Anika Therapeutics Inc. · NASDAQ:ANIK
Anika Therapeutics — Q4 2022 Earnings Presentation
20 slides from Anika Therapeutics's earnings presentation, Mar 6, 2023
Slide 1: Q4 and Year-End 2022 Earnings Call
Q4 AND YEAR-END 2022 EARNINGS CALL MARCH 6, 2023 ANIKA. RESTORE ACTIVE LIVING.™
Slide 2: Safe Harbor Statements
SAFE HARBOR STATEMENTS Cautionary Note on Forward-looking Statements The statements made in, and during the course of, this presentation that are not statements of historical fact, including those related to the Company’s commercial capabilities, initiatives and production, its product pipeline and
Slide 3: Value Creation Inflection Point with Product Launches Underway
VALUE CREATION INFLECTION POINT WITH PRODUCT LAUNCHES UNDERWAY Leadership in OA Pain Market • #1 market share1 in U.S. and strong growth OUS with Orthovisc® and Monovisc® • Cingal® commercialized in 35+ countries outside the U.S. • Advancing Cingal for commercialization in the U.S. Building a Best-i
Slide 4: Q4 and Year-End 2022 Business Highlights
Q4 AND YEAR-END 2022 BUSINESS HIGHLIGHTS Revenue growth of 11% in the fourth quarter, 6% for the year (all comparisons to 2021) • OA Pain Management1 up 20% in Q4, up 9% for the year CINGAL® • Joint Preservation and Restoration up 8% in Q4, up 4% for the year • Non-Orthopedic1 down 46% in Q4, down
Slide 5: RevoMotion Reverse Shoulder Arthroplasty System Launch
REVOMOTION REVERSE SHOULDER ARTHROPLASTY SYSTEM LAUNCH ADDRESSING THE OVER $800M+ U.S. REVERSE SHOULDER MARKET “The next big leap in reverse shoulder Bone Preserving Design - Smallest arthroplasty design is bone preservation and Diameter Baseplate implants more individualized to the patient. RevoMot
Slide 6: Key Product Development and Clinical Trial Timeline
KEY PRODUCT DEVELOPMENT AND CLINICAL TRIAL TIMELINE NEW PRODUCT LAUNCHES ACCELERATE JOINT PRESERVATION GROWTH IN 2023-2024+ Product Category Pre-Clinical/Clinical FDA To Market Est. U.S. Market Size ($)1 Total Arthrosurface WristMotion® Joint Solutions Launched 2021 $30M Tactoset® Regenerative Hardw
Slide 7: Expanding Market Opportunity in Joint Preservation
EXPANDING MARKET OPPORTUNITY IN JOINT PRESERVATION FROM $1B IN 2019 TO $8B+ TODAY ANIKA PORTFOLIO MARKET IN GLOBAL MARKET OPPORTUNITY1 OA Pain Management (HA/Visco) GROWTH RATES2 Monovisc® Orthovisc® ~1% CAGR Cingal® (International) ► Cingal (U.S.) Extremities >$4B Regenerative Solutions Tactoset® H
Slide 8: A Robust and Differentiated Shoulder Portfolio
A ROBUST AND DIFFERENTIATED SHOULDER PORTFOLIO WITH A SPECIFIC FOCUS ACROSS THE CONTINUUM OF ROTATOR CUFF DISEASE X- Twist Fixation System RevoMotion Reverse Shoulder ~99,000 ~700,000 ~$2.0B ANNUAL PROCEDURES1 $800M+ ANNUAL PROCEDURES1 $600M+ 5% Market Opportunity Across 11% MARKET1 5-YR CAGR Should
Slide 9: Q4 FY2022 Financial Highlights
Q4 FY2022 FINANCIAL HIGHLIGHTS Three months ended December 31, 2022 2021 Change Total Revenue $39.6M $35.8M 11% OA Pain Management $23.7M $19.7M 20% Joint Preservation and Restoration $14.3M $13.3M 8% Non-Orthopedic $1.5M $2.8M (46%) Gross Margin/Adjusted Gross Margin 61%/66% 51%/57% 10 pts/9 pts Op
Slide 10: Fiscal 2022 Full Year Results
FISCAL 2022 FULL YEAR RESULTS Fiscal 2022 Results 2022 Guidance Total Revenue $156.2M / up 6% Low to mid single-digit % (upper end) OA Pain Management $97.9M / up 9% Mid to upper single digit % Joint Preservation and Restoration $50.4M / up 4% Low to mid single-digit % Non-Orthopedic $7.9M /down 18%
Slide 11: 2023 Revenue Outlook
2023 REVENUE OUTLOOK Revenue Growth TOTAL COMPANY $158 to $163 million (Growth of 1% to 4%) OA Pain Management $93.5 to $96 million (Growth of 2% to 4%) * Joint Preservation and Restoration $55.5 to $58 million (Growth of 10% to 15%) Non-Orthopedic Approximately $9 million (down ~35%) * * Beginning
Slide 12: Anika's Compelling Investment Thesis
ANIKA’S COMPELLING INVESTMENT THESIS Expanding Market Opportunity in Joint Preservation and Restoration • Acquisitions and new products expand TAM from $1 billion in 2019 to $8+ billion1 market today with ~5-7% market CAGR • Positioned to accelerate growth in 2023 and beyond Leadership Position in O
Slide 13: Non-GAAP Reconciliation and Supplemental Data
NON-GAAP RECONCILIATION AND SUPPLEMENTAL DATA 13
Slide 14: Statement of Operations
STATEMENT OF OPERATIONS Anika Therapeutics, Inc. and Subsidiaries Consolidated Statements of Operations (in thousands, except per share data) (unaudited) For the Three Months Ended December 31, For the Twelve Months Ended December 31, 2022 2021 2022 2021 Revenue $ 39,622 $ 35,821 $ 156,236 $ 147,794
Slide 15: Balance Sheet
Anika Therapeutics, Inc. and Subsidiaries Consolidated Balance Sheets (in thousands, except per share data) BALANCE SHEET December 31, December 31, ASSETS 2022 2021 Current assets: Cash, cash equivalents and investments $ 86,327 $ 94,386 Accounts receivable, net 34,627 29,843 Inventories, net 39,765
Slide 16: Reconciliation Tables – GAAP Gross Profit to Adjusted Gross Profit and Adjusted Gross Margin
RECONCILIATION TABLES – GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN Anika Therapeutics, Inc. and Subsidiaries Reconciliation of GAAP Gross Profit to Adjusted Gross Profit (in thousands) (unaudited) For the Three Months Ended December 31, For the Twelve Months Ended December
Slide 17: Reconciliation Tables – GAAP Net Income to Adjusted EBITDA
RECONCILIATION TABLES – GAAP NET INCOME TO ADJUSTED EBITDA Anika Therapeutics, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted EBITDA (in thousands) (unaudited) For the Three Months Ended December 31, For the Twelve Months Ended December 31, 2022 2021 2022 2021 Net (loss) income
Slide 18: Reconciliation Tables – GAAP Net Income to Adjusted Net Income
RECONCILIATION TABLES – GAAP NET INCOME TO ADJUSTED NET INCOME Anika Therapeutics, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted Net Income (in thousands) (unaudited) For the Three Months Ended December 31, For the Twelve Months Ended December 31, 2022 2021 2022 2021 Net (loss)
Slide 19: Reconciliation Tables – GAAP EPS to Adjusted EPS
RECONCILIATION TABLES – GAAP EPS TO ADJUSTED EPS Anika Therapeutics, Inc. and Subsidiaries Reconciliation of GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share (per share data) (unaudited) For the Three Months Ended December 31, For the Twelve Months Ended December 31, 2022 2021
Slide 20: Revenue by Product Family
REVENUE BY PRODUCT FAMILY Anika Therapeutics, Inc. and Subsidiaries Revenue by P roduc t Family (in thousands, exc ept perc entages) (unaudited) For the Three Months Ended December 31, For the Twelve Months Ended December 31, 2022 2021 $ change % change 2022 2021 $ change % change OA Pain Management