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Anika Therapeutics, Inc. (ANIK)
:ANIK
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Anika Therapeutics
(NASDAQ:ANIK)
51Neutral
Positive Factors
Investment Rating
Anika is maintaining an OUTPERFORM investment rating despite challenges.
Product Development
Potential needle-mover products Cingal and Hyalofast have completed pivotal trials.
Negative Factors
Financial Performance
Management materially reduced its previous adjusted EBITDA guidance due to weakening OA pain volumes and softer pricing.
Anika Therapeutics (ANIK) vs. S&P 500 (SPY)
Market Cap
$245.90M
Dividend YieldN/A
Average Volume (3M)69.34K
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth0.52%
EPS Growth-295.83%
CountryUS
Employees357
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-6.64
Shares Outstanding14,645,596
10 Day Avg. Volume83,246
30 Day Avg. Volume69,341
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.47
Price to Cash Flow (P/CF)12.00
P/FCF Ratio18.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.00Price Target Upside66.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Anika Therapeutics Business Overview & Revenue Model
Company DescriptionAnika Therapeutics, Inc. is a global, integrated joint preservation and regenerative therapies company focused on developing and commercializing innovative medical solutions that restore mobility and relieve pain for patients with degenerative orthopedic diseases and traumatic conditions. Operating primarily in the biotechnology and medical devices sectors, Anika offers a diverse portfolio of products including hyaluronic acid-based viscosupplements, joint preservation and restoration solutions, and regenerative therapies.
How the Company Makes MoneyAnika Therapeutics generates revenue primarily through the sale of its medical products to healthcare providers, distributors, and strategic partners. Key revenue streams include its viscosupplementation products, which are used to treat osteoarthritis pain, as well as its joint preservation and restoration solutions, which encompass a range of surgical implants and regenerative therapies. The company leverages its expertise in hyaluronic acid technology to maintain a competitive edge in the market, and it often forms strategic partnerships with other companies to enhance its product offerings and expand its distribution network. Anika's earnings are also influenced by its research and development efforts, which aim to introduce new and innovative products that meet the evolving needs of the orthopedic market.
Anika Therapeutics Financial Statement Overview
Summary
Anika Therapeutics faces financial challenges with declining revenues and profitability pressures, indicated by a negative net profit margin and lower gross profit margin. However, the company maintains a strong balance sheet with low debt levels. Cash flow generation needs improvement to support strategic initiatives.Income Statement
Anika Therapeutics has experienced declining revenue over the TTM period compared to the previous year. The gross profit margin has decreased from 61.88% in 2023 to 48.58% TTM, indicating pressure on profitability. Net profit margin is negative due to losses, and the company is facing significant challenges in achieving positive earnings as reflected by negative EBIT and EBITDA margins.45
Neutral
Balance Sheet
Despite a decrease in total assets and stockholders' equity, Anika Therapeutics maintains a relatively low debt-to-equity ratio of 0.15 TTM, indicating prudent leverage management. The equity ratio stands at 77.71% TTM, showing strong equity backing. However, return on equity is negative due to net losses.70
Positive
Cash Flow
The company has shown some improvement in operating cash flow TTM, but free cash flow remains negative. The operating cash flow to net income ratio has improved, yet the free cash flow to net income ratio is not favorable. The company needs to enhance cash flow generation to support operational and strategic investments.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 164.17M | 166.66M | 156.24M | 147.79M | 130.46M | 114.61M | Gross Profit |
| 79.76M | 103.09M | 93.58M | 82.94M | 69.03M | 85.86M | EBIT |
| -34.51M | -87.64M | -19.40M | -18.48M | -14.47M | 34.25M | EBITDA |
| -23.09M | -11.23M | -4.91M | 2.62M | -12.83M | 34.25M | Net Income Common Stockholders |
| -97.52M | -82.67M | -14.86M | 4.13M | -23.98M | 27.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 159.01M | 72.87M | 86.33M | 94.39M | 98.32M | 184.94M | Total Assets |
| 278.99M | 270.63M | 349.13M | 347.54M | 365.61M | 330.71M | Total Debt |
| 0.00 | 29.04M | 30.89M | 19.24M | 20.88M | 21.37M | Net Debt |
| -89.04M | -43.83M | -55.44M | -75.15M | -74.94M | -136.10M | Total Liabilities |
| 15.38M | 58.37M | 63.56M | 60.45M | 93.20M | 42.33M | Stockholders Equity |
| 263.61M | 212.26M | 285.56M | 287.08M | 272.40M | 288.38M |
| Cash Flow | Free Cash Flow | ||||
| -808.00K | -7.21M | -3.08M | 3.25M | 11.44M | 34.18M | Operating Cash Flow |
| 7.46M | -1.79M | 4.41M | 8.40M | 13.06M | 37.01M | Investing Cash Flow |
| -8.87M | -5.43M | -7.49M | -3.12M | -71.26M | 39.69M | Financing Cash Flow |
| -7.03M | -6.32M | -4.85M | -6.78M | -3.77M | -8.14M |
Anika Therapeutics Technical Analysis
Negative
16.79
Price Trends
16.90
Negative
17.91
Negative
21.85
Negative
Market Momentum
-0.12
Positive
42.30
Neutral
14.80
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANIK, the sentiment is Negative. The current price of 16.79 is below the 20-day moving average (MA) of 17.37, below the 50-day MA of 16.90, and below the 200-day MA of 21.85, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 42.30 is Neutral, neither overbought nor oversold. The STOCH value of 14.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ANIK.
Anika Therapeutics Risk Analysis
Anika Therapeutics disclosed 41 risk factors in its most recent earnings report. Anika Therapeutics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Anika Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.39B | 26.55 | 14.06% | ― | 8.14% | 2.55% | |
58 Neutral | $710.91M | ― | -24.20% | ― | 10.40% | 78.94% | |
52 Neutral | $184.07M | ― | -9.15% | ― | 1.26% | 70.30% | |
51 Neutral | $245.90M | ― | -43.31% | ― | 0.52% | -295.83% | |
49 Neutral | $407.97M | ― | 87.26% | ― | ― | -817.72% | |
49 Neutral | $653.24M | ― | -22.87% | ― | 7.08% | 20.45% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
ANIK
Anika Therapeutics
16.79
-9.00
-34.90%
ARAY
Accuray
1.82
-0.90
-33.09%
HAE
Haemonetics
68.30
-8.57
-11.15%
OMER
Omeros
7.39
3.36
83.37%
OFIX
Orthofix
17.10
3.05
21.71%
BVS
Bioventus
10.80
5.20
92.86%
Anika Therapeutics Earnings Call Summary
Earnings Call Date: Oct 31, 2024 | % Change Since: -31.97% | Next Earnings Date: Mar 12, 2025
Earnings Call Sentiment Neutral
The call highlighted strategic shifts focusing on HA-based products and international growth. However, significant challenges included the divestiture of underperforming assets and declining U.S. revenue. Despite these setbacks, growth in international markets and regulatory progress for key products provide a positive outlook.Highlights
Strategic Shift and Focus
Anika is focusing on differentiated HA-based products targeting a $4 billion market for OA pain management and Regenerative Solutions.
Integrity Product Growth
Integrity surgeries increased by over 40% sequentially in Q3 2024, with more than 500 surgeries since its late 2023 launch.
International OA Pain Sales Growth
International OA pain sales grew by 7% in Q3 2024 and 14% year-to-date, driven by geographic expansion.
Hyalofast Progress
The first module of the PMA for Hyalofast was filed with the FDA, targeting a U.S. launch by 2026 in a $1 billion market.
Cingal Regulatory Progress
Acquired the Aristospan NDA, clearing a major FDA hurdle, and began additional nonclinical testing for Cingal.
Projected Commercial Channel Growth
Commercial channel revenue is expected to grow 14% to 19% for 2024, with double-digit growth projected through 2027.
Lowlights
Arthrosurface Sale
Arthrosurface was sold for $10 million after an impairment of around $27 million, indicating unmet acquisition expectations.
Parcus Medical Planned Divestiture
Anika plans to divest Parcus Medical, reflecting strategic realignment after acquisition expectations fell short.
U.S. OA Pain Management Decline
U.S. OA Pain Management revenue declined by 2% due to competitive pressures and pricing issues.
Third Quarter Revenue Decline
Total revenue decreased by $2.7 million compared to the same period in 2023, driven by lower U.S. sales and product line softness.
Net Loss in Q3 2024
Reported a net loss of $29.9 million in Q3 2024, compared to a net loss of $6.6 million in the prior year.
Company Guidance
In the third-quarter earnings call for Anika on October 31, 2024, the company provided a comprehensive update on its strategic direction and financial guidance. Anika announced a significant strategic pivot, focusing on its HA-based products, including Integrity, Hyalofast, and Cingal, which are projected to drive commercial channel growth. The restructuring involves selling Arthrosurface and planning to divest Parcus Medical, reducing global headcount from approximately 325 to 225, and reclassifying revenue into commercial and OEM channels for better shareholder visibility. For 2024, Anika anticipates 14% to 19% growth in the commercial channel, while the OEM channel is expected to decline by 8% to 10%. Looking ahead, Anika targets double-digit revenue growth in the commercial channel, predicting a 12% to 18% increase in 2025 and 20% to 30% annually in 2026 and 2027. Adjusted EBITDA for 2024 is guided between $16 million and $18 million, with projected low double-digit EBITDA margins for 2025. The call underscored Anika's commitment to aligning its resources and investments towards its high-growth potential HA-driven products and markets.Anika Therapeutics Corporate Events
M&A TransactionsBusiness Operations and Strategy
Anika Therapeutics Refocuses on Core Technology and Growth
Positive
Oct 31, 2024
Anika Therapeutics has strategically shifted its focus by divesting Arthrosurface and planning to sell Parcus Medical, aiming to concentrate on its core hyaluronic acid technology and expanding Regenerative Solutions portfolio. The sale of Arthrosurface to Phoenix Brio was completed for $10 million, including a promissory note and potential sales-based consideration. Anika’s efforts are part of a broader strategy to streamline operations and enhance growth in the orthopedic market, estimated at $4 billion globally.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.