Anika Therapeutics Corrects and Replaces Previous Earnings Announcement, BW2993, MA-ANIKA.WOBURN, Mass.--(BUSINESS WIRE)--July 22, 1999-- Anika Therapeutics Reports Second Quarter Results Anika Therapeutics, Inc. (Nasdaq: ANIK ANIK Canadian COMSAT ) today reported net income for the second quarter ended June 30, 1999 of $407,000, or $.04 per diluted share, compared with $2,201,000, or $.20 per diluted share, for the same period last year. Revenues for the second quarter were $3,750,000 versus $4,596,000 for the corresponding quarter in 1998. Included in revenues for the second quarter of 1998 was a $1,500,000 licensing payment from Zimmer, Inc. for expanded marketing and distribution rights to ORTHOVISC(R), Anika's treatment for osteoarthritis osteoarthritis or osteoarthrosis or degenerative joint disease Most common joint disorder, afflicting over 80% of those who reach age 70. It does not involve excessive inflammation and may have no symptoms, especially at first. of the knee. Product revenue for the second quarter rose 21 percent to $3,750,000 from $3,096,000 for the second quarter of 1998. For the six-months ended June 30, 1999 net income was $752,000, or $.07 per diluted share, compared with $2,838,000, or $.26 per diluted share, for the same period in 1998. Year-to-date revenues were $6,975,000 versus $7,350,000 for the first half of last year. Product revenue for the first six months of 1999 rose 19 percent to $6,975,000 from the prior year level of $5,850,000. J. Melville Engle, chairman, president and chief executive officer, said the 21 percent increase in product revenue for the quarter was due to higher international sales of ORTHOVISC, which rose 76 percent from the previous year's quarter. "We saw a strong increase in ORTHOVISC sales for the quarter and are continuing to work closely with Zimmer on the rollout of ORTHOVISC in Europe," he said. Last month Anika announced it had further expanded its distribution agreement with Zimmer to encompass much of Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. , the Middle East and Africa. "Our primary focus for the quarter has been on expediting enrollment of patients into the ORTHOVISC clinical trial, which commenced in late April," Engle said, noting that the company expects to complete enrollment of its target 350 patients at 23 clinical sites by the end of August. The company incurred approximately $500,000 in ORTHOVISC clinical trial expenses during the second quarter of 1999. In other news concerning the company's product pipeline, Anika noted it has elected to suspend further development of HA oligosaccharides oligosaccharides (ol´igōsak´  rīdz),n. for the treatment of cancer. "Our senior team and scientific advisory board did a thorough evaluation of the program and we came to the conclusion that the projected development costs and time to market were too great to make strategic sense for Anika," Engle said. Anika Therapeutics, Inc. (www.anikatherapeutics.com) develops manufactures and commercializes therapeutic products and devices intended to promote the repair, protection and healing of bone, cartilage and soft tissue. These products are based on hyaluronic acid hyaluronic acid: see mucopolysaccharide. Hyaluronic acid A polysaccharide which is an integral part of the gel-like substance of animal connective tissue; it supposedly serves as a lubricant and shock absorbent in the joints. (HA), a naturally occurring, biocompatible biocompatible /bio·com·pat·i·ble/ (-kom-pat´i-b'l) being harmonious with life; not having toxic or injurious effects on biological function. polymer found throughout the body. In addition to ORTHOVISC (not for sale in U.S.), Anika currently markets HYVISC(R) in the U.S. for the treatment of equine osteoarthritis and manufactures AMVISC(R) and AMVISC PLUS(R), highly viscous HA products used as viscoelastic Adj. 1. viscoelastic - having viscous as well as elastic properties natural philosophy, physics - the science of matter and energy and their interactions; "his favorite subject was physics" supplements for ophthalmic surgery, for Bausch & Lomb Surgical. Therapies currently under development include INCERT(R), a family of HA products designed to prevent post-surgical adhesions. Anika is also collaborating with Orquest, Inc. to manufacture Ossigel(TM), an injectable in·ject·a·ble adj. Capable of being injected. Used of a drug. n. A drug or medicine that can be injected. formulation of basic fibroblast growth factor Basic fibroblast growth factor, also known as bFGF or FGF2, is a member of the fibroblast growth factor family. In normal tissue, basic fibroblast growth factor is present in basement membranes and in the subendothelial extracellular matrix of blood combined with HA designed to accelerate the healing of bone fractures. The statements made in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company's actual results could differ materially from those set forth in the forward-looking statements as a result of a number of factors. In particular, there can be no assurance that the expanded agreement with Zimmer will progress as planned, that the clinical trial can be completed in a timely manner or at all, or if completed, that the results of the trial will produce data supporting the efficacy of ORTHOVISC. Even if the Company is able to successfully complete the clinical trial and the results thereof support the efficacy of ORTHOVISC, there can be no assurance that the Company will receive FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. or other regulatory approval of ORTHOVISC, or that such approval will be obtained in a timely manner or without the need for additional clinical trials. In addition, there can be no assurance that any delay in receiving any such approval will not adversely effect the Company's competitive position. Certain other factors that might cause the Company's actual results to differ materially from those set forth in the forward-looking statements include those factors set forth under the heading "Risk Factors" in the Company's 10-K filed with Anika Therapeutics, Inc. INCOME STATEMENTS 98 1999 1998 Product revenue 0,385 Cost of sales 1,896,633 1,564,569 3,604,804 2,908,041 Gross profit 1,853, operations 121,603 1,938,638 Shares used for computing basic EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. 9,26 11,197,949 10,081,235 11,039,747 Anik0 12,007,503 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying 2,840,423 3,032,737 Inventories 4,018,018 3,522,019 Prepaid expenses 610,502 250,023 Total current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. 22,845,220 29,524,802 Property and equipment 7,157,431 6,376,405 Less accumulated depreciation accumulated depreciation The total amount of depreciation that has been recorded for an asset since its date of acquisition. For example, a computer with a 5-year estimated life that was purchased for $2,000 would have accumulated depreciation of $800 [( 4,160,340 3,809,723 Net property and equipment 2,997,091 2,566,682 Long-term investments 5,632,881 -- Notes receivable from officers 252,000 193,000 Long term deposits 108,500 108,500 Total Assets $ 31,835,692 $ 32,392,984 LIABILITIES AND STOCKHOLDERS' EQUITY Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. : Accounts payable $ 815,914 $ 891,493 Accrued expenses 1,418,954 1,356,586 Deferred revenue 200,000 200,000 Total current liabilities 2,434,868 2,448,079 Advance rent payment 22,707 50,215 Stockholders' equity: Undesignated preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , $.01 par value: authorized 1,250,000 shares; no shares issued and outstanding -- -- Common stock, $.01 par value: authorized 30,000,000 shares; issued 9,991,943 shares, respectively 99,919 99,919 Additional paid-in capital additional paid-in capital Stockholder contributions that are in excess of a stock's stated or par value. For example, if a firm issues stock with a par value of $1 per share but sells the stock to investors at $10 per share, the firm's financial statements 31,986,825 34,439,676 Deferred compensation (801,614) (1,074,699) Treasury stock, (at cost) 204,707 and 344,500 shares, respectively (978,247) (1,889,794) Accumulated deficit (928,766) (1,680,412) Total stockholders' equity 29,378,117 29,894,690 Total Liabilities and Stockholders' Equity $ 31,835,692 $ 32,392,984 |
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