earningsWOBURN, Mass., Sep 7, 1999 (BW HealthWire) -- Anika Therapeutics, Inc.
(Nasdaq:ANIK) today announced that for the third quarter ending
September 30, 1999 it expects to record revenues in the range of $3,100,
000 to $3,300,000 and a bottom line ranging from $.01 in net income to
a loss of $.02 per fully diluted share. For the third quarter of 1998,
Anika reported revenues of $3,180,000 and net income of $741,000, or
$.07 per fully diluted share.
J. Melville Engle, chairman, president and chief executive officer,
said the company anticipates lower than expected sales for the third
quarter primarily due to a disruption in Turkish sales of ORTHOVISC(R),
the company’s treatment for osteoarthritis of the knee. "Due to the
catastrophic earthquake in Turkey on August 17, we have honored the
request of our Turkish distributor, Biomeks Pharmaceuticals, to delay
the delivery of certain ORTHOVISC orders until the fourth quarter of
1999. We don’t expect to recover the third quarter loss of Biomeks’
orders by the end of the year," Engle said. "Turkish medical personnel
and facilities are focused on treating the injured, so treatment of
osteoarthritis patients in the earthquake area is currently a secondary
concern."
Engle also said that while sales of ORTHOVISC in Europe are increasing,
initial sales growth for the product has been slower than expected due
to the timeframe and complexity in obtaining national reimbursement in
the various countries. "We are working closely with Zimmer (a
subsidiary of Bristol-Myers Squibb), our primary European distributor,
and a specialized reimbursement consulting firm to expedite the process
for obtaining reimbursement throughout Europe," Engle said.
Anika Therapeutics, Inc. develops manufactures and commercializes
therapeutic products and devices intended to promote the repair,
protection and healing of bone, cartilage and soft tissue. These
products are based on hyaluronic acid (HA), a naturally occurring,
biocompatible polymer found throughout the body. In addition to
ORTHOVISC (not for sale in the U.S.), Anika markets HYVISC(R) in the
U.S. for the treatment of equine osteoarthritis through Boehringer
Ingelheim Vetmedica, Inc. and manufactures AMVISC(R) and AMVISC(R)
Plus, HA viscoelastic products for ophthalmic surgery, for Bausch &
Lomb Surgical. Therapies currently under development include INCERT(R),
a family of HA products designed to prevent post-surgical adhesions.
Anika is also collaborating with Orquest, Inc. to manufacture
Ossigel(R), an injectable formulation of basic fibroblast growth factor
combined with HA designed to accelerate the healing of bone fractures.
The statements made in this press release which are not historical
facts are forward-looking statements within the meaning of Section 27A
of the Securities Exchange Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. The Company’s actual results could
differ materially from those set forth in the forward-looking
statements as a result of a number of factors. In particular, there can
be no assurance that ORTHOVISC orders received from Biomeks in the
fourth quarter will be at the same level as previous quarters. Also,
there can be no assurance that the Company and/or Zimmer will obtain
reimbursement approvals in European countries, or, if such approvals
are obtained, they will be garnered on a timely basis or at a
satisfactory level of reimbursement. Certain other factors that might
cause the Company’s actual results to differ materially from those in
the forward-looking statements include those set forth under the
heading "Risk Factors And Certain Factors Affecting Future Operating
Results" in the Company’s 10-K, filed with the Securities and Exchange
Commission on March 31, 1999, as well as those listed in the Company’s
other SEC filings.