Anika Therapeutics, Inc. Q4 FY2024 earnings call

• Divested Arthrosurface in Q4 2024 and completed the sale of Parcus Medical in early 2025, aligning with focus on core HA products.
• Fourth quarter total revenue up 1% year-over-year; commercial channel up 25%, OEM down 8%.
• Integrity had over 40% sequential growth for the third straight quarter, with over 1,000 surgeries globally since launch; white paper on rotator cuff repairs showed positive clinical results.
• Partnered to develop new Integrity products, filed second PMA module for Hyalofast, and held Type C meeting with FDA for Cingal.
• Commercial channel expected to grow 12%-18% in 2025, OEM channel expected to decline 12%-18% in 2025.

In the fourth quarter of 2024, total revenue was $30.6 million. Commercial channel revenue was $10.9 million, up 25% year-over-year, contributing approximately 35.6% of the total revenue. OEM channel revenue was $19.7 million, down 8% year-over-year, contributing approximately 64.4% of the total revenue. For the full year 2024, revenue was $119.9 million. Commercial channel revenue was $42.1 million, up 17% year-over-year, contributing approximately 35.1% of the total revenue. OEM channel revenue was $77.8 million, down 8% year-over-year, contributing approximately 64.9% of the total revenue. Integrity realized more than 40% sequential growth in the fourth quarter, with over 1,000 surgeries globally since its launch.

• Anticipate commercial channel revenue for 2025 to be between $47 million and $49.5 million, a 12%-18% increase.
• OEM channel revenue for 2025 is expected to be at the lower end of $64 million to $68.5 million, a 12%-18% decline from 2024.
• Adjusted EBITDA for 2025 expected to be between 8% and 10%.

• Forward-looking statements are subject to risks and uncertainties where actual results could differ materially from anticipated future results.
• Regulatory uncertainties related to the approval processes of Hyalofast and Cingal.
• Competitive pressures in the OEM channel, particularly for Monovisc and Orthovisc in the US.

Q: What were the one-time legacy program expenses referred to?

A: Some program expenses related to legacy product lines that were no longer being carried, onetime in nature, between $1 million and $2 million.

Q: Can you provide quantification of Integrity uptake from surgeons?

A: Integrity uptake is being driven by a broad set of surgeons, not a handful; there's broad interest with strong presence at medical meetings like the American Academy of Orthopedic Surgeons.

Q: What's the timetable for Cingal's nonclinical testing completion?

A: Haven't given an updated timetable yet; need formal feedback from FDA on bioequivalence study design after Type C meeting to provide timing update.