Anika Therapeutics(US:ANIK)2024-10-31 11:20Financial Performance - Anika reported third quarter revenue of $38.8 million, a decline of 7% compared to the same period in 2023[2]. - Revenue for Q3 2024 was $38,753,000, a decrease of 6.2% from $41,465,000 in Q3 2023[18]. - Total revenue for Q3 2024 was $24,428,000, a decrease of $460,000 or 2% compared to Q3 2023[25]. - Revenue for the first nine months of 2024 was $75,404,000, down by $1,451,000 or 2% from the same period in 2023[25]. - Overall revenue for the combined product families in Q3 2024 was $38,753,000, a decrease of $2,712,000 or 7% from Q3 2023[25]. - For the first nine months of 2024, combined product family revenue was $121,197,000, down by $2,494,000 or 2% from the same period in 2023[25]. Revenue Breakdown - U.S. OA Pain Management revenue decreased by 5% to $24.4 million, primarily due to reduced market access and competitive pricing pressures[2]. - Regenerative Solutions revenue increased by 17% to $2.7 million, driven by over 40% sequential growth in the Integrity Implant System, which was used in approximately 200 surgeries[3]. - The company expects Commercial Channel revenue growth of 14% to 19% in 2024, while OEM Channel revenue is projected to decline by 8% to 10%[8]. Expenses and Losses - Gross profit for Q3 2024 was $1,440,000, down 94.2% from $24,944,000 in Q3 2023[18]. - Total operating expenses decreased to $29,457,000 in Q3 2024 from $32,618,000 in Q3 2023, a reduction of 6.6%[18]. - Net loss for Q3 2024 was $29,918,000, compared to a net loss of $6,576,000 in Q3 2023, representing a significant increase in losses[18]. - Basic net loss per share for Q3 2024 was $(2.03), compared to $(0.45) in Q3 2023, indicating a significant decline in per-share performance[24]. Adjusted Metrics - Anika's adjusted EBITDA for 2024 is projected to be between $16 million and $18 million, impacted by lower U.S. OA Pain Management revenue and divestitures[9]. - Adjusted gross profit for Q3 2024 was $25,031,000, compared to $27,253,000 in Q3 2023, reflecting a decrease of 8.1%[21]. - Adjusted EBITDA for Q3 2024 was $5,431,000, an increase from $4,650,000 in Q3 2023, indicating improved operational performance[22]. Strategic Initiatives - The company announced the sale of Arthrosurface and plans to divest Parcus Medical to focus on core HA technology and Regenerative Solutions[6][7]. - The company plans to categorize revenue into Commercial Channel and OEM Channel starting in Q4 2024, with the Commercial Channel expected to achieve a CAGR of ~17% since 2021[1][5]. - The first module of the Hyalofast PMA was filed with the FDA on October 28, 2024, with a planned U.S. launch by 2026 targeting a $1 billion addressable market[3][6]. - Anika has repurchased $5.3 million of shares as part of a $40 million buyback program[6]. - The company anticipates long-term adjusted EBITDA margin expansion following the planned launch of Hyalofast by 2026[9]. Asset and Equity Changes - Cash and cash equivalents as of September 30, 2024, were $62,368,000, down from $72,867,000 at the end of 2023[19]. - Total assets decreased to $231,405,000 as of September 30, 2024, from $270,632,000 at the end of 2023, a decline of 14.5%[20]. - Stockholders' equity decreased to $179,864,000 as of September 30, 2024, from $212,265,000 at the end of 2023, a reduction of 15.3%[20].