I have more questions than answers. Why with current assets far above current liabilities and far above the $.97 share price of today does no one apparently see significant value in ANIK shares?
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Friday March 2, 7:59 am Eastern Time
Press Release
Anika Therapeutics Announces 2000 Fourth Quarter and Year End Results
Begins ORTHOVISC Phase III Clinical Trial
WOBURN, Mass.--(BUSINESS WIRE)--March 2, 2001--Anika Therapeutics Inc. (Nasdaq:ANIK - news) today reported revenue of $7,116,000 for the fourth quarter ending Dec. 31, 2000 compared with $3,618,000 for the fourth quarter of 1999.
The company recorded net income for the quarter of $2,339,000, or $.24 per diluted share, versus net income of $368,000, or $.04 per diluted share, for the same period last year. Included in fourth quarter revenue was $4,249,000, which Anika recognized in connection with the previously announced early termination of a marketing and distribution agreement with Zimmer Inc.
Recognition of this revenue had been deferred in accordance with the company's revenue recognition policies. Excluding the impact of this one-time event, fourth quarter results would show revenue of $2,867,000 and a loss of $1,361,000, or $.14 per share.
Revenue for the year ending Dec. 31, 2000 was $16,335,000 compared with $13,483,000 for 1999. Anika recorded net income for 2000 of $174,000, or $.02 per diluted share, compared with a net loss of $2,496,000, or $.24 per diluted share, for 1999. As noted above, results for 2000 include revenue of $4,249,000 recognized in connection with the previously announced early termination of a marketing and distribution agreement with Zimmer Inc.
Excluding the impact of this one-time event, year 2000 results would show revenue of $12,086,000 and a loss of $3,526,000, or $.35 per share.
In addition, results for 1999 included a first quarter charge of $3,625,000 for a change in accounting principle relating to revenue recognition for non-refundable fees, the remaining unamortized portion of which is included in the one-time fourth quarter 2000 revenue adjustment referred to above. Income for 1999 before the cumulative effect of this accounting change was $1,129,000, or $.11 per diluted share.
The company also announced today that it has commenced a new Phase III human clinical trial for ORTHOVISC®, its treatment for osteoarthritis of the knee. This new trial is designed to include 360 patients at up to 20 centers in the U.S. and Canada with monitoring for six months after initial treatment.
J. Melville Engle, chairman, president and chief executive officer, said, ``Our plans currently call for increased investment in research and development, particularly relating to processes that may produce different physical characteristics and uses for hyaluronic acid (HA).''
Engle said he was pleased with the commencement of the ORTHOVISC trial, consistent with plans the company announced in November 2000. He added that total research and development costs for 2001, including clinical trials, are currently expected to be approximately twice 2000 levels.
During the quarter, Anika established logistics arrangements with third-party firms to ensure continuing distribution of ORTHOVISC by Anika to patients and physicians in Canada and certain European nations previously served by Zimmer.
Engle further noted that Anika plans to begin a clinical trial for INCERT®-S, a cross-linked HA formulation designed to inhibit scarring and reduce pain following spinal surgery, during the second quarter of 2001. The trial, which is anticipated to initially involve 100 patients, will monitor scar tissue formation and pain levels following spinal surgery and will be conducted at up to 20 clinical centers in the U.S.
About Anika Therapeutics
With headquarters in Woburn, Mass., Anika Therapeutics Inc. (www.anikatherapeutics.com) 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®, a treatment for osteoarthritis of the knee (not approved for sale in the U.S.), Anika markets HYVISC® in the U.S. for the treatment of equine osteoarthritis through Boehringer Ingelheim Vetmedica Inc. and manufactures AMVISC® and AMVISC® Plus, HA viscoelastic products for ophthalmic surgery, for Bausch & Lomb.
Therapies currently under development include INCERT®, a family of HA products designed to prevent post-surgical adhesions. Anika is also collaborating with Orquest Inc. to manufacture OSSIGEL®, an injectable formulation of basic fibroblast growth factor combined with HA, designed to accelerate the healing of bone fractures, which is also under development.
The statements made in this press release which are not statements of historical fact are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve known and unknown risks, uncertainties and other factors. The words ``believe,'' ``will,'' ``would,'' ``expect,'' ``anticipate,'' ``intend,'' ``estimate,'' ``plan,'' and other expressions that are predictions or indicate future events and trends and that do not constitute historical matters, identify forward-looking statements. The company's actual results could differ materially from any anticipated future results, performance or achievements described in the forward-looking statements as a result of a number of factors. In particular, there can be no assurance that the company will: (i) begin clinical trials of INCERT-S or successfully complete clinical trials of ORTHOVISC or INCERT-S; (ii) obtain clinical data which will support a PMA application and/or FDA approval of either ORTHOVISC or INCERT-S; (iii) submit a pre-market approval application in a timely manner or at all or receive FDA or other regulatory approvals of ORTHOVISC or INCERT-S; or (iv) obtain such approvals in a timely manner or without the need for additional clinical trials. In addition, there can be no assurance that any delay in receiving any such approvals will not adversely affect the company's competitive position or, if completed, meaningful sales of the products will be achieved. The company cannot make any assurances that the termination of the distribution agreement with Zimmer will not have a material adverse impact on sales of ORTHOVISC or that the company will be able to obtain adequate or appropriate distributors for sales of ORTHOVISC or INCERT-S. Moreover, there can be no assurances that the company's investments in research and product development will lead to viable products or revenue growth. 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 headings ``Business,'' ``Risk Factors and Certain Factors Affecting Future Operating Results'' and ``Management's Discussion and Analysis of Financial Condition and Results of Operations'' in the company's Annual Report on Form 10-K for the year ended Dec. 31, 1999, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2000, June 30, 2000 and Sept. 30, 2000, as well as those described in the company's other SEC filings. <<
I began to copy and paste the earnings statement and balance sheet before remembering that they would not format correctly on SI. But with approximately 10mm shares outstanding, they have cash and short term assets far above $1 a share. Guess I need to go look at the debt also. Lance |
