Call of the Week: Anika Therapeutics

Robert Maltbie |

 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.
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Companies

Symbol Name Price Change % Volume
STZ.B Constellation Brands Inc. 152.36 1.30 0.86 880
ANIK Anika Therapeutics Inc. 49.64 1.50 3.12 129,317

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