Anika Therapeutics Reports First Quarter Results.Business Editors WOBURN, Mass.--(BUSINESS WIRE)--April 27, 2000 Anika Therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ANIK ANIK Canadian COMSAT ) today reported revenue for the first quarter ended March 31, 2000 of $2,721,000 compared with $3,336,000 for the first quarter of 1999. The company recorded a net loss for the quarter of $564,000, or $.06 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with a net loss of $3,169,000, or $.31 per diluted share, for the same period last year. As previously reported, results for the first quarter of 1999 included a charge of $3,625,000, or $.36 per diluted share, for the cumulative effect of a change in accounting principle relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc revenue recognition for non-refundable fees. Income before the cumulative effect of the accounting change in the first quarter of 1999 was $456,000, or $.05 per diluted share. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. J. Melville Engle, chairman, president and chief executive officer, revenue for the quarter was impacted by fewer ORTHOVISC(R) orders from Biomeks Pharmaceuticals, Anika's distributor in Turkey. "First quarter 2000 shipments were reduced because of higher year-end 1999 in-country stocking levels following the mid-1999 earthquake," Engle said. Research and development costs for the quarter increased to $1,314,000 compared with $708,000 for the same period last year, primarily due to costs associated with the completion of U.S. Phase III clinical trials Noun 1. phase III clinical trial - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the for ORTHOVISC. Selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. in the first quarter of 2000 increased $255,000 compared with the first quarter of 1999, primarily due to costs associated with year-end 1999 corporate matters. About Anika Therapeutics 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 cartilage (kär`təlĭj), flexible semiopaque connective tissue without blood vessels or nerve cells. It forms part of the skeletal system in humans and in other vertebrates, and is also known as gristle. 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(R), a 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 (not approved for sale in the U.S.), Anika markets HYVISC(R) in the U.S. for the treatment of equine equine Any member of the ungulate family Equidae, which includes the modern horses, zebras, and asses, all in the genus Equus, as well as more than 60 species known only from fossils. Equines descended from the dawn horse (see Eohippus). osteoarthritis through Boehringer Ingelheim Vetmedica, Inc. and manufactures AMVISC(R) and AMVISC(R) Plus, HA 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" products for ophthalmic ophthalmic /oph·thal·mic/ (of-thal´mik) ocular (1). oph·thal·mic adj. Of or relating to the eye; ocular. Ophthalmic Pertaining to the eye. surgery, for Bausch & Lomb Surgical. Therapies currently under development include INCERT(R), a family of HA products designed to prevent post-surgical adhesions Adhesions Definition Adhesions are fibrous bands of scar tissue that form between internal organs and tissues, joining them together abnormally. . Anika is also collaborating with Orquest, Inc. to manufacture OSSIGEL(R), 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, which is also under development. The statements made in this press release which are not statements of historical fact are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements involve known and unknown risks, uncertainties and other factors. The words "believe," "expect," "anticipate," "intend," "estimate," and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. The Company's actual results could differ materially from any anticipated future results, performance or achievements described in the forward-looking statements as a result of a number of factors, which include the demand for the Company's products, the clinical results of its research and development efforts and the timing of regulatory approvals. There can be no assurances that the clinical data from the ORTHOVISC trial will be released on a timely basis, or at all, or that such data will support the efficacy of ORTHOVISC. Furthermore, there can be no assurances that the Company will be able to obtain regulatory approvals or successfully market any of its therapies currently under development. Certain other factors that might cause the Company's actual results to differ materially from those in the forward-looking statements include those set forth under the headings "Business," "Risk Factors and Certain Factors Affecting Future Operating Results" and "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1999 and filed with the Securities and Exchange Commission.
Anika Therapeutics, Inc.
INCOME STATEMENTS (Unaudited)
Three months ended
March 31,
2000 1999
(As Restated)
Product revenue $2,620,833 $3,235,650
License revenue 100,000 100,000
Total revenue 2,720,833 3,335,650
Cost of sales 1,232,968 1,708,171
Gross profit 1,487,865 1,627,479
Operating expenses:
Research and development 1,313,738 707,857
Selling, general and administrative 999,462 743,972
Total operating expenses 2,313,200 1,451,829
Income (loss) from operations (825,335) 175,650
Interest income, net 261,248 302,150
Income (loss) before income taxes (564,087) 477,800
Income taxes -- 21,979
Income (loss) before cumulative
effect of change in account principle (564,087) 455,821
Cumulative effect of change
in accounting principle -- (3,625,000)
Net loss ($564,087) ($3,169,179)
Basic earnings (loss) per share :
Income (loss) before cumulative effect of
change in accounting principle ($0.06) $0.05
Cumulative effect of change in accounting
principle 0.00 (0.38)
Net income (loss) ($0.06) ($0.33)
Shares used for computing basic EPS 9,804,284 9,514,381
Diluted earnings (loss) per share :
Income (loss) before cumulative effect of
change in accounting principle ($0.06) $0.05
Cumulative effect of change in accounting
principle 0.00 (0.36)
Net income (loss) ($0.06) ($0.31)
Shares used for computing diluted EPS 9,804,284 10,077,488
Anika Therapeutics, Inc.
Balance Sheets as of, March 31, December 31,
2000 1999
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 8,946,312 $ 6,440,705
Short-term investments 5,159,546 8,184,870
Accounts receivable 1,811,927 2,106,452
Inventories 6,792,994 5,493,701
Prepaid expenses 475,183 721,206
Total current assets 23,185,962 22,946,934
Property and equipment 8,207,190 8,116,233
Less accumulated depreciation 4,802,221 4,587,692
Net property and equipment 3,404,969 3,528,541
Long-term investments 5,646,465 5,558,029
Notes receivable from officers 294,000 353,000
Long term deposits 124,600 124,600
Total Assets $ 32,655,996 $ 32,511,104
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 421,412 $ 629,080
Accrued expenses 1,755,079 1,552,661
Deferred revenue 2,433,240 1,792,505
Total current liabilities 4,609,731 3,974,246
Long-term deferred revenue 2,725,000 2,825,000
Stockholders' equity:
Undesignated preferred stock,
$.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 31,829,531 31,959,316
Deferred compensation (474,982) (615,001)
Treasury stock, (at cost) 166,913 and
200,863 shares, respectively (796,610) (959,870)
Accumulated deficit (5,336,593) (4,772,506)
Total stockholders' equity 25,321,265 25,711,858
Total Liabilities and
Stockholders' Equity $ 32,655,996 $ 32,511,104
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