1-AUG-18 – Anika Therapeutics (ANIK:BUY) Anika Therapeutics Product revenues rise 8% YOY primarily as a result of higher sales of Monovisc. Operating expenses rise 23% due to new management team hires and expanded commercial initiatives. We maintain our Buy rating and $60 price target.


  • US Monvisc revenues grew 42% in Q2 while global Monovisc revenues improved 26%.
  • Reduced milestone payments caused overall revenues to decline 9% YOY. ANIK benefitted from milestone payments totaling $5.1 million in Q2:17 triggered by hitting Monovisc sales targets. ANIK now expects milestone payments for 2018 sales activity to roll into next year.
  • Despite Cingal (Monovisc + steroid) falling short of its 26-week primary endpoint in the 16.02 Phase III study, as was announced in June, ANIK believes the cumulative data gathered over multiple existing studies may support US approval. The Company plans to meet with FDA to determine a path forward for Cingal after analyzing the data from the 3-month extension study, which should be completed this summer.
  • Cingal (Monovisc + steroid) is already approved in markets outside the US and continues to gain traction in Europe and Canada.
  • ANIK is prepping for the 2019 US commercial launch of its injectable bone graft substitute product that was approved last December. This product addresses a $250-$300 million US market.
  • ANIK ended the quarter with $139 million of cash and investments on its balance sheet. The Company used some of its cash for a $30 million share repurchase completed during July and is also pursuing acquisitions. At present, ANIK is actively screening several product and/or technology takeover candidates.
  • Central to our investment thesis is US approval for Cingal, which we still believe is likely though may be delayed due to disappointing 16.02 trial results. We thus maintain our Buy rating and $60 price target.

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