Anika Therapeutics (ANIK) is a leader in tissue protection products for human joints, and the company is gaining market share. It has a new product in the FDA’s approval process and is already selling in Europe.
Management is lowering costs with manufacturing consolidation, and we believe that they have a number of exciting product development programs. We’ve initiated coverage on Anika with a BUY rating.
Here are some highlights of the company:
- Anika has developed innovative solutions for osteoarthritis with its Orthovisc and Monovisc products.
- We expect demand for osteoarthritis treatments to grow as the baby boom generation ages and desires to remain active.
- The main products are the only non-avian hyaluronic acid based products approved for injection into the joint. This enables those patients allergic to eggs or poultry to receive appropriate treatment for osteoarthritis.
- Manufacturing consolidation is lowering the company’s cost structure.
- Other hyaluronic acid based products address skin grafts, advanced wound care and surgical issues. A new product for articular cartilage generation is entering clinical trials.
- We forecast earnings growth of 14.0% in 2011 and 16.8% in 2013. We note that core earnings growth is higher. Our 12 – 18 month price target is $18.50.
Disclosures: To read Singular Research’s important disclosures, click here. For the full March 2012 Market Indicator & Strategy Report, and other research reports from Singular Research, click here.
Robert Maltbie
Robert Maltbie Jr., CFA is the Chief Investment Officer and Portfolio Manager at Millennium Asset Management, and Founder of Singular Research. Robert has over 30 years of experience in money management. Manages/advises over $120 million in assets. Millennium is sub advisor for 40 Act Long- Short Equity Fund, which recently ranked in the top 2% of all funds in its category. This fund allows mutual fund investors access to top performing hedge fund expertise with innovative risk management strategies. Millennium is also GP to Argonaut 2000 LP. Fund, A top performing hedge fund with a strong nine-year track record of outperformance vs. most US domestic equity indices with only two down years.
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