Anika Therapeutics, Inc. reported significant financial changes in its 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a decline in revenue, with total revenue for the three months at $38.8 million, down 7% from $41.5 million in the same period of 2023. For the nine-month period, revenue decreased by 2% to $121.2 million from $123.7 million. The decrease in revenue was attributed to declines in its OA Pain Management and Joint Preservation product families, as well as a notable drop in Non-Orthopedic revenues.
Gross profit for the three months ended September 30, 2024, plummeted to $1.4 million, a 94% decrease from $24.9 million in the prior year. For the nine-month period, gross profit fell to $53.4 million from $76.8 million, marking a 30% decline. This resulted in gross margins of 4% for the three-month period and 44% for the nine-month period, down from 60% and 62%, respectively, in 2023.
The company reported a net loss of $29.9 million for the three months ended September 30, 2024, compared to a loss of $6.6 million in the same period of 2023, reflecting a 355% increase in losses. For the nine-month period, the net loss was $34.5 million, up from $19.7 million in 2023, a 76% increase. The loss per share for the three months was $(2.03), compared to $(0.45) in the prior year.
Anika's operating expenses saw a decrease, with selling, general, and administrative expenses dropping to $19.1 million for the three months ended September 30, 2024, from $24.8 million in 2023. This reduction was attributed to a $3.3 million arbitration settlement payment and cost savings from headcount reductions. Research and development expenses also decreased to $7.2 million from $7.8 million in the same period.
Strategically, Anika sold its equity interests in Arthrosurface on October 31, 2024, and announced plans to divest Parcus Medical to concentrate on its core hyaluronic acid technology and regenerative solutions. The company recorded a non-cash impairment charge of $27.4 million related to the sale of Arthrosurface, reflecting the expected proceeds being less than the carrying value of its net assets.
As of September 30, 2024, Anika's total assets were $231.4 million, down from $270.6 million at the end of 2022. Cash and cash equivalents decreased to $62.4 million from $72.9 million. The company reported a net cash provided by operating activities of $3.8 million for the nine months ended September 30, 2024, a significant improvement from cash used in operations of $(5.4 million) in the same period of 2023.
About Anika Therapeutics, Inc.
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