ANIK - Earnings call transcript Q4 2023 | Anika Therapeutics, Inc.

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Operator

Good evening, ladies and gentlemen, and welcome to Anika's Fourth Quarter and Year-End 2023 Earnings Conference Call. [Operator Instructions] I will now turn the call over to Mark Namaroff, Vice President, Investor Relations, ESG and Corp. Communications. Please proceed.

Mark Namaroff

Thank you. everyone. afternoon, Good joining XXXX for Anika's Quarter Fourth Thank Call us and Year-end Conference webcast. and you for

and Chief Our earnings Chief today. With Investor press the release used supplementary was issued open take Mike after will Levitz, and that and at as be on today available PowerPoint located Dr. slides market are the the is Officer; we on Please presentation website the our discussion Relations for slide www.anika.com our me Treasurer. today close Cheryl Vice the Executive Financial President, refer call a #X. and moment Blanchard, President and Slide Officer Executive to of

no of that current certain today we statements the risks and as and future presented statements please understand during Act are any uncertainties. made in or expectations to occur achievements. constitute These The on based materially or statements certain XXXX. data Before beliefs are from differ statements company's our forward-looking and that call make from to could the events actual subject differ defined and our begin, Exchange performance results, future statements results Securities financial obligation forward-looking update today. anticipated risks We should these

for see our more Please SEC could about recent our that also performance. risk factors most information filings affect

used considered GAAP of more provide financial In and non-GAAP understanding income net measures. even and addition, to our financial addition way But refer gross GAAP during or results adjusted our the share, an to and accordance of EBITDA, GAAP additional adjusted with believe complete adjusted business. are viewing call, measures several measures measures when of non-GAAP which of operations adjusted an adjusted in we presented may measures, provide per reconciliation margin, financial which aspects performance. the in includes earnings they We that with

year-end are XXXX our GAAP A the most and reconciliation deck fourth available press presentation slide and results adjusted measurements non-GAAP to the these comparable quarter of of at financial the release. end

I'd CEO, now the turn to President like over our and call Cheryl? to And Blanchard. Cheryl Dr.

Cheryl Blanchard

thanks X. us. and everyone, afternoon, Slide for Good refer Mark. to Please joining Thanks,

We Anika. results, quarter fourth are nicely year for the pleased to rounded report out strong which

course taking a and to achieved our performance path milestones, actions lot clear, key further accelerated year, are with strategy business, stronger and we about XXXX a and of the more the decisive to results. Over focus we even the renewed drive We began to profitability. we energy optimize learned

me Let with our start key achievements.

revenue for with in the outside year had First, year. and sustained of Monovisc the quarter and XX% We the strong the U.S. the record growth and growth double-digit and growth revenues expectations a up XX% quarter management globally Cingal of exceeded pain OA adjusted full on for EBITDA fourth in year

favorable timing to and is While in our market of continue we position underlying is benefited #X order from we to transfer strengthening. the anticipate strong, business Mitek, U.S. the and J&J some position shipments grow that

do continues partnerships as and non-opioid well more for explore countries Cingal and XX continue product opportunities in near-term to very of OA Asian select choice to over pain commercial U.S. in the we the markets. next-generation

they FDA ahead on those tests remaining for with interact with can that we are clarity doing certainty. to continuing and are move all will we to We what obtain with data so can non-clinical require

U.S. knee basis. medicine suffer daily a to XX.X product We this to provide to pain million to pain meaningful remain a the affected citizens bring non-opioid alleviate excited of continue help who U.S. and tremendously the osteoarthritis market the on

billion opportunity expansion from billion. the $X In win. to to OA and fact, to continue U.S. positioned our we pain expect to Cingal will Cingal market is into $X be double

its and medicine over progressed integrity regenerative release November. solutions, joint XXX and key providing system surface throughout with profitability surgeries of the of with a solutions completed future In since building last will and growth the to OA already Arthur driver our market our a also continue well U.S. value implant Pain year. significant nicely regenerative HA Cingal news, opportunity. management is our Anika the businesses core for business be limited we've In in at sports end preservation,

limited feedback a itself it is having significant the X-week are patients This speaks very the of follow-up. approach their well, data, first most system incredibly in exciting reached with many full especially ramp, their been positive, the took preclinical during the regenerative release, design. a and strength implant importantly, and to and doing we Physician has

constraining We surgeon delivery incorporate deployment feedback are arthroscopic and from the limited instruments. rollout we the ensure intentionally and refine to the early release

release cartilage mid-XXXX. release limited the of drive on as will geographic details the platforms product share a in regenerative on that our market HA business off-the-shelf accelerated the back expansion. road more on refreshed half outside leadership active along future in regenerative to of near-term expansion for regenerative repair current very full year. well the to on Integrity I'm in And Hyalofast, continues is with countries U.S. a serve expected underway. in our based product Integrity, of track for key excited to sell single-stage focused position calls. Hyalofast, technology key with and is market The R&D map usage growth number

remains FDA, and milestone As year. next patient clinical U.S. track last device reminder, was early by Hyalofast granted the a designation breakthrough on for trial, out the

modular differentiated key begin We $X by market. also meaningful cartilage billion-plus launch and entrant a PMA repair track the for filing U.S. be a the driver product will remain value and with year Anika target remains this to into Hyalofast XXXX. on a

our delivered X% our sales as and and it the from ramp As I outset, learned growth products to quarter products. X% for offset growth where was year new also at more a as our we mentioned for the lower preservation mature we business, restoration the lot last the year, by joint largely relates of

early in in our and high-value to X-Twist, capture orthopedic HA-based market have in core fast-growing advancing products while investments ultimately developing in intentional the and RevoMotion key intervention fill been our larger Integrity. Those businesses Tactoset, HA great space. We've gaps to regenerative products yielded a portfolio opportunity

beyond. focus turning now are rewards these driving of We year products those reaping and the investments our and this revenue with new to

with and is made we the in our alternatives. product beginning initial version looking ASC important and with progress competitive including entered Exist of Arthrosurface, Medicine X-Twist and for market. The the launches, in the now its X-Twist we QX on a traction Sports particularly who In release, significant biocomposite in great to surgeons limited peak gain RevoMotion. are market performance. year clinical are in receiving this feedback new

address plus U.S. now million versions both available, we entire With the can cuff market. $XXX rotator

anchor driver key to We a expect the line X-Twist future new for product be the in biocomposite XXXX.

drive reverse the as at launched billion QX our are which was U.S. and the system, end fully the well faster-growing adoption we $X and continuously shoulder in surgeons actively market system. training Shoulder Reverse RevoMotion distributors new effective safe of Our the of as with on year competes use engaging to last

we with market open shoulders remains CMS well. quarter our top in do key and to adoption to well very further distributors more we that is two trade cycle. recent a XXXX, design. the well to positioned now ASC access positive, the We given in up the reimbursing very feedback drive where are especially momentum our the in us secured growth pace instrument continue slower-than-expected that positions and despite of fourth expect contracts Clinical complex sales

commercial expect work and takeaway and growing, the accelerate. is we to And will key the underlying channel adoption we pace and our is RevoMotion The adoption as is improve execution, of that continue here for strong to that increasing. exist

in excitement enrollment. clinical showed this In number real and RevoMotion of we XXXX year's Hyalofast Orthopedic of fact, of proud trial returned who important accomplishments a X-Twist, from met with the meeting the and surgeons products. the of Academy very new product and Surgeons around Integrity recently American I'm where completion our with we of U.S. launches our

the and major Europe, on our clarity we for HA-based in on now a focus are MDR made growth investments. investments differentiated be products the of pace such provide to behind set renewed key and meaningful developments and our as Anika's these progress us, highly future. foundation technologies that regenerative regulatory With in for development where requirements on refine in focus current on new the greatest selective we the and future position opportunities the we our driving of JPR which place will growth meeting That

in will a with mid-XXXX, the Piper we the Sandler. that beginning undertook business strategic support note review of of here I

to part review, we this shareholder open remain of value, company a We a our makes sale. As review and increase most including business. evaluated potential value-enhancing the regularly the wide opportunities of sense for options what all for range to

our in pivot newly our conviction leveraging opportunities strategy, value strengths profitability. focused accelerate lot our as and have we highest core We to a of

solid And a flow healthy we pivot with generation no with position a of this making sheet, cash positive balance debt. a from cash position are and strength

our spending and lower we addition, taking EBITDA we XXXX, grow immediately are to line. while simultaneously in action In more accelerate top

recently head we but made actions, reducing very necessary global decision about spending and are count cost by actively of X% the to for difficult XXXX. terms reduce In our

Together, $XX expected drive costs. annualized impact cost excluding savings these approximately actions million, of to are of onetime the

profitability. adjusted and These over expect refined building our be that as with potential. accelerate products well will year, of $XX an midpoint highest our we at the will focus million that between Going we our have driving we this new to to a EBITDA have forward, are XX% already growth underway, the pivot actions value million $XX are increase

year the the Now our and Mike fourth I'd outlook XXXX. details results review and like to turn to the quarter full call over to of for

Michael Levitz

million restoration. turn and Mitek driven as Cheryl. total by increased largest revenues quarter Please growth quarterly presentation. from online preservation X%, million, pleased OA the OA And in X the U.S. continued joint Cingal order the double-digit strong to favorable as expectations, to international exceeding year, Revenue as growth growth by in I'm quarter Pain Slide our reflecting well $XX the in report fourth Management business our U.S. revenue XX% timing you, growth J&J Management, family, international in both for to Pain and some in our and driven year-over-year. finished another our Thank with Monovisc. to better-than-expected product grew in slide grew fourth $XX.X

fourth joint United of which in as $XX.X sales X% as lower X-Twist partially well international million, offset by were Our our preservation growing and sales RevoMotion, by in product driven more restoration increased the products. and with launches the our by to mature revenue continued recent quarter States

disk $X.X veterinary Lastly, our timing high sales. and order on non-orthopedic decreased to X% revenue year-over-year million

gross to margin. Moving

Our $X.X XXXX. acquisitions gross XX% in fourth the of was from expense quarter million and the noncash amortization included of margin acquisition-related in made the impact

the adjusted to XX% down the gross XX% quarter, was from due primarily in year last Our mix. slightly margin revenue

to quarter, charge noncash Parcus expenses. of the assets In $XX.X impairment Medical acquisitions operating from XXXX Anika the a million intangible recorded of early on the Arthrosurface. Moving fourth and

not was and of lower previously ramp launches the XXXX medicine mentioned, our growth sufficient lower mature following sales offset was products. Arthrosurface sports to new revenue more the of As recent as expected in than we product

a totaled release level on quarter. shortly. we in of charge, our MDR the $XX.X $XX.X in to based of result, same million impairment operating our to projects the down date Arthrosurface spending in long-term for Apart move major up outlook, to due in the expenses, to the we XXXX product continued planned will November. limited million activity operating you from quarter, I impairment reduced as lower As as market based lowered Also and on fourth for progress in lower fourth efficiency, of our managing and the Integrity wrapping we've development this charge period expenses families, outlook a resulting from our XXXX, the describe medicine sports

impairment noncash million of quarter Due to net quarter in the the fourth million compared of share or per was primarily or our for net $X.X to per year. $XX loss last share a $X.XX $X.XX charge, the loss

was we an per adjusted the Excluding quarter the adjusted last or $X.XX accounting quarter intangibles from $XXX,XXX grew or primarily from year. generated reduced up in up due quarter adjusted up both X% of $X.XX share acquisitions, net of of Anika share period $X in and the the million the growth $X.X to the EBITDA income X-point margin The to per benefit the XXXX from quarter in million generated last EBITDA revenue combined in loss in the net fourth year. of from the last year, adjusted fourth of quarter $X.X improvement same million spending. XX%, same in and our diluted

cash the quarter. our and the and quarter million same generated $X.X from with regards spending. growth, in up operating Lastly, reflecting business We operating year, capital to last cash during flow $XXX,XXX fourth efficiency reduced structure. of

$X.X well totaled quarter launches. in manufacturing Pain the in expenditures in supporting capital investments new Our product reflecting OA Management growth as associated continued our with lines million, instruments our capabilities, product as

are than outstanding quarter where cash of common expected XXXX. less million flow free now in these due approximately activism year-over-year million settlement We $X quarter as of The well million million. $X planned no with expenditures million stock in the Our million cash costs. Parcus $X the $XX.X nonrecurring to decrease and over capital debt $XX.X the shareholder on costs XXXX to expenditures a nonrecurring in in ended timing, to result in were of $X.X positive used occur in cash is other fourth as associated corporate and repurchase our Medical arbitration, with the

a our maintains both of which program, stock is Anika to capital value million continue and our balance million growth as $XX we stock under shareholder healthy employ a self-fund opportunistically repurchase allocation well drive remains to continue sheet repurchase we and initiatives positioned authorized to strategy balanced $XX outstanding. where

full results like would I prior guidance, and year and XXXX X. to our to for Please expectations our the walk year then provide both XXXX. to turn you for through most our Slide I'll recent to compared as now

generated of family, XX% guidance our at recent For the X%, $XXX.X OA guidance finished million, Pain By million, most recent revenues our increase million. full our Management $XXX.X year, to Anika revenue $XXX product expectations. of beating $XXX an up million above of

in led demand growth to growth growth sales and Cingal sales to in XX% over J&J the internationally in growth due order growing on and XX% by timing. end-user J&J transfer growth favorable XX% some from This royalties U.S. Mitek reflects in and growth X% from XX%

The to part as driven was our the revenues our in in joint growth, revenue guidance. by Our from recent $XX.X most and more international for new offset preservation well lower grew growing continued with as increase restoration line our momentum mature million X% products products. year, from by

to other $X.X order the prior disk finishing totaled due XX% of and million in XXXX from revenues slightly non-orthopedic time veterinary down buys last timing products guidance. the for our primarily favorable to non-orthopedic year, Our year, high

gross GAAP full in Adjusted year prior guidance. year the and For line XXXX XX%, our adjusted year, in was the last XX%, margin up with our our margin gross from XX% was margin reached of addressing and meeting as EBITDA of key MDR of products following year on of the spending X% our reduced objectives, a for X%, requirements. X% number such guidance the major and to accomplishment launch and

Now review XXXX. financial I'd to for turn like to our outlook

Cheryl products greatest prioritized growth we focus where we opportunities. profitability XXXX have the on As the and mentioned, in have accelerated growth with a

family, $XXX grow up XXXX, order to between revenues That's grow due a product compared we This X% timing X%. from By OA to expect to million Management is to XXXX Management. million to down strong, for such, business Pain Pain timing. comparable As but The guidance expect rate OA in XXXX underlying XXXX. up X% primarily difficult remains that's to in X% $XXX and growth $XXX million million. some we from reflects our to due to order $XXX J&J to to

the sales. We led Monovisc end continue United of user outside growth growth States. Cingal above-market to in by double-digit continued and in expect mid-single-digit growth

to our revenues growth up products, to and mature RevoMotion more XX%, newest is by $XX.X as in in to X% X-Twist faster preservation joint offset million, grow and to growth our expect slower We Integrity, $XX million products.

be non-orthopedic to our to million, decrease $X.X expect to million a We of XX% XX%. revenues $X

our intangible expect adjusted adjusted to Please We on range in gross more assets gross be amortization improve the that more the slightly to impairment significantly, for line much margin improve XXXX to charge. acquisitions of will XXXX our lower margin gross with note and XX% GAAP a QX following margin of XX.X%. from

expect to spending our our XXXX. From reduction perspective, based expenses we cost decrease now on a initiatives, in operating

the both and addressing and decision X% the our the at This reduce launches well spending reducing XXXX progress repromotion in the are here spending U.S. quarter. our requirements, successful R&D workforce our to European MDR XXXX. of SG&A difficult includes Following reduction we across as as X-Twist, Integrity, global approximately of of first end

record the to the severance quarter $X in count expect million approximately to We of a charge first reduction. related head

to XXXX. States of provide not actions will of of first Since taken savings in Hyalofast XXXX. actions an annual launch planned end now are together the full its U.S. a filing the savings until quarter, XXXX, $XX in severance used module PMA for the place the the by in charge, the support first at are basis. taking million realized savings annualized these the in expected Excluding on In approximately will of United to fund be portion be the the the

as well regenerative As additional Integrity. products clinical for HA-based our such follow-up as

year. to growth, be representing $XX increase to these With million adjusted This X This OA $XX and actions XXXX. growing adjusted we and part positive points, from million. the revenue free of to expect to net it EBITDA to XXXX EBITDA report our income adjusted XX% in operations, the over focused capital our even Anika an margin flow manufacturing over of spending cash with midpoint. on for translates XX% in positive at an at improvement pivot the Management to anticipated we currently least Pain generate between positions higher also as and due timing

note net On stock-based first the will calculation to administrative adjusted exclude and align note, expense our also beginning in compensation of better EPS with the of please EBITDA. adjusted XXXX, an quarter adjusted income

EBITDA our our now Looking are growth we previously accelerated have expected. beyond profitability XX% targeting a earlier in year XXXX, reaching than target multiyear adjusted XXXX, and

our to no previously growth sports Arthrosurface the longer expect in and medicine, multiyear slower XXXX. stated target by due to While we revenue reach

core result higher the implant Our new levels as accelerated our in profitability as expect and HA-based of Pain target XXXX. OA well exciting franchises, our now strong regenerative significantly integrity and spending EBITDA we Management lower is growing a including systems and

once U.S. planned launches we're as regenerative the approval. of and still from before Hyalofast benefits getting gain FDA started we us have the Cingal and And we pipeline, near-term just our

and while products mission expectations. action your high-opportunity bright future growth that top acceleration. to I'll ahead XXXX, support value. on as new for continue in significant positions We laser-focused that the remain line greatly the bottom Cheryl. summary, we And driving more Anika we shareholder products, adjust call turn over launched the future. in line, advancing growth do In appreciate of to form and our high-quality top and bottom took the line back but spending In on of We Anika's basis growth this. driving now we even will we XXXX, grew a we

Cheryl Blanchard

refer to Thanks, Mike. Please X. Slide

key very OA Before in are Management year we our a business. points. Q&A, exciting a few was record year progress to had want Pain up the We I regenerative open which future. for XXXX a with call reiterate our for and portfolio, to our both strong core

Our products encouraged our to portfolio. broader across about positive the business we continue the receive for opportunity feedback incredibly ahead and are

We that investments. beyond. and to pace of Taking we've our deliver We're stronger our elements significant even business confident clarity accelerated these gained to about well path a also growth on determined performance year we focus results. the to are in profitability together, drive completed strategy this important of Preservation Joint all and optimize and

our surgeons line they thank continuing that, absolutely And appreciate we'll for Together, sales and that employees, most And with partners, the you for the questions. and products say To at delivering living restoring support XXXX your the world. invest beyond. treat. our and are and patients and open partnership up contributions active to for to in Anika. in new potential are We your continued have we to and present, we around our distributors people areas to and growth the great products, training, want work past those I in

Operator

line [Operator Sidoti first Company. & from Sidoti Your Jim comes the from Instructions] question of

Unknown Analyst

first is reduction? will for the Alex[ by question ]Hangman of workforce impacted Yes. This areas on company is be what Jim. My the

Cheryl Blanchard

in are Thanks Cheryl. main and the R&D impacted SG&A, that us. is Yes, primarily marketing. for this are being Alex, joining areas

Michael Levitz

pretty between from annualized million split R&D And standpoint, evenly spending $XX the savings in and SG&A. a is

Unknown Analyst

And I the for do some so changes it. the know distributors preservation Got you to any And additional you with changes discussed happy XXXX? far? joint business. we've of the for expect Are results

Cheryl Blanchard

question. Yes. Great

a We're continue what from starting really top forward of ongoing execution, distributors to we've is on feedback. pull will from acceleration really and great market to very biocomposite significant a the optimization. that clinicians do commercial to gain from is for product obviously and that additional real with continue especially Integrity access I We we as tell and terms feel In them now launched. you continue RevoMotion gain well. got our starting move X-Twist, to with

we continuing that those working what with really down forward. to and think we're doubling to our strong So relative on strength I see optimize distributors going

Unknown Analyst

with do Great. Cingal? And from last regarding me. you meeting question next the When FDA expect the

Cheryl Blanchard

Yes.

We move nonclinical all year, The with they're we have and doing require had can We C productive, can to data, is dialogue what know. that with last ongoing tests we're meeting clarity to those we for ongoing obtain our as Type so you dialogue FDA. the with on remaining certainty. going ahead

is message the we dialogue rest the can, there assured think that I is ongoing. we're all and So doing

Operator

next line Sellers comes George from question the Stephens Inc. from Your of

George Sellers

about you have some additional trained Maybe to XXXX? should the far? start, surgeons also, surgeons And think give I'm progression color if then just in the how we could many curious throughout of contributed RevoMotion of And you quarter? trained on both sort how thus

Cheryl Blanchard

the George, terms across training, products tend haven't specifically Yes, broken out a thanks question. for product because training of within training train by session. to we we in

activities. trained year talked in face-to-face we last So have XXX surgeons training what we about about is

as continue that. on a be products, new around . talked we'll training our will with So and we've part focused RevoMotion of about,

George Sellers

And gears shifting helpful. That's the a maybe Okay. little guidance. bit then to

the AIM that versus AAOS launched going from the about RevoMotion, out and How items with ProPass. rotator -- HA that if devices? are that like year break think curious your we the should those you Just recently about legacy system to this patch growth be some talked new could from as you've contribution the some well devices of launched the you cuff as the of

Michael Levitz

Mike. it's George,

the terms products. new expectations growth In of

where is seeing months it's to coming biocomposite release. quarters, full momentum and we X-Twist XXXX a quarter, the are going be have contributing market We few be because end pleased growing been RevoMotion, in now will release in the here for with launched a at a for this market out a are now that now few we the contributor we that X-Twist, also year. have that growth the just in limited big

of that So growth. -- think products, drivers growth That the when the about in growth primary new described is we've mature and in new is Integrity, we X-Twist products and lot growth -- more RevoMotion of more not the preservation, a in products, growth the that are joint mature that really these offsetting the there the products. in isn't the exciting that seeing you

with very seeing. we're that with lot learning in our are XXXX. a lot terms We're to acceleration and that distribution in we're we to market taking of So as pleased those of the see bring to these commercialize acceleration the to ability a force our continue action

Cheryl Blanchard

and in greater accelerate And pull release full add the we when would in regenerative a we're full on we a back business I same very We're high manipulatable feeling able release, that the to on scope and even market the a second strength poll. And that the had get had in see took where market on with be that was we've version and to to opportunity the capacity are of do to regenerative focused half product integrity. that we at a track in everything regenerative that and on that that of really feeling of excited that thinner in to we year, talked intentionally that real a are really that product. we're system And holding integrity, wet approach. time, availability limited of really further that Yes. patch it because were about very delivering around mentioned we

George Sellers

if helpful. Okay. squeeze really Got I in it. then That's one last can one, it And maybe here.

longer-term just constructive give On med as discussed and lower you're you and what the some sort on devices they some sports us Arthrosurface that maybe said you I a the you of on your Can impairment to present? about think related products you opportunity that believe the less charge color outlook? longer-term specific business. additional changed then

Michael Levitz

recorded reassessment there Sure, charge fourth of George. based Mike. trajectory impairment the coming out This on quarter. the is We the the

the is quarter always fourth number quarter the We know, in of orthopedics. you biggest new a As had products.

the the key XXXX wanted more so how mature to question products in doing. acceleration products And what's new see that we to compared of the are is

were than mature And what the more we is more challenged had be. products they and would that wanted them to found that hope be we

drove the a before when revisiting of asset. back assets originally so at XXXX just valuation beginning the the acquisitions The And of valued that of the COVID. happened were

went that impairment revaluation we to through so process, what led that's charge. the And once

So early seeing we days, richer products. products, slower these nice the offset of more are not growth expected enough in even new to growth but than the

we And focus on where in Cheryl such taken as bottom greatest so we've that's that's line to to we're part those why able significant have And in down talked of drive about And driving terms we focus. why spending areas of the into here opportunity. go growth that's XXXX. the what

Operator

of next Your question comes Research. from the line Mike Petusky from Barrington

Michael Petusky

love answered to of way, the other XX%. get you've XX% this I the like about feel and I'd Mike, question

business of have flat the or aside rest assume in of do three business rest guidance, Or the for sort performance at in legacy the your grow set new the will the you does the JPR? in some 'XX? that you lower you end If JPR, of part all products your at guys worse hope of of

Michael Levitz

the guidance the really on our reflected is impact have products. in yes, spend. Mike, some new an have driven that the products. in new reduce we key for is more for drivers is range And to our sales. reflected contribution XXXX There our taken are that's is XXXX What's to growth action can mature but the by guidance products,

the that than said, watching over Cheryl we're growth a faster prioritizing line just as the we're so And because bottom top line.

mature And products. around the specifically, in they're and preservation more joint

going and watch to something to that's balance. so continue we're And

Michael Petusky

said. just that understood you what So Mike, I make I want to sure

to from You the said legacy contribution. Are meaning more you saying there in flat contribution growth, than JPR is 'XX?

Michael Levitz

is there contribution. a Mike, Yes,

balancing products, One is in launched new when things here we are about that the the of the the new contribution States. United principally the that of I'm products talk

in So international the launch how we requirements. I'm United can products some as new quickly are the component we But There driver that that to able business don't there's international get products. in an of where question. MDR is because aren't the -- the growth primary variability weighing in the States the just I answered you

Michael Petusky

All I explain but know and I -- right. I tried And this, want Cheryl, I you've to I forgive think understand. me want to to because make sure just

you Integrity, we're of interest. sort getting "Hey, So say,

be but walk holding the the just the delivering back really is holding terms of just catalyst what back. me of you for We you this continue issue -- what Could product? enthusiastic the sort in through of one talk an we're time sort more way about there again? essentially, . exactly you're Can holding to --

Cheryl Blanchard

Absolutely. limited purposely that in a years technique, product surgeons with, around we our in of the that limited releases some market and I feedback elements I've like each surgical of the get the here, done system, very instrumentation have delivery primarily that. in been group designing to we are them work order mean, of launches surgeons,

want us approach go a want always of patient to With system its specific The from Integrity, is complete. things And build you market, manipulate its before arthroscope regenerative capacity technique strength, a that had will regenerative ease of be we to sure fixation. to from be do great tweaks We its the allow launching new that again, a the terms designing and are a in to very perspective conditions, use, Also great. hearing that make instrumentation. from those are to out in that a make under outcomes. wet we're around around there know surgical clinically. tweaks the And to we perspective, took full that itself instrumentation arthroscopic we going patient a when patch patch to doing the ability

is doing that what And we're right now. so

in on, we have track at to that that been bit implemented. is feeling a have is in build My we'll got do meetings have market this. feedback We're their build the training intentionally group limiting commentary There inventory much so being hands. through surgeons that because product word larger from midway are were and instrumentation that with the for to it inventory chomping pull they're And around that tweaks then of seen limited about the finalized absolutely about with doing the this year. the out. a are minor go we the the like such it. on doing get academy The the we surgeons ready

to tweaks full market then on full inventory are around incorporates we so build and instrumentation those that want just release we do done And make those. the sure that the that

on all and planned, like is of to is track. product as all good, a way sort here. the is it launch it robust normal So It that we do

Michael Petusky

standard I answer you and any you know call had would third you just I the communicated become a of hopes on but that chance that care least quarter the a had that, that mean, way, and at be Integrity curious, shot anecdotal, curious, was had give here genuine to feedback you would, have there roughly physician a is essentially of level or that gotten surgeon any at your it confidence feedback, same I least something? sort mean this have bolster could really in at any Just hey,

Cheryl Blanchard

much think, I that we implant the intend around I time, repeating integrity won't the regenerative aspects developing spent there's the system system. great genuine a activities. near-term product. surgeons technologies And a mentioned the although it highly we repeat, set in from and all is itself love on leveraging that frankly, feedback have used really think I really additional because differentiated for of I great so a I this that pipeline

think fact in XXX late think is that And surgeries over is evidenced is especially done I really -- well the November actually release. since yes, we've in absolutely a answer that which So market a by yes. I that's nice ramp even limited the

Michael Petusky

you But often I'll come conference can these doesn't calls. because jump in talk up -- Cheryl, and one, very just Last it off. about

Just U.S., longer-term this placed sort also hey, longer of needle could can could the term a why think option you Hyalofast matter in for forward? the just company it's going and the in think, mover you it an for opportunities market about be talk as about you as why the

Cheryl Blanchard

absolutely. Yes,

going States. know right publications over get in review process well a now. XX paper is fact, works. We've States. the when likely this that launch and fairly XX-year for is Hyalofast sale the through years for There's United unusual the to published in United First XX on on this product outside a That's product. clinical a been that's it how the foremost, year. have over product And data got you We

already. of a have lot data We clinical

procedure, cartilage of it in of patient and U.S. It's what a defect surgery separate the second We a the in. a the for a through requires off market the stage, so market surgery. sets up the surgeon requires looks to they're to be a very go a the X-stage pull doing two off-the-shelf, a costly. States product is Hyalofast able today surgeries. it also surgery know and available it leader product like sees shelf two United to is is in It's sign in that when single and scope is that going a that to and process use one be rehab

not expense a because we think, is unmet also, really leader, factor. significant today that's the the requires market second of a need surgery, technology another current met and the being There's it

off and but in is we that's exist opportunity so product market United product think current just doesn't there's And States today current the there expansion market the well-established a the a for available the today, with market a leader. shelf that

So Hyalofast on reasons. all very bullish yes, for those of we're

Operator

and Ladies conference your today's call. Thank this you gentlemen, concludes participation. for

now may You disconnect.

Anika Therapeutics (ANIK) 13 Mar 242023 Q4 Earnings call transcript