Anika Therapeutics Inc. (ANIK) is an orthopedic medicines company and it employs its hyaluronic acid (HA) technology for developing various treatments. The company offers a good potential for medium to long term investment as it has a strong and diversified product pipeline. Apart from the pipeline, it also has robust drug portfolio with products such as Orthovisc, Monovisc and Cingal. While these products have been in the market for quite some time, the company is still expanding its market share and is likely to keep seeing accelerated growth rate.

Anika’s lead drug candidates are HYALOFAST and ORTHOVISC-T. While Hyalofast is currently in Phase III trial, the company plans to start phase III trials for Orthovisc-T by the end of this year. The drugs are expected to perform well in the trials as these drug candidates are already approved in several overseas markets. The company is also in robust financial position as it recently reported its first quarter results. It reported 24 percent year over year growth for its Monovisc revenue. The company’s net income stood at $5.5 million, or $0.37 per diluted share.

While the company offers short term catalyst in the form of upcoming announcement related to the launch of Phase III trails for Orthovisc-T, the real value of the stock is likely to be unlocked in medium to long term. As can be seen from impressive growth shown by the company products, Anika is expected carve a niche for itself in orthopedic market.

Risks

Anika Therapeutics has relatively mild risk profile. The company has established products in the market while its drug candidates have high probability of receiving the FDA approval as well as of performing well in the market. However, the company is currently waiting for the FDA approval for Monovisc and Cingal for additional indications, which are hip indication and knee indication respectively. Any failure or setback in receiving such approval may hamper the company’s plans to expand its positioning. It may also have negative impact on the liquidity position of the company.

Catalysts

The company stock is currently trading close to its 52 weeks high of $54.96. However, it is still 10 percent lower, thus showing a solid upside. Despite, robust operating performance shown by the company, the stock lost 8 percent of its value in the past 12 months. As the company has impressive fundamentals, which are expected to provide long term value, the current price point offers a good opportunity for medium to long term investors.

Management

Charles H. Sherwood, Ph.D.

President and Chief Executive Office

Charles H. Sherwood, Ph.D. has been President and Chief Executive Officer of Anika Therapeutics since 2002. Dr. Sherwood joined Anika in 1998 with extensive experience in research, engineering, manufacturing, quality assurance, regulatory affairs and business management. Dr. Sherwood holds a doctorate and master’s degree in polymer science and engineering from the University of Massachusetts, a bachelor’s degree in chemical engineering from Cornell University and a certificate in management from Claremont Graduate School.

Sylvia Cheung

Chief Financial Officer

On April 1, 2013, Sylvia Cheung was appointed as Chief Financial Officer. Ms. Cheung brings to Anika a substantial number of years of financial and general management experience. Prior to her current position, Sylvia was the Vice President of Strategic Processes. Sylvia holds a bachelor of business administration degree in accounting from the University of Massachusetts in Amherst, a master’s degree in business administration from Boston University, and is a Certified Public Accountant (inactive).

Investment strategy

Entry - Current price point and at any dip

Profit Point – Medium to Long term holding

Hold duration – Medium to Long Term

Price Target (consensus) - $51.50

Exit (Partial) - $51.50 in short term

Resources 

Company Overview

Latest SEC Filings