Anika Therapeutics Inc. (ANIK, Financial) filed Quarterly Report for the period ended 2010-03-31.
Anika Therapeutics Inc. has a market cap of $92.26 million; its shares were traded at around $6.86 with a P/E ratio of 15.95 and P/S ratio of 2.3. ANIK is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Sales of our post surgical products were $578,547 and $36,750 for the three months ended March 31, 2010 and 2009, respectively. The increase is primarily due to the addition of FAB s products. FAB s anti-adhesion product sales were $187,102 and $36,750 for the three months ended March 31, 2010, and 2009, respectively, and include INCERT, Hyalobarrier and Hyalobarrier Endo. FAB added $141,347 of sales to the first quarter s revenue. Our leading ear, nose and throat care product is Merogel. FAB is partnered with Medtronic for worldwide distribution (except for Italy) of its ENT products. Sales of ENT products were $391,445 for the three months ended March 31, 2010.
Licensing, milestone and contract revenue for the three months ended March 31, 2010 was $824,037, compared to $681,251 during the same period in 2009. The increase was due to a short term product development contract with an existing partner, as well as $115,079 of licensing revenue from our FAB subsidiary. Licensing and milestone revenue includes the ratable recognition of the $27,000,000 in up-front and milestone payments related to the U.S. distribution agreement with Depuy Mitek. These amounts are being recognized in income over the ten-year expected life of the agreement, or $2,700,000 per year.
We require cash to fund our operating expenses and capital expenditures. We expect that our requirement for cash to fund operations will increase as the scope of our operations expand. Prior to 2008, we funded our cash requirements from operations as well as from existing cash and investments on hand. In 2008, we borrowed $16 million under a line of credit with Bank of America to partially fund our Bedford, Massachusetts facility capital project. Cash and cash equivalents totaled $23,167,641 compared to $24,426,990, and working capital totaled $33,799,165 and $33,270,036 at March 31, 2010 and December 31, 2009, respectively.
Cash used in investing activities was $785,492 for the three months ended March 31, 2010, compared to $1,268,586 for the three months ended March 31, 2009. The decrease is due to decreased expenditures related to our Bedford, MA facility. We expect our capital expenditures in 2010 to decrease compared to 2009 as the new facility capital project winds down. The new facility capital project cost is approximately $34 million (including interior construction, equipment, furniture and fixtures). Construction commenced in May 2007 and validation of the facility is expected to be completed in late 2010. There can be no assurance that we will be successful in qualifying the new facility under FDA and European Union regulations.
Cash used in financing activities was $224,103 for the first three months in 2010, which was primarily due to our principal payments on the long-term debt in the amount of $400,000. This was partially offset by $175,897 in proceeds from employee stock option exercises. Cash used in financing activities was $400,000 for the first three months ended March 31, 2009 as a result of our first principal payment on our long-term debt.
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Anika Therapeutics Inc. has a market cap of $92.26 million; its shares were traded at around $6.86 with a P/E ratio of 15.95 and P/S ratio of 2.3. ANIK is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Historically our joint health products consist of ORTHOVISC, ORTHOVISC mini and MONOVISC, the latter two of which are currently only available outside the United States. Revenue from these joint health products increased 27% to $6,512,763, during the three months ended March 31, 2010 compared to the same period in 2009. The improvement in joint health product revenue was due to increases in domestic ORTHOVISC revenue, as well as increased sales of MONOVISC in Europe, Turkey and Canada in 2010. Our U.S. joint health product revenue for the three months ended March 31, 2010 totaled $5,292,990, compared to $3,663,203 during the same period in 2009, representing an increase of 44%. This increase reflects DePuy Mitek s underlying volume sales increases to end-users as a result of their continued marketing efforts. International joint health product revenue in 2010 decreased 18% to $1,219,773, from $1,486,439 during the same period in 2009. The decrease in international revenue was primarily due to order timing. We expect joint health product revenue to increase in 2010 compared to 2009, both domestically and internationally.Sales of our post surgical products were $578,547 and $36,750 for the three months ended March 31, 2010 and 2009, respectively. The increase is primarily due to the addition of FAB s products. FAB s anti-adhesion product sales were $187,102 and $36,750 for the three months ended March 31, 2010, and 2009, respectively, and include INCERT, Hyalobarrier and Hyalobarrier Endo. FAB added $141,347 of sales to the first quarter s revenue. Our leading ear, nose and throat care product is Merogel. FAB is partnered with Medtronic for worldwide distribution (except for Italy) of its ENT products. Sales of ENT products were $391,445 for the three months ended March 31, 2010.
Licensing, milestone and contract revenue for the three months ended March 31, 2010 was $824,037, compared to $681,251 during the same period in 2009. The increase was due to a short term product development contract with an existing partner, as well as $115,079 of licensing revenue from our FAB subsidiary. Licensing and milestone revenue includes the ratable recognition of the $27,000,000 in up-front and milestone payments related to the U.S. distribution agreement with Depuy Mitek. These amounts are being recognized in income over the ten-year expected life of the agreement, or $2,700,000 per year.
We require cash to fund our operating expenses and capital expenditures. We expect that our requirement for cash to fund operations will increase as the scope of our operations expand. Prior to 2008, we funded our cash requirements from operations as well as from existing cash and investments on hand. In 2008, we borrowed $16 million under a line of credit with Bank of America to partially fund our Bedford, Massachusetts facility capital project. Cash and cash equivalents totaled $23,167,641 compared to $24,426,990, and working capital totaled $33,799,165 and $33,270,036 at March 31, 2010 and December 31, 2009, respectively.
Cash used in investing activities was $785,492 for the three months ended March 31, 2010, compared to $1,268,586 for the three months ended March 31, 2009. The decrease is due to decreased expenditures related to our Bedford, MA facility. We expect our capital expenditures in 2010 to decrease compared to 2009 as the new facility capital project winds down. The new facility capital project cost is approximately $34 million (including interior construction, equipment, furniture and fixtures). Construction commenced in May 2007 and validation of the facility is expected to be completed in late 2010. There can be no assurance that we will be successful in qualifying the new facility under FDA and European Union regulations.
Cash used in financing activities was $224,103 for the first three months in 2010, which was primarily due to our principal payments on the long-term debt in the amount of $400,000. This was partially offset by $175,897 in proceeds from employee stock option exercises. Cash used in financing activities was $400,000 for the first three months ended March 31, 2009 as a result of our first principal payment on our long-term debt.
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