Anika Therapeutics Inc. · NASDAQ:ANIK
Anika Therapeutics — UBS Global Life Sciences Conference 2006
30 slides from Anika Therapeutics's conference presentation, Sep 27, 2006
Slide 1: Anika Therapeutics, Inc. UBS Global Life Sciences Conference
Anika Therapeutics, Inc. UBS Global Life Sciences Conference September 27, 2006
Slide 2: Safe Harbor Statement
Safe Harbor Statement The statements made in this presentation 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 a
Slide 3: Company Overview
Company Overview Public company since 1993 with market capitalization of $130 million Develops, manufactures and commercializes therapeutic products and devices for tissue protection, healing and repair Current products target ophthalmic and osteoarthritis markets New product development includes: H
Slide 4: Investment Highlights
Investment Highlights Market trends driving growth potential Aging population maintaining high levels of fitness Market for cosmetic procedures growing rapidly International demand and untapped domestic potential for OrthoVisc® Posted record product revenue in Q206 CTA product Significant growth opp
Slide 5: Recent Accomplishments
Recent Accomplishments Grew OrthoVisc ® 52* percent International: 37 percent Domestic: 100+ percent Signed new international distribution agreements Advanced CTA product Obtained CE Mark Signed worldwide development and commercialization agreement with Galderma Pharma * 6M 2006
Slide 6: Opportunity
Opportunity
Slide 7: Product Revenue by Franchise
Product Revenue by Franchise * 2006 financial information is based on six month results 6M2006 (in thousands) $9,907 $915 $2,307 $10,512 $1,745 $3,073 $11,533 $2,054 $8,699 $10,380 $2,074 $7,939 $5,482 $910 $6,978 0 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 2002 2003 2004 2005 2006 * Opht
Slide 8: Product Revenue by Franchise (% of total)
Product Revenue by Franchise * 2006 financial information is based on six month results % of Total Product Revenue 0% 10% 20% 30% 40% 50% 60% 70% 80% 2002 2003 2004 2005 2006* Ophthalmic Hyvisc Orthovisc
Slide 9: Osteoarthritis Business Review
Osteoarthritis Business Review Strong growth in international OrthoVisc® sales Increased sales and royalties from DePuy-Mitek Clinical trials initiated to support franchise expansion HyVisc Gold standard for equine osteoarthritis care Leverage brand equity to penetrate global markets
Slide 10: OrthoVisc Product Sales
OrthoVisc® – Product Sales * 2006 financial information is based on year-to-date results 6M2006 (in thousands) $2,307 $3,073 $4,030 $4,669 $6,295 $1,644 $4,880 $2,098 0 2,000 4,000 6,000 8,000 10,000 2002 2003 2004 2005 2006 * International U.S.
Slide 11: Osteoarthritis Market
Osteoarthritis Market Osteoarthritis (OA) - the most common form of arthritis Increase in inflammatory cytokines and degradative enzymes Causes breakdown and loss of cartilage leading to pain and swelling Over 20 million in U.S. have OA (10 million in knee) By 2030, 70 million in U.S. at risk for OA
Slide 12: Growing Worldwide Osteoarthritis Market
Growing Worldwide Osteoarthritis Market Source: Frost & Sullivan 2004 (in millions) $957 $1,023 $1,080 $1,153 $1,234 0 200 400 600 800 1,000 1,200 1,400 2006 2007 2008 2009 2010
Slide 13: Viscosupplement Market Participants
Viscosupplement Market Participants High Molecular Weight 2005 U.S. market estimate by product (Anika) Hyalgan 29% Supartz 11% Synvisc 58% OrthoVisc 2%
Slide 14: OrthoVisc Growth Strategy
OrthoVisc Growth Strategy Gain market share in U.S. by highlighting competitive advantages of OrthoVisc ® Expand indications to include shoulder, hip and other joints Open new international markets where pricing is attractive Develop line extension and new products
Slide 15: Ophthalmic Business Review
Ophthalmic Business Review Perfect blend of performance properties Strong marketing partners Bausch & Lomb Staar Surgical Modest growth expected for 2006 Products used in most ophthalmic intraocular surgeries Gold standard in viscoelastics
Slide 16: Anika Ophthalmic Sales & U.S. Competitive Landscape
Anika Ophthalmic Sales & U.S. Competitive Landscape Market Share Source: Anika, Frost & Sullivan 2004 Anika Ophthalmic Revenue 2002 - 2006 U.S. Viscoelastic - $162M * 2006 financial information is based on year-to-date results YTD (in thousands) $9,907 $10,512 $11,533 $10,380 $5,482 0 2,000 4,000 6,
Slide 17: Innovation
es | | os oe Innovation
Slide 18: Product Pipeline
Product Pipeline Drug Delivery Pivotal Pivotal Pilot Pilot Market Market Regulatory Regulatory Approval Approval Clinical Development Clinical Development Preclinical Preclinical Development Development Research Research Product Lines Product Lines Veterinary Hyvisc ® Next Generation Osteoarthritis
Slide 19: Cosmetic Tissue Augmentation (CTA)
Cosmetic Tissue Augmentation (CTA) Growing demand for soft tissue fillers Facial wrinkles Scar remediation Lip augmentation Global market - $300* million (2005) U.S. market - $200* million (2005) HA procedures – up 35% in 2005** Worldwide distribution agreement with Galderma Pharma Before After * De
Slide 20: Galderma Agreement
Galderma Agreement Signed development and commercialization agreement in July 2006 Worldwide leading dermatology company Active markets in 65 countries 915 medical sales representatives and 33 affiliates, globally 58% of dermatology sales derive from U.S. and Canada
Slide 21: CTA Timeline
CTA Timeline Expect PMA approval in Fall 2006 Submit supplements to CE Mark and PMA approvals late 2006 Address cosmetic issues and shelf life Efficacy and safety not an issue Believe no additional trials necessary Galderma to launch enhanced version of CTA product in mid-2007
Slide 22: Product Development Strategy
Product Development Strategy Develop a series of line extensions for CTA Future products may include: Mesotherapy Fine Lines Lips Develop pipeline of products to address issues of joint health Palliative Protective Restorative
Slide 23: Growth
® e.. ©? e Growth @ .. eye
Slide 24: Selected Income Statement Data
Selected Income Statement Data $0.14 $0.10 Pro Forma EPS $0.7 $0.7 $0.7 $4.1 $2.9 Contract/Other Revenue $7.1 $6.3 $4.8 $6.0 $4.1 Product Revenue $0.12 $1.3 48% $7.0 Q2’05 $7.8 $7.0 $5.5 $10.1 Total Revenue $0.12 $0.08 $0.07 $0.22 Diluted EPS $1.4 $0.9 $0.8 $2.5 Net Income 59% 51% 53% 37% Product Gr
Slide 25: Product Revenue
Product Revenue (in thousands) $5,677 $4,084 $5,999 $4,774 $6,266 $7,115 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06
Slide 26: Total Revenue
Total Revenue (in thousands) $7,291 $7,020 $10,058 $5,466 $6,953 $7,798 0 2,000 4,000 6,000 8,000 10,000 12,000 Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06
Slide 27: Product Gross Margin
Product Gross Margin *Product gross margin for Q3’05 reflects recall of Ophthalmic product line. 47% 48% 37%* 53% 51% 59% 0% 10% 20% 30% 40% 50% 60% 70% 80% Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06
Slide 28: Selected Balance Sheet Data
Selected Balance Sheet Data $37.9 $0 $46.6 $44.7 Dec 2005 $49.0 Working capital $46.1 Cash & cash equivalents $0 Debt $41.6 Stockholders’ equity Jun 2006 (in millions)
Slide 29: Building Momentum in 2006/2007
Building Momentum in 2006/2007 Leverage partnerships to drive domestic and international OrthoVisc sales growth Obtain PMA and prepare worldwide CTA product launch Advance at least one next-generation product concept in our pipeline into the clinic Achieve significant cost reductions through process
Slide 30: Anika Therapeutics, Inc.
Anika Therapeutics, Inc.
Anika Therapeutics — UBS Global Life Sciences Conference 2006 on 6ix