | 9.7% |
| FY23 | FY22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $33.7 | $30.9 | $2.8 | 9.1% |
| Knees | $6.3 | $6.0 | $0.3 | 5.8% |
| Extremities | $27.4 | $24.9 | $2.5 | 9.9% |
| Sports Medicine | $21.2 | $19.5 | $1.7 | 8.5% |
| Orthobiologics | $101.9 | $92.0 | $9.9 | 10.8% |
| Total | $156.8 | $142.4 | $14.4 | 10.1% |
Orthopedic Sales by Geography
| 4Q23 | 4Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $29.7 | $27.6 | $2.1 | 7.5% |
| OUS | $10.7 | $9.2 | $1.5 | 16.3% |
| EMEA | $5.5 | $5.1 | $0.4 | 8.1% |
| Rest of World | $5.2 | $4.1 | $1.1 | 26.3% |
| Total | $40.4 | $36.8 | $3.6 | 9.7% |
| FY23 | FY22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $115.3 | $106.9 | $8.4 | 7.9% |
| OUS | $41.5 | $35.5 | $6.0 | 16.8% |
| EMEA | $21.3 | $19.5 | $1.7 | 8.9% |
| Rest of World | $20.2 | $16.0 | $4.2 | 26.6% |
| Total | $156.8 | $142.4 | $14.4 | 10.1% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $43.0 | |
| Cost of Sales | $16.6 | 38.7% |
| R & D | $20.3 | 47.3% |
| Selling and Admin | $7.6 | 17.7% |
| Other | $61.4 | 142.9% |
| Net Loss | ($63.0) | (146.6%) |
Anika Therapeutics reported 4Q23 orthopedic sales of $40.4 million, +9.7% compared to the fourth quarter of 2022. The company generated $156.8 million in orthopedic sales in 2023, growing 10.1% compared to the prior year.
Strong osteoarthritis pain management sales in the fourth quarter topped off a record year for that business, driven by...
Anika Therapeutics reported 4Q23 orthopedic sales of $40.4 million, +9.7% compared to the fourth quarter of 2022. The company generated $156.8 million in orthopedic sales in 2023, growing 10.1% compared to the prior year.
Strong osteoarthritis pain management sales in the fourth quarter topped off a record year for that business, driven by the global growth of Monovisc and sustained double-digit growth of Cingal in international markets. Anika continues its work with FDA to obtain clarity on the requirements for non-clinical data.
Newer products like Integrity, X-Twist and RevoMotion drove growth within the company’s other segments. However, that growth was not enough to offset the slower-than-expected growth of more mature products in the category. As a result, Anika recorded a $62.2 million impairment charge on intangible assets from the acquisitions of Parcus Medical and Arthrosurface.
With a lowered outlook for its Joint Preservation and Restoration business, the company will reduce spending across both R&D and SG&A line items, including a 9% reduction in headcount at the end of the first quarter of 2024. Outside of severance charges, the changes will result in approximately $10 million in savings on an annualized basis.
Going forward, Anika will prioritize investing in the greatest growth opportunities while selectively deploying HA-based technologies to set its foundation for the future.
“Beginning in mid-2023, we undertook a strategic review of the business with the support of Piper Sandler,” said Anika Therapeutics CEO Cheryl Blanchard. “As part of this review, we evaluated a wide range of options for the company, to increase shareholder value, including a potential sale. We remain open to all value-enhancing opportunities and regularly review what makes the most sense for our business. We have a lot of conviction in our newly focused strategy, leveraging our core strengths and highest value opportunities, as we accelerate our pivot to profitability and we are making this pivot from a position of strength, with a healthy balance sheet, positive cash flow generation, and a solid cash position with no debt.”
Anika expects 2024 orthopedic sales between $160 million and $164.5 million, representing growth between 2% and 4.9%.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic segment sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| 4Q23 | 4Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $9.3 | $8.8 | $0.6 | 6.6% |
| Knees | $1.8 | $1.7 | $0.0 | 2.2% |
| Extremities | $7.6 | $7.0 | $0.5 | 7.7% |
| Sports Medicine | $6.0 | $5.6 | $0.4 | 6.6% |
| Orthobiologics | $25.1 | $22.5 | $2.6 | 11.7% |
| Total | $40.4 | $36.8 | $3.6 | 9.7% |
| FY23 | FY22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $33.7 | $30.9 | $2.8 | 9.1% |
| Knees | $6.3 | $6.0 | $0.3 | 5.8% |
| Extremities | $27.4 | $24.9 | $2.5 | 9.9% |
| Sports Medicine | $21.2 | $19.5 | $1.7 | 8.5% |
| Orthobiologics | $101.9 | $92.0 | $9.9 | 10.8% |
| Total | $156.8 | $142.4 | $14.4 | 10.1% |
Orthopedic Sales by Geography
| 4Q23 | 4Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $29.7 | $27.6 | $2.1 | 7.5% |
| OUS | $10.7 | $9.2 | $1.5 | 16.3% |
| EMEA | $5.5 | $5.1 | $0.4 | 8.1% |
| Rest of World | $5.2 | $4.1 | $1.1 | 26.3% |
| Total | $40.4 | $36.8 | $3.6 | 9.7% |
| FY23 | FY22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $115.3 | $106.9 | $8.4 | 7.9% |
| OUS | $41.5 | $35.5 | $6.0 | 16.8% |
| EMEA | $21.3 | $19.5 | $1.7 | 8.9% |
| Rest of World | $20.2 | $16.0 | $4.2 | 26.6% |
| Total | $156.8 | $142.4 | $14.4 | 10.1% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $43.0 | |
| Cost of Sales | $16.6 | 38.7% |
| R & D | $20.3 | 47.3% |
| Selling and Admin | $7.6 | 17.7% |
| Other | $61.4 | 142.9% |
| Net Loss | ($63.0) | (146.6%) |
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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.
