Anika Therapeutics and Zimmer Sign ORTHOVISC Marketing Agreement Worth Up to $23 Million.

WOBURN, Mass.--(BW HealthWire)--Nov. 10, 1997--

Zimmer to represent innovative osteoarthritis treatment

in North America

ANIKA THERAPEUTICS, INC. (NASDAQ:ANIK) today announced that it has signed an exclusive multi-year marketing and distribution agreement with Zimmer, Inc., a billion-dollar subsidiary of Bristol-Myers Squibb (NYSE:BMY). Zimmer will represent Anika's innovative ORTHOVISC product (sodium hyaluronate for injection) for the treatment of osteoarthritis of the knee in the United States, Canada and select Asia-Pacific markets. The deal is potentially worth up to $23 million.

Zimmer paid Anika $2.5 million at signing and is obligated to pay up to an additional $20.5 million contingent upon the attainment of certain regulatory and sales milestones. According to the terms of the agreement, the two companies will share in the revenues generated by Zimmer's sales and marketing efforts and Anika will exclusively manufacture ORTHOVISC for Zimmer.

ORTHOVISC is used to treat osteoarthritis using a therapy called viscosupplementation. The natural knee is surrounded by synovial fluid, which contains hyaluronic acid (HA), which helps coat and lubricate the joint. ORTHOVISC is designed to emulate the viscoelastic and cushioning properties of natural HA.

"With the largest dedicated sales force addressing orthopaedic surgeons and related specialties, we believe Zimmer will provide powerful commercialization and distribution efforts to make ORTHOVISC the valued therapeutic option and preferred brand in the treatment of osteoarthritis," said J. Melville Engle, president and chief executive officer of Anika. "Zimmer is the established world leader in knee replacement products and has a strong reputation with orthopaedic surgeons and musculoskeletal specialists around the globe."

ORTHOVISC has been cleared for marketing in Canada, where Zimmer will have distribution rights. Registrations for marketing approval have also been filed in Australia and New Zealand. Anika recently completed a pivotal clinical study and plans to file by the end of this year with the U.S. Food and Drug Administration for clearance to market the product in the United States.

"Zimmer is excited about the offering musculoskeletal specialists another treatment option to address knee pain associated with osteoarthritis," said J. Raymond Elliott, Zimmer president. "ORTHOVISC gives physicians an alternative to pharmaceutical therapies as they manage the course of the patient's disease. Zimmer is uniquely equipped to represent ORTHOVISC among musculoskeletal specialists. We are pleased to be associated with a company of Anika's high caliber."

Zimmer is the world leader in design, manufacture and distribution of orthopaedic implants and related equipment and supplies. The company provides a broad range of joint replacement, fracture management and patient care products. Founded in 1927, Zimmer became a member of the Bristol-Myers Squibb family of companies in 1972.

Anika Therapeutics Inc. develops, manufactures and commercializes therapeutic products and devices intended to promote the protection and healing of bone, cartilage and soft tissue. These products are based on hyaluronic acid (HA), a naturally-occurring, biocompatible polymer found throughout the body. -0-

Visit Zimmer on the Internet at http://www.zimmer.com Visit Bristol-Myers Squibb on the Internet at http://www.bms.com

This press release includes 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 including statements relating to amounts which may be received under the company's agreement with Zimmer. The company's actual results could differ materially from those set forth in the forward-looking statements. Certain factors that might cause such a difference include (i) the ability of the company to obtain FDA approval for marketing of ORTHOVISC in the U.S., (ii) the ability of the company and Zimmer to achieve the regulatory and sales milestones set forth in the agreement, (iii) the overall market acceptance of HA products for the treatment of osteoarthritis, as well as those factors set forth as Risk Factors in the company's 10-QSB filed with the Securities and Exchange Commission on Aug. 13, 1997.

CONTACT: Anika Therapeutics Inc.

Sean Moran, 617/932-6616 x 102

or

Pondel Parsons & Wilkinson

Susan Klein, 508/358-4315

Robert Whetstone, 310/207-9300

or

Zimmer

Brad Bishop, 219/372-4291