ANIK - Earnings call 2 2023 | Anika Therapeutics, Inc.

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Operator

Good evening, ladies and gentlemen, and welcome to Anika's Second Quarter 2023 Earnings Conference Call. [Operator Instructions]I will now turn the call over to Mark Namaroff, Vice President, Investor Relations, ESG and Corporate Communications. Please go ahead.

Mark Namaroff

Thank you, and good afternoon, everyone. And thank you for joining us for Anika's second quarter conference call and webcast.

our release and after Investor discussion is located anika.com press the close Relations today. earnings that at today slides market available as QX was for the issued of website we Our used PowerPoint the supplementary on our With call the on are: Dr. me today Cheryl Treasurer. Levitz, Vice Blanchard, Executive Chief President, Mike and and Chief Financial President Officer; Executive Officer and during #X.Before certain open of a slide presentation Securities today Slide moment statements to that understand and the the call statements we take XXXX. forward-looking please Please refer begin, in constitute as the made and defined Act Exchange These risks statements on and beliefs current certain and and expectations are based uncertainties. to are subject our materially company's future any anticipated or The differ results, results actual from achievements. could performance data statements that from We make no today. obligation presented to update events financial the differ or forward-looking these future statements occur should Please we share, recent also measures. more during includes adjusted used and adjusted EBITDA, risk factors financial per filings performance.In in adjusted refer net could GAAP non-GAAP in income gross are information margin, measures, may the accordance or to about results for addition, see presented affect adjusted to financial our with earnings most that addition which call, adjusted SEC our which several additional an our of We non-GAAP measures performance. believe that provide viewing of and aspects way operation business. when But our GAAP more considered measures, reconciliation understanding and the complete financial measures, they of with of GAAP even provide an our available non-GAAP at these President to now of quarter slide adjusted turn like release.And measures the measurements second financial of the and Dr. CEO, end call I'd to comparable the are press reconciliation XXXX The our most and deck the GAAP over to presentation Blanchard. Cheryl Cheryl?

Cheryl Blanchard

XX% line quarter joining strong Pain bottom Management I'm Slide say pleased Mark. OA that strong margins growth with Anika our with performance. Good by very for second us. turn gross Please to afternoon, overall driven X. Thanks, and business improved everyone, to and delivered results revenue thanks

as than outstanding Monovisc which with revenue product stronger to the our markets U.S. strong grew was serve.Our J&J accelerating and XX% the core business which excludes Cingal led we in by from nonorthopedics, growth timing globally, the in an business, at Management Mitek is order anticipated gain U.S. Looking growth traction the result XX%, we outside favorable the products Pain parts growth of OA continue

Now through based good shortly. the results as Mike we're family very XXXX, for year, our to-date, this halfway outlook the on for describe will raising product

trial. the market the forward Our primary since they results XX pleased OA We're have interactions robust and Pain U.S. with best products FDA outside truly in team J&J's U.S. to further on is with together performance the in our clinical Management pivotal pain double-digit continue product U.S., progressing Pain of Phase quarter.Cingal Cingal non-opioid next-generation the to last as to the becoming Orthovisc, performance successfully OA Management over endpoint approval. of we the Monovisc market Cingal, strong in with the that the regarding fall have posting share see position and our On our markets #X we're U.S. market to looking of been choice OA and growth met any expand when latest the topic, market. international X of our the bringing

have parties. we our developments the commercial Asian update them and with and secure to clinical the markets, with you interest Cingal toward We Type been with FDA had has received, and and initial and as approval.With source substantial share. development processes are meeting quarter multiple in for The engage engage well the U.S. U.S. I'm we'll pleased partners, derisking select actively as we a C ongoing as pleased to with commercial to the have we to in second respect

though quarter, a we industry large products drove demand, portfolio the of Preservation causing Joint newest originally of experienced Restoration focus dynamic joints. as to expected strengthen, continues recent Our the growth second and than greater our on pent-up slower our and in some continued distributors

actively taking action growth product, limited to newest is to feedback. are pleased our and objectives.I'm RevoMotion, receive has We this positive determining the been earlier System, accordingly where momentum as and our hybrid our Shoulder channel the report that meet clinical growing within to since opportunities continue which Arthroplasty Joint seeing strengths are very Preservation release Reverse in U.S. year we

training HA-based We've in will the initiated for Boston. to and are our relative of Implant of solution or RevoMotion original the for to signed that plan, that we used full XD full May, our enabling Joint contribute accelerating total the for be the Annual of release to as on them market agreement Technologies, first-generation new of market. our named cuff Orthopedic second system, in offer call submission their XXXX. of Hyalofast customers, structural process to September the limited and to surgeons the number us they in of enrollment pleased will Summit treat a allows FDA year The also thrilled business report Integrity. and the or our repair, putting announced the clinical to AIM excited slate cartilage the has in position each increased the the patches X to completed acceleration regenerative a our HA-based have we're rotator begin modular engaging an granted shoulder developing our to we in in and now have our In to both we've and this because with Integrity end regenerative be Materialise, of FDA fact, PMA full year.I'm the modular we're very patients OSET the solutions concluding the our better the opportunities, collagen next software trial, inherent by us happy a with PMA our patch the integrity called submission Management to it We surgeons provide Preservation of compared process, half launch filing launch Evolving Hyalofast both in AIM Meeting the accelerate us year, market review Phase and the RevoMotion of we in force customized products.On sales progress innovative conjunction we module.Lastly, by a reverse in in which are Anika with will of to to scaffold as leader capability this systems. current planning for front, available with

of Integrity cell nailed surgeon designs thickening. the Additionally, with instrumentation infiltration, team. just critical system. of healing solution a implant fixation for believe key and as remodeling acid updates. surgeons.Let and into us now tailored the market to with as delivery tendon will important. developer all ease and driver to elegant cuff me through Integrity the fast-growing serve value patch conjunction contribute scaffold we've for methods is, Anika, And an the our seamless, rotator improved cuff efficient are allowing hyaluronic and in and repair system use we regenerative tissue instrumentation, the And move clinical fixation innovative a The as is the augmentation pipeline rotator supports delivery by the

X. to you If turn Slide please

acid across with Solutions. and Management, Arthrosurface in portfolio addressing Anika unmet intervention years, X Over the as leveraging been in orthopedics past investing OA hyaluronic a needs Sports Joint early Pain Regenerative, and leader purpose establish core Medicine global to our we've expertise and

of $X product expanding pipeline near- of opportunity by to this a differentiated cadence in more updated a Hyalofast the and exciting billion We've key longer-term advanced have products. high over medium-term market launches substantial Regenerative more slide, now and opportunities to opportunity sight become filings with number items opportunities with Anika's Cingal reflecting is medium with of on Our spaces.First, regulatory in line the spaces. for previous pipeline OA short U.S. to Pain now Management to both term,

$X to U.S. pivotal approach. fully OA Cingal adds Anika $X an modular well-defined has Pain market with study a already estimate our Phase billion Hyalofast, key and for Cingal, our the that a by filing market by to breakthrough driver Orthovisc XXXX, the next-generation with Monovisc billion.Hyalofast value off-the-shelf be Hyalofast excited repair over served perfectly additional addressable as opportunity about enrolled, and designating billion a U.S. and X market is the device market now is win. we FDA We're a and PMA the very pathway expect to cartilage to also now this product, served by $X positioned We

applications. launch exciting X higher Tactoset, as we of in game also for The for XXXX. we we compared with for is the System patches, Also, $XXX expansion launch.On an regenerative final version, for have and the more first-generation a Cingal is X upcoming have about expect in growth. for we now about and allowing histology update valuations collagen healing and cleared, opportunities to system and weeks for compelling shoulder filed changer, characteristic XXX(k) in product million also key patch enhance certain an necessary million for wait to this the build all market-leading under HA market. this patch, we through technologies, data which As visualization to be beyond Integrity of Hyalofast, surgeons attractive Arthroscopic and filed XXX(k)s quite we are XX the will already M&A our recent the an our are market.Given some excited can't new a contrast believe support HA-based collagen averaging the market has driver we With I to tears seeing that will a share rotator on product the use this will believe to $XXX fluoroscopy, augmentation important surgeons support ready our over cuff matrix woven transactions

the the at Dr. meeting anchors with last use to surgeries in on reported cuff pullout demonstrated study study in significant New in presented augment pain Dr. Tactoset. same the statistically incidence XX the XXX peer-reviewed Health The of to using repairs potential of to be the significant statistically augmenting performed procedures and reduction in in anchor data Tactoset.Second, patients rotator who represent key a first journal significant anchors resulted clinical repair market of compared in scores AOSSM study in months.First, the findings benefits Suri, augment was without Orleans. highlight month followed suture published series decrease rotator a in the clear Ochsner evidence a suture Tactoset. cuff using These the Tactoset for by Suri of over to a suture Tactoset in Tactoset is Misty that suture anchors X

with cuff for and early system the our very suture gaining patients.Our version well, continues new traction surgeons expect rotator release as in a their clear market medicine in augmentation market following and repairs for evidence to the peak which clinical X-Twist positive ongoing momentum increase in the is we build, of is adoption the full to sports feedback. both anchor surgeon As win QX

Shoulder to expect reach commercial our continue products, we follow-on key and beyond to the market limited we our now launch we including System, new year.Lastly, $X competing we've product, fast-growing in with Arthroplasty reverse presence next surgeon version billion Reverse market what expand a originally release, a RevoMotion, base planned. U.S. successful As the had expanded biocomposite shoulder developing also has and this are we that

results accelerating review This line As ever remainder our to market stakeholders.Now the are with call solutions in occur our deliver release turn I to noted the progress limited from strong to early our that active we guidance Mike? the unmet these truly quarter year. September. up restoring over we world. on a full for living billion the to release, like all in the than Together value portfolio needs positions Cingal market of based across second better tremendous mission $X Anika for intervention meaningful I'd that RevoMotion, the have solve opportunity to around orthopedics, results and with earlier, Mike assembled opens of in a to

Michael Levitz

Management, Mitek quarter on walk increase over global reduced to increased XX% product J&J XX% growth led grew Restoration, second and turn customer percentage by X. lower increasing now approximately million Please and Revenue in to by million, will ordering OA distributors. for on growth Pain the favorable partially largest the in year, $XX.X OA nonorthopedic revenues. Preservation XXXX.I'm an Joint the Slide offset $XX.X to results report Cingal, the both sales to international total total X Pain for our Cheryl. due family, demand of from to the our company and Monovisc points. in prior growth you, pleased you revenue U.S. and I revenues Management financial nonorthopedic Thank our through patterns in lower quarter and quarter by The of from

significantly vary can our the on revenues reminder, based a patterns As basis and a by U.S. in quarterly partners on internationally. ordering

recent million but stabilizes revenue quarter remained to X-Twist product that and in market $XX.X release moves to from launches on and full in However, volatility the basis.Our an in Joint the Cheryl generally annual limited growth Preservation second in highlighted. as such X% quarter release RevoMotion, our of early on increased the Restoration September, which latter as

to saw higher noncash unfavorable quarter from the $X.X well do gross continued primarily Our by to nonorthopedic and last Parcus of amortization margin as impact the not the acquisition-related impact XX% time as revenues distributor profitability $X.X Medical. support increased last timing in which exit includes reflecting and lines million, that growth year our second the veterinary Arthrosurface million our product XXXX from revenue declined year-over-year our from acquisitions of order buys.Our and XX% objectives, from expense legacy of

launch operating of efficiencies.From the and largely namely to related acquisition-related regulations, million from totaled of shareholder year in margin, in year amortization, million was the corporate quarter, adjusted spending or or year. in our $X.X Pain development loss or due quarter in included XX% upcoming share $X.X for with Europe, quarter, The excludes down higher to support spending expenses of expenses from $X.XX growth, $X.XX to new of rotator prior $X.X for MDR last standpoint, income $X.X We expanded product million $XXX,XXX which in manufacturing loss from share. our readiness Integrity second loss this business of net global mix an mostly up million That's That's costs, net April. million products in as which up diluted last Our to generated second share up gross per quarter quarter adjusted well key and this million the due adjusted period products, OA operating Management last the the also increased as in a in activism compliance $XX.X per XX% same resolved $X.X net or per favorable year. system.Our legacy of of $X.XX the that patch per to the share. nonrecurring net increase from our cuff for $XX.X our million as was $X.XX HA-based such costs

quarter EBITDA second from quarter.Lastly, was gross the generated that associated The Parcus last up outflows of cash million improved to second our other shareholder We Medical of second nonrecurring settled was quarter million Medical of the for capital the nonrecurring both by well quarter, net to $X.X growth settlement part due activism structure. first had the in XXXX in and during adjusted Our the offset $X.X year. quarters margins, $XXX,XXX nonrecurring arbitration second million, operating reflecting Parcus primarily quarter in increase arbitration was during regards cash flow primarily with for incurred $X.X million corporate the revenue of as costs. and of paid $X.X in and as certain the the in largely corporate and costs, the with costs

would growth $X $X.X in totaled quarter and subject in capabilities, million open lines through product outstanding last key million, as flows be investments program. RevoMotion.Additionally, supporting stock open the Management as Directors market stock new in positive split capital was $XX an by with which market our quarter well to under would $XX.X cash associated and $XX second continued cash second in million, accelerated second We from we such to of repurchase quarter million authorized the manufacturing launches down quarter, no a related Anika's in the in second activity Pain and spent Board and and This stock instruments product as ended under year debt. concluded under is the expenditures repurchase in program Our which first slightly accelerated million May in to new program an an the stock our the repurchase July. initiated that be repurchase OA an between with program

and sheet drive to continue As initiatives Anika maintains to to self-fund positioned a value.Please our balance to Slide well growth healthy X. shareholder is turn

X% year growth Joint financial above-market Management $XX and previously ancillary outlook $XXX $XX million. $XX.X Restoration lower to-date, accelerated million to OA lower low nonorthopedic is X% Now X% to X% strong and the by positive million as year. revenues. by end to of XXXX. are announced revenues as positive total Preservation The expect continue to with for previous be a offset reduced this $XX.X in representing the I'd outlook $XXX.X million, in full of approximately up Management, to That's year fiscal raising our last and of Pain nonorthopedic points.In updated adoption progress fiscal on our our revenue range compared expect on year, our market. in year greater of revenue XXXX market-leading company growth range review we to X year percentage to over globally. products revenue Based growth growth for we momentum now an like Pain million our million outlook gain over This to we of last year-to-date to OA up progress

As basis over one Joint expect revenue you Restoration, second last on and patterns, acceleration and between while expect quarters products third million to our timing revenues that's distributor due relatively over X-Twist half to of Management at we of new up $XX.X a and year we year, to quarterly due to vary another.In fourth Pain can to be $XX year, to RevoMotion. Preservation the look the primarily such ordering the million, last an level as X% XX% now OA

our year's Cheryl our range revised the growth seasonality.We normal ramp Our to reflects nonorthopedic now half, $XX million a year $X In approximately was outlook from sales this our $X.X our This higher expect second legacy slower-than-expected XX% revenue order and last products year, timing. than hybrid assumes previous veterinary as outlook time approximately through million, of mentioned. guidance is bit previous outlook million a $XX.X a million. to of million, of primarily last channel, of and updated to buys $XX last decrease due

of as demonstrate support outlook gross as to to regulations, the operational Management legacy and for the We be development year roughly the expect EBITDA key growth compared margin to our as global products. be adjusted our have no X% continue for and low reflecting positive preservation margin to rest primarily in enhanced capabilities in OA changes to expanded to the well year, year and Pain line year with sustainable compliance joint with to products, single the cost of launch adjusted P&L last for the digits last

first costs was Medical in with due the associated year arbitration half of spending higher While the the activism. to Parcus nonrecurring and primarily shareholder

both end the key outlook be to Cheryl. settled to over in we the targets that Now raise for half the in will compared our decrease quarter, as we and expect revenue are to the first of now on execution second XXXX over of for new and pleased our and of back both drive second turn low have the half.In summary, expenses year, through operating the call the now development track launch products.I halfway to operational margin XXXX we

Cheryl Blanchard

X. turn Thanks, to Please Mike. Slide

a solutions strength Pain Before intervention acceleration our want I of HA-based Q&A, to Pain acid robust regenerative to progress best-in-class cuff the and thank afforded continue solutions. solid growing this for all sports OA position take and sheet our market-leading the early the minimally-invasive self-fund maintain repair to moment we'll rotator Management we debt.I'd mission living our tremendous able as reiterate progress people and Cingal, joint employees now portfolio hard in next-generation Anika's including and regenerative a growth that, for for in in by hyaluronic orthopedics. dedication achieve of meaningful we non-opioid questions. momentum of our cash made differentiated balance Management, and our historic for strengthening been active portfolio around and OA work And healthy continued we've cartilage to work We're our addressing open excitement like for further our with no to for viscosupplement portfolio, pleased development across in already the across we their already we've real our the restoring efforts. building OA line Together, a building to see product, call medicine to opportunities strength world.And open solutions Pain up up the assembling supporting as to on the with made the to we've are

Operator

Thank And George [Operator from you. Instructions]. comes question Sellers. first our

George Sellers

look been just I this But apologize call if detail call might rollout could like? partnership I partnership curious us on to I to a that and commercialization from what could We've if jumping bit was little U.S. on missed additional Orthovisc like some Or look commercial be a this Cingal, sort afternoon. give the the process in if potentially of with Monovisc and earlier. similar Mitek? you what that'd color

Cheryl Blanchard

Cingal. Yes. remain We very question the appreciate that about. a Thanks, about George. It's product obviously excited we

going we fact the just osteoarthritis really partnership the in a around next-generation United unparalleled Cingal understanding with I have product. around fulsome think, States what run that our value. as pain reduction I pain best is data to opportunities OA for considering see shareholder optimizing We're a process

development of made shareholders Our have in investments the product. significant that obviously

in So and on fact the driving relative not shareholders.I'm parties interest there, we're also. with select into around potential there talked there to U.S., get also we're significant the we're going about is details interest that lot of really our markets, or Asian and but obviously engaging in discussions seeing outcome structures, we've the to right focused a

I we the to Cingal in the in speculate to conversations come product U.S. on that. continuing process. or excited get on a dialogue want about and to provide our remain details way around would any get really So of with that But our also more wouldn't FDA. the fulsome

George Sellers

a last of why back of were? there outlook a Switching to the expectations lighter That bit and to Joint helpful our quarter? what a just I'm quarter curious Okay. where is quarter, step Restoration. and That's at least. strong little exiting relative was a little than that really was Preservation it really first And then took drivers it this color. bit some

Cheryl Blanchard

really all, we've number question. Great products. of Preservation Yes. of first a strong Joint built out our business, On

with RevoMotion. feedback strong We and continue them clinical very on get X-Twist to

quarter full limited really are full in -- release finished market first in are X-Twist, of first and the kind the a release in market we of RevoMotion. We of

of I We're these to this about got larger ourselves are don't portfolio to products markets, that that where attention what and an additional force we we Integrity hybrid are focused we've the are we're we that launches.Another exciting valuable and to force. we're in fully-owned growing where focus us learning that And don't the an our to has of thing are really we to areas fact relative a distributors as distributors seeing consider to drive exciting we've and are are we need product I'll sales the hybrid growing continuing selling example, spend. hybrid give to full ahead we've sales in burden be strengthen. the way that's cost the of actively on want there distributors.I'll force. with focus action And we built strengths be are those at are, that but full nicely. we're entering on where sales products command that really amongst meet that around get and tell continuing that sure from those Integrity. have force and strengths going we sales with about fixed that that growth you ways drive very just approach you So products, our that to objectives.I is we our launch that to why them, And product. so those determining focusing try those make around to really taking That's the weaknesses will tell that you thoughtful gone these

-- we're there how growth And space, going that can of optimize some Our sell report seen of chomping focused past in other last in distributors kind Many which that that distributors the thing so really product.The in distributors thoughtful we we potential Joint to that out really are distributors some were our that Knee growth are other our competitors being the seeing it. the about Hip the Large quarter sell is, with bit not. are mention decide to on quarter. Integrity we some our the of the products. at we're really of for of large we And how businesses, get this of are you've opportunities and I'll

getting with Preservation of through of a those better so, got refocused coming all the us anniversary-ing distributors new that joint, on business and Anika's think, I patients gets are with gets kind we're Joint that through large the system day that bolus the product driving. the post-COVID And great with us to launches

George Sellers

Okay. That's detail. if really little appreciate a all helpful. one touched squeeze that could just could a Integrity. I'm if mentioning you I bit, I you really, And give more. on curious actually maybe little bit you've to on could launched that, received more at detail the for end be there left this what's and already that potential that is a XXX(k) clearances the And go? of year? And

Cheryl Blanchard

continues continue launches. and to a to us very about. a excited regenerative portfolio really with build to our product to be is on shoulder number that are pathology product Great of focus continued our Integrity we we've question. It on really focused Yes. that that allows other

and patch surgeons.The hyaluronic the acid the darts instrumentation fixation So fixation of and based surgery that and on is cuff Integrity include a that the staple to bone ease the system has that and allow delivery for ease a cuff. fixation system to for for regenerative rotator allows component full elements patch fixation of

for received clearances are X fixation elements. those And we so the that XXX(k)

to to now that we're progress we've just to with see final But incredibly final information so, head-to-head to if we've good be in have providing certainly forward you around we surgeon product XXX(k) out will definitely more know. to that our study incredible team that done, we've worked we'll excited let the And develop technologies there made the first-generation and regenerative really a significant there. in XXXX. And about timing, relative is The waiting collagen with We capacity process the this news, this. patch. launch the on with look we we looking on this launch.Relative

George Sellers

appreciate Great. end. the at one squeeze I Okay. more to there getting

Cheryl Blanchard

Absolutely, George.

Operator

from Thanks. question comes Sidoti. Jim next And our

James Sidoti

meeting your necessary? the with if about another a talk Can of think FDA? be would some little you the you more trial Can options after Cingal you disclose bit for

Cheryl Blanchard

Yes.

the that Cingal had with requirements. the a around that kind around steroid conversations a fund don't FDA around aspects the meeting were So C now full-factorial the really HA-Monovisc the we've another expect we trial, the that there other clinical in the we making of regulating questions And NDA is to and drug. sure of fact that of Type in address about FDA focused discussions XXX(b)(X) number like while are as

topics are to on -- waiting and the to really a we around of discussion to that on. I hear what we really really we're to learn some on So things hear back update want they couple were back or we that back, wouldn't we'll hear actually as speculate was them we certainly proposals more. around to And from but waiting focused from address that, when submitted additional you FDA them

James Sidoti

for potential fund, to partner requirements are FDA? needed the a could distribution get whatever through Cingal And

Cheryl Blanchard

question. an And that involve the obviously I ongoing some So countries. those multiple upfront, we typically structures have select And have deals again, in U.S. good which Asian sort streams expect. work of and of the types around partnerships would

trial intention But or would a is again, large that whatever fund the hereon a there Anika there's work additional an to that clinical be is for out. some cash not funding full-factorial potential help necessary. infusion So from

James Sidoti

is remind me Okay. trial? follow-up enrollment [ The And what's through completed. just fixation for that you can the then follow-up switching Hyalofast ]. to And

Cheryl Blanchard

Yes.

follow-up X the years. -- is So

XXXX. in be will out patient last the So

that start the So XXXX. file be the filing And in module our PMA clinical XXXX. we will modular we'll module final then in

James Sidoti

any the will XXXX us data you how an And able first performed of release the on in product idea to round? be to give

Cheryl Blanchard

with as clinical you the people for in been are are not is outside U.S. about that already one we've U.S. tell actually I'll Hyalofast. There out there thing selling the Hyalofast years that many I'm about product many, familiar Well, sure publications XX-plus

So we've not we will already were and when will a it know last of of out studies be be from pivotal will patient OUS.In FDA terms data the be XXXX. the independent how that it which following done after disclosing based unblinded in that's trial, the on we performs, study, number until

James Sidoti

to up XX%, just million, from back pain second this for on joint All of out year. quarter around you're come quarter. then revenue, the right. that world. mean, looking of to half down switching $XX a Based the over And million your average The $XX.X the guidance, I to

it strong why Is it this that to Or quarter? you Mitek? -- pace? is don't strong that Or is and So think at timing orders continues primarily June Cingal? of

Michael Levitz

take this Mike. Jim, I'll is that question.

than As you following which is definitely to from second business. transfer ordering so the a why and stream our happens, end to Anika you're the raised would happen momentum favorable underlying really product user quite company guidance uneven a Pain rate it largely large that dealing for timing revenue the had it's of that OA in sales. through, we credit And And they that is got of of got just can lumpy been be. you you've know, was lot higher when a reason some that's and operations of for like that for are our much a team time, majority with revenues run was There a related in our because royalties, J&J amount the quarter-to-quarter. year just sales.We is quarter, tremendous component what normal the patterns for effort.But the our Management the

than to that's for half, a it it's underlying and why business. the the U.S., trend. the principally; Mitek QX patterns a did and that's QX guidance.So sales from in level. were going for strong saw saw half, strong we we between And But the to first lower both tell our can which Cingal, for we far of outside lower what and at end-user QX, the and and we that units that's able momentum, in raise even very the were basis and the as second will transfer encouraging, So and continue raise yes, the continuing probably ordering in the as Monovisc, say the been that's I tried be was strength that guide. be reflected the to and for And

James Sidoti

before. ever quarter this Is pain Okay. highest ever had million recall the products? you've joint I for don't quarter $XX a

Michael Levitz

and is look operationally that that, excited and strong have growing and about was see a that to tremendous I quarter, really both demand but we're to encouraging. back see, this execution to very occurred

quarter. with yes, very the was I So pleased

James Sidoti

then follow-up. right. just And more one All

I the think Joint down side don't Preservation first other which the the you of million quarter, in On $X the business, expected.

might needed Large as any from surgeries that mentioned mean access category You maybe million there you there ]. first Joint and much didn't of be is it a I to in think quarter? $X that as the you patients [ why the have backlog reason before other were you down

Cheryl Blanchard

very the Hips coming force of large number Yes, just of distributors seeing system. Hip certainly in sell through Knee our sales the that Knees. really dynamics a And and hybrid think I also bolus patients our and a of business industry the

I from Anika Hip -- distributors the definitely of on focused though, say, our that there for and an there a being side was probably will the from business.I business Knee perspective, are focused distraction distributors growing the those think nicely. growing very it a view, so, And focus and very there on Anika Anika are that was in

to Hip in do understand very of is on thoughtful there's to be our one business. still new that to very the But that with the with product based that and continue we're happened we're dynamic especially relative same see We on making. that the JPR on investment So force; Knee and opportunity we're additional still that the we about business, the about the time, understanding how focused and the bullish business work growth launches, it. a hybrid there, and doing how sales things really to that for we're we at tremendous optimize go

Michael Levitz

And Jim, is Mike. this

make. Just one other comment I would

timing in recall quarter, of first one the things we that out internationally. was there If you the favorable called was

that out to we where And as wasn't be and saw. we there the called was in it timing we really decrease first the said business. was U.S., first and in international these And the going in what quarter, quarter, probably in a the whatnot, new second that exactly we're that's second the in the launching headwind products quarter, come the or so, a

James Sidoti

Okay.

to quarters? the few over a next So be double-digit grower this that is business there will think any not reason

Michael Levitz

Yes. No, year. Jim, year, X% I mean half to first the if of the of I accelerated X% last look we through at in the guidance, second the We're guidance half is that the XX%. we have

much this full go seeing into the XXXX as market half one the at mover expect We try it's about It's we the of as excited it it, as a buy of we is have encouraging ] quarter. end people things not and works.But And tend a point, follow second that of they year. of for big really then how to out accelerate third it release at as that, the on XXXX. the RevoMotion. this look year to in [ it see later into just And move at we're because

did So One yes, this an year. seasonality. see do is expect normal half do we thing acceleration the we mention, of I though, second in

so, normal, expect and things really what just -- encouraging. strong based which that QX, And seem implies year on returned to we that's is a this have to

James Sidoti

that's then remainder I question mean talking with when of was said I for the 'XX And Yes. what didn't I meant digit grower. and double I 'XX, my about beyond.

Michael Levitz

view Yes. double-digit business, that We growth yes. as a

Operator

you concludes and ladies gentlemen, have no Thank more we conference. participating. This And in for queue. today's the questions

disconnect. now may You

Anika Therapeutics (ANIK) 8 Aug 232023 Q2 Earnings call transcript