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Anika Therapeutics (ANIK)
NASDAQ:ANIK
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Anika Therapeutics
(NASDAQ:ANIK)
49Neutral
Positive Factors
Financial Health
The company ended the quarter with $55.6 million in cash and equivalents and no debt.
Product Development
The upcoming U.S. commercial launches of Cingal and Hyalofast could have a significant financial impact.
Revenue Performance
Anika generated $30.6 million in revenue, exceeding both the company's estimate and the consensus estimate.
Negative Factors
Earnings Performance
Adjusted EPS of -$0.25 fell massively short of expectations.
Pricing and Volume Challenges
The company is facing volume and pricing headwinds in the U.S. for its OA pain management products.
Regulatory Delays
Cingal has been stalled from a regulatory perspective due to slow-moving conversations with the FDA.
Anika Therapeutics (ANIK) vs. S&P 500 (SPY)
Market Cap
$193.36M
Dividend YieldN/A
Average Volume (3M)87.43K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth-8.92%
EPS Growth31.98%
CountryUS
Employees288
SectorHealthcare
Sector Strength69
IndustryMedical - Devices
Share Statistics
EPS (TTM)-3.84
Shares Outstanding14,175,994
10 Day Avg. Volume80,035
30 Day Avg. Volume87,430
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.33
Price to Cash Flow (P/CF)10.90
P/FCF Ratio17.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.00Price Target Upside75.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Anika Therapeutics Business Overview & Revenue Model
Company DescriptionAnika Therapeutics, Inc. is a global medical technology company that specializes in developing and commercializing products for tissue protection, healing, and repair. The company operates primarily in the healthcare sector, with a focus on orthopedics and regenerative medicine. Its core products include joint pain management therapies, orthopedic joint implants, and regenerative solutions designed to improve the lives of patients with degenerative joint diseases and injuries.
How the Company Makes MoneyAnika Therapeutics generates revenue through the sale of its medical products and therapies. The company primarily earns money by commercializing its proprietary hyaluronic acid-based therapies for joint pain management, which are used to treat conditions such as osteoarthritis. Additionally, Anika offers a range of orthopedic joint implants and regenerative solutions that are sold to healthcare providers and distributors. Key revenue streams include product sales in domestic and international markets, with significant partnerships with medical institutions and distributors supporting its market reach. The company's earnings are influenced by factors such as product innovation, regulatory approvals, and the adoption of its therapies and implants by healthcare practitioners.
Anika Therapeutics Financial Statement Overview
Summary
Anika Therapeutics faces significant financial challenges with declining revenues and profitability issues. The balance sheet shows moderate leverage but signals potential financial stress due to declining equity and assets. Volatile cash flows and negative free cash flow highlight operational inefficiencies.Income Statement
Anika Therapeutics has faced challenges in maintaining revenue growth, with revenues declining significantly from 2023 to 2024. The company exhibits negative net profit margins and EBIT margins, indicating operational inefficiencies. The gross profit margin has decreased compared to earlier years, reflecting potential issues in cost management or pricing power.45
Neutral
Balance Sheet
The company's balance sheet reflects a moderate debt-to-equity ratio, suggesting manageable leverage. However, the declining stockholders' equity and total assets over recent years indicate potential financial stress. Anika maintains a positive equity ratio, though it has been decreasing, which could point to reduced asset backing for shareholders.60
Neutral
Cash Flow
Anika Therapeutics shows a volatile cash flow situation with fluctuating operating and free cash flows. The operating cash flow to net income ratio indicates some efficiency in cash generation relative to reported losses. However, free cash flow remains negative, highlighting challenges in generating surplus cash after capital expenditures.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 119.91M | 166.66M | 156.24M | 147.79M | 130.46M | Gross Profit |
| 76.00M | 103.09M | 93.58M | 82.94M | 69.03M | EBIT |
| -5.10M | -87.64M | -19.40M | -18.48M | -14.47M | EBITDA |
| -5.10M | -11.23M | -4.91M | 2.62M | -12.83M | Net Income Common Stockholders |
| -56.38M | -82.67M | -14.86M | 4.13M | -23.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 55.63M | 72.87M | 86.33M | 94.39M | 98.32M | Total Assets |
| 202.74M | 270.63M | 349.13M | 347.54M | 365.61M | Total Debt |
| 25.93M | 29.04M | 30.89M | 19.24M | 20.88M | Net Debt |
| -29.70M | -43.83M | -55.44M | -75.15M | -74.94M | Total Liabilities |
| 48.75M | 58.37M | 63.56M | 60.45M | 93.20M | Stockholders Equity |
| 153.99M | 212.26M | 285.56M | 287.08M | 272.40M |
| Cash Flow | Free Cash Flow | |||
| -2.33M | -7.21M | -3.08M | 3.25M | 11.44M | Operating Cash Flow |
| 5.40M | -1.79M | 4.41M | 8.40M | 13.06M | Investing Cash Flow |
| -8.33M | -5.43M | -7.49M | -3.12M | -71.26M | Financing Cash Flow |
| -12.73M | -6.32M | -4.85M | -6.78M | -3.77M |
Anika Therapeutics Technical Analysis
Negative
13.64
Price Trends
16.34
Negative
16.54
Negative
20.62
Negative
Market Momentum
-0.77
Positive
32.36
Neutral
32.83
Neutral
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 13.64 is below the 20-day moving average (MA) of 14.89, below the 50-day MA of 16.34, and below the 200-day MA of 20.62, indicating a bearish trend. The MACD of -0.77 indicates Positive momentum. The RSI at 32.36 is Neutral, neither overbought nor oversold. The STOCH value of 32.83 is Neutral, 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 43 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 (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $192.79M | 29.84 | 16.11% | ― | 15.35% | 71.35% | |
55 Neutral | $227.20M | ― | -230.96% | ― | 32.24% | -66.93% | |
51 Neutral | $211.30M | ― | -55.25% | ― | 22.01% | 10.02% | |
49 Neutral | $193.36M | ― | -20.21% | ― | -8.92% | 31.98% | |
48 Neutral | $6.35B | 1.19 | -46.26% | 2.67% | 19.24% | 1.75% | |
47 Neutral | $179.83M | ― | -170.97% | ― | -12.80% | 28.80% | |
46 Neutral | $172.35M | ― | 271.41% | ― | 417.83% | -609.71% |
* Healthcare Sector Average
Performance Comparison
ANIK
Anika Therapeutics
13.64
-11.67
-46.11%
ELMD
Electromed
22.53
7.88
53.79%
RCEL
Avita Medical
8.62
-0.84
-8.88%
OM
Outset Medical
10.16
-20.44
-66.80%
LUNG
Pulmonx
5.25
-2.22
-29.72%
TLSI
TriSalus Life Sciences
5.51
-3.99
-42.00%
Anika Therapeutics Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -20.28% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
While there are notable achievements such as significant growth in the commercial channel, international OA pain management, and the Integrity implant system, challenges persist with declines in the OEM channel revenue and adjusted EBITDA. The financial outlook remains cautious with profitability impacted by pricing pressures from J&J in the OEM segment and decreased gross margins.Highlights
Commercial Channel Revenue Growth
Commercial channel revenue increased by 25% in Q4 and 17% for the full year, driven by international OA pain management and the launch of the Integrity implant system.
International OA Pain Management Success
International OA pain management grew by 22% in Q4 and 16% for the full year, highlighting strong geographic expansion and market share gains.
Integrity Implant System Growth
Integrity realized over 40% sequential growth for three consecutive quarters, with more than 1,000 surgeries performed globally since its launch.
Regulatory Progress
Significant regulatory achievements include the filing of the second PMA module for Hyalofast and receiving MDR approval for Hyalofast.
Lowlights
OEM Channel Revenue Decline
OEM channel revenue decreased by 8% in Q4 and for the full year, impacted by lower volumes and competitive pricing pressures from J&J.
Decreased Gross Margin
Fourth quarter gross margin was 56%, down 13 points from the previous year, due to one-time legacy program expenses and product mix changes.
Adjusted EBITDA Decline
Adjusted EBITDA from continuing operations decreased by 44% compared to the previous year, primarily due to legacy program expenses, product mix, and higher R&D costs.
Company Guidance
During Anika's fourth quarter and year-end earnings call for fiscal year 2024, the company reported a total revenue of $30.6 million, marking a 1% increase compared to the previous year. The commercial channel saw a significant growth of 25% year-over-year, reaching $10.9 million, driven by a 22% international growth in OA pain management and a 32% rise in regenerative solutions. Notably, the Integrity product achieved over 40% sequential growth, with more than 1,000 surgeries performed since launch. However, OEM channel revenue declined by 8%, primarily due to reduced sales from J&J. The company also announced the divestiture of Arthrosurface and Parcus Medical to focus on core HA products, which are expected to drive future growth. Anika's adjusted EBITDA for continuing operations was $3.6 million, a decrease of 44% from the previous year, attributed to one-time legacy program expenses and increased R&D investments. Looking forward, Anika anticipates a 12% to 18% growth in its commercial channel for 2025, with continued expansion of Integrity and international OA pain products.Anika Therapeutics Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Anika Therapeutics Announces COO Departure and Role Elimination
Neutral
Apr 10, 2025
On April 4, 2025, Anika Therapeutics announced the departure of Anne Nunes, their Chief Operations Officer, effective April 25, 2025. Her responsibilities will be taken over by Stephen Griffin, who is currently the Executive Vice President, Chief Financial Officer, and Chief Operating Officer. The company has decided to eliminate the Chief Operations Officer position, indicating a strategic shift in its operational management structure.
Spark’s Take on ANIK Stock
According to Spark, TipRanks’ AI Analyst, ANIK is a Neutral.
Anika Therapeutics is navigating a difficult period with declining revenues and profitability challenges. While there are positive developments in strategic focus and product growth, the financial and technical analyses indicate significant risks. The company’s valuation further reflects these concerns, with no current dividend yield and a negative P/E ratio.
To see Spark’s full report on ANIK stock, click here.
M&A TransactionsBusiness Operations and Strategy
Anika Therapeutics Sells Parcus Medical to Medacta
Positive
Mar 11, 2025
On March 7, 2025, Anika Therapeutics completed the sale of its subsidiary, Parcus Medical, to Medacta Americas Manufacturing for $4.5 million in cash, marking a strategic move to sharpen its focus on hyaluronic acid-driven osteoarthritis pain management and regenerative solutions. This divestiture is part of Anika’s strategic review to better position itself in its core areas, ensuring a smooth transition for stakeholders and enhancing its market positioning in the orthopedic industry.
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.