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Anika Therapeutics reported 1Q20 orthopedic revenue of USD $33.4 million, +45% vs. 1Q19. Continuing purchase orders for MONOVISC and ORTHOVISC offset the near-term impact of procedure deferrals that hampered sales for Parcus and Arthrosurface products. The two recently acquired companies accounted for $6.8 million in revenue for 1Q. Due to COVID’s impact on the company’s ability to accurately forecast results, Anika has withdrawn its 2020 guidance.
Beyond procedure deferrals, the pandemic has also impacted Anika’s clinical trial timelines. The company no longer expects to begin its CINGAL pilot study in 1H this year and enrollment in the HYALOFAST Phase III trial was paused in April. As a result, Anika no longer anticipates completing enrollment by year-end. Additionally, submission of a 510(k) application to the FDA for the company’s rotator repair therapy will be delayed from its initial early 2021 timeline.
Anika exited the first quarter with $92 million in cash and then drew down $50 million on its existing credit facility to strengthen liquidity. The company has implemented short-term expense controls to conserve cash flow and prioritize strategy business initiatives critical to future growth.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Sports Medicine | $7.9 | $0.2 | $7.7 | 4744.2% |
| Orthobiologics | $25.5 | $22.9 | $2.6 | 11.5% |
| Total | $33.4 | $23.0 | $10.4 | 45% |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $26.3 | $20.1 | $6.2 | 30.9% |
| OUS | $9.1 | $4.6 | $4.5 | 96.4% |
| Europe | $5.3 | $2.5 | $2.8 | 108.9% |
| Other | $3.8 | $2.1 | $1.7 | 81.5% |
| Grand Total | $35.4 | $24.7 | $10.7 | 43.2% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $35.4 | |
| Cost of Sales | $14.2 | 40.1% |
| R & D | $6.1 | 17.1% |
| Selling and Admin | $14.4 | 40.8% |
| Other | ($2.7) | 7.8% |
| Net Earnings | $3.5 | 9.8% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Anika Therapeutics reported 1Q20 orthopedic revenue of USD $33.4 million, +45% vs. 1Q19. Continuing purchase orders for MONOVISC and ORTHOVISC offset the near-term impact of procedure deferrals that hampered sales for Parcus and Arthrosurface products. The two recently acquired companies accounted for $6.8 million in revenue for 1Q. Due to...
Anika Therapeutics reported 1Q20 orthopedic revenue of USD $33.4 million, +45% vs. 1Q19. Continuing purchase orders for MONOVISC and ORTHOVISC offset the near-term impact of procedure deferrals that hampered sales for Parcus and Arthrosurface products. The two recently acquired companies accounted for $6.8 million in revenue for 1Q. Due to COVID’s impact on the company’s ability to accurately forecast results, Anika has withdrawn its 2020 guidance.
Beyond procedure deferrals, the pandemic has also impacted Anika’s clinical trial timelines. The company no longer expects to begin its CINGAL pilot study in 1H this year and enrollment in the HYALOFAST Phase III trial was paused in April. As a result, Anika no longer anticipates completing enrollment by year-end. Additionally, submission of a 510(k) application to the FDA for the company’s rotator repair therapy will be delayed from its initial early 2021 timeline.
Anika exited the first quarter with $92 million in cash and then drew down $50 million on its existing credit facility to strengthen liquidity. The company has implemented short-term expense controls to conserve cash flow and prioritize strategy business initiatives critical to future growth.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Sports Medicine | $7.9 | $0.2 | $7.7 | 4744.2% |
| Orthobiologics | $25.5 | $22.9 | $2.6 | 11.5% |
| Total | $33.4 | $23.0 | $10.4 | 45% |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $26.3 | $20.1 | $6.2 | 30.9% |
| OUS | $9.1 | $4.6 | $4.5 | 96.4% |
| Europe | $5.3 | $2.5 | $2.8 | 108.9% |
| Other | $3.8 | $2.1 | $1.7 | 81.5% |
| Grand Total | $35.4 | $24.7 | $10.7 | 43.2% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $35.4 | |
| Cost of Sales | $14.2 | 40.1% |
| R & D | $6.1 | 17.1% |
| Selling and Admin | $14.4 | 40.8% |
| Other | ($2.7) | 7.8% |
| Net Earnings | $3.5 | 9.8% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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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.
