The share price of
Anika Therapeutics, Inc.
) shot up 12.2% on Aug 2, 2013 to close the trading session at
$27.28. The stock was buoyed by strong second quarter 2013
results, which included a positive earnings surprise of 21.21%.
This Zacks Rank #1 (Strong Buy) company has now delivered
positive earnings surprises for three consecutive quarters. Anika
also reached a 52-week high of $27.80 on Aug 2.
Anika reported earnings of 40 cents per share in the second
quarter of 2013, ahead of the Zacks Consensus Estimate of 33
cents and the year-ago earnings of 26 cents per share. Earnings
benefitted from higher revenues, which were up 6.1% to $20.8
million. Revenues also surpassed the Zacks Consensus Estimate of
Anika's second quarter total revenues primarily consisted of
product revenues apart from licensing, milestone and contract
revenues. The company's net product revenues were up 6% to $20.1
Product revenues in the reported quarter primarily benefitted
from encouraging performance of the company's Orthobiologics
segment (up 51% to $16.5 million). The impressive performance was
due to the strong sales of Anika's viscosupplementation product,
Orthovisc (up 49%). Orthovisc demand was high particularly in the
Growth was also witnessed in the Dermal (up 258% to $0.6 million)
and Surgical (up 25% to $1.8 million) segments. Sales of
Opthalmic (down 91% to $0.5 million) and Veterinary products
(down 33% to $0.7 million) were, however, disappointing in the
second quarter of 2013.
Management stated at the second quarter conference call that the
company's primary focus will now be on its viscosupplementation
candidate, Cingal. The company initiated a phase III clinical
study on Cingal during the second quarter of 2013.
The study will assess the candidate's efficacy for symptomatic
relief of joint pain in patients suffering from osteoarthritis of
the knee and have not responded to conservative treatment. Anika
expects operating expenses to increase during the second half of
the year as the phase III study progresses.
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Management nevertheless expects second half revenues to surpass
the first half figure. We are encouraged by the second quarter
results at Anika and expect it to continue performing well.
Apart from Anika, stocks such as
Biogen Idec Inc.
Gilead Sciences Inc.
) also carry a Zacks Rank #1.