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Anika Therapeutics, Inc. (Nasdaq: ANIK), a leader in products for tissue protection, healing, and repair, based on
hyaluronic acid (“HA”) technology, today reported financial results for the quarter and full year ended December 31, 2011.
Anika’s total revenue increased 25% to $18.4 million in the fourth quarter of 2011, from $14.7 million in the fourth quarter of 2010. For the full year 2011, total revenue grew 17% to $64.8 million, from $55.6 million a year earlier. The company’s revenue growth for both periods was primarily driven by strong domestic and international sales of its flagship product, Orthovisc
®. Growing international sales of Monovisc
® as well as shipments of orthopedic and surgical products from Anika S.r.l. also contributed to these increases.
Operating and Net Income
Income from operations for the fourth quarter of 2011 increased to $4.9 million, from $2.5 million in the same period in 2010. Net income rose to $2.9 million, or $0.21 per diluted share, from $1.4 million, or $0.10 per diluted share, in the fourth quarter of 2010. For the 12 months ended December 31, 2011, income from operations rose to $14.0 million, from $7.5 million a year earlier. This growth was driven by a combination of increased revenue, higher gross margin, lower R&D spending related to clinical studies, and cost savings initiatives implemented during the period. Anika’s net income for full-year 2011 grew 96% to $8.5 million, or $0.62 per diluted share, from $4.3 million, or $0.32 per diluted share, in 2010. Due to the improved performance of its Italian operations, the company’s effective tax rate for 2011 declined to 38.6% from 41.2% in the prior year.
Product Gross Margin
Product gross margin for the fourth quarter of 2011 improved by 700 basis points to 59.8%, from 52.8% in the fourth quarter last year. For the 12 months ended December 31, 2011, product gross margin increased to 56.8%, compared with 54.8% a year earlier. The improvement for both the quarter and year was driven by a more profitable product mix.