In This Article:
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Anika Therapeutics Inc (NASDAQ:ANIK) reported strong growth in its commercial channel, with revenue up 18% year over year.
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The company achieved 33% growth in its regenerative solutions portfolio, driven by the success of the Integrity implant system.
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Anika Therapeutics Inc (NASDAQ:ANIK) has made significant progress in its strategic initiatives, focusing on its proprietary hyaluronic acid technologies.
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Cost-saving measures have been effective, with operating expenses down 12% year over year.
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The company is on track for the anticipated US approvals of Halofast and Singal, which are expected to be market-driving forces in their respective fields.
Negative Points
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Overall revenue for the first quarter was down 10% compared to the same period in 2024, primarily due to pricing pressure in the OEM channel.
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The OEM channel revenue decreased by 23% due to lower pricing for Monovik and Orthovisk in the US.
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Gross margin declined to 56%, down 9 percentage points from the previous year, impacted by lower sales and higher manufacturing costs.
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The company faced ongoing pricing challenges in the domestic OA pain market.
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Manufacturing challenges led to lower yields and increased scrap, affecting the production of Monovik and Singal.
Q & A Highlights
Q: Could you elaborate on the timeline and investment needed for the Singal bioequivalent study? When should we expect the NDA filing? A: We expect to begin the study by the end of the year. We are still working through some process activities, so we won't provide additional timeline updates until we progress further. The study is the last task needed before the NDA filing. As for investment, about half a point worth of expenses for the study is included in our 2025 guidance. - Dr. Cheryl Blanchard, President and CEO, and Steve Griffin, CFO.
Q: What is driving the expected improvement in OEM revenue through the year? A: The sequential growth from Q2 versus Q1 is primarily driven by price. We saw more significant declines in end-user pricing in Q1 than anticipated, but we have early indications of a pricing rebound in Q2. However, for the full year, pricing is down more than initially anticipated. - Steve Griffin, CFO.
Q: Why did you maintain the commercial revenue guidance despite integrity exceeding expectations? A: We are excited about the overachievement on the integrity side. The OUS business is on task, and we had a strong Q1, but we face a tougher comparison in Q2. We are maintaining guidance and are excited to continue driving overachievement on the commercial side. - Dr. Cheryl Blanchard, President and CEO.