This biotech is showing up on the radar of Wall Street. The shares were recently recommended by Motley Fool, TheStreet.com and Forbes. And Singular Research just upgraded them to ‘Buy’. The company beat last quarter’s earnings estimates by $0.17. Our second recommendation today is a Sell.
Anika Therapeutics (ANIK)
From BI Research
Anika Therapeutics (ANIK) has a proprietary technology for developing medical treatments using hyaluronic acid, which we will refer to as HA throughout this report. First, we must explain exactly what HA is and what it is used for.
Hyaluronic acid (HA), or glass acid, is a naturally occurring substance in the human body, found in the joints, eye cavity, and internal defense systems. It functions as a nutrient carrier, along with helping the tissues in retaining water. HA is produced commercially by various processes, including extraction from animal tissues, bacterial production, and in-vitro production. Its major medical applications are viscosupplementation for osteoarthritis, ophthalmic, and dermal fillers. HA is commercially available in the form of single-injection cycle, three-injection cycle, and five-injection cycle HA products. (Research Note: ANIK offers all three options.)
HA is currently approved to treat osteoarthritis, arthritis, and for bone grafts. HA works by acting as a cushion and lubricant in the joints and other tissues. It can be taken by mouth or injected into the affected joint by a healthcare professional. HA is also used in plastic surgery, mainly as a lip filler. HA is also used for healing wounds, burns, skin ulcers, and as a moisturizer.
ANIK’s ORTHOVISC is the leading multiple-injection product. MONOVISC is the number two seller in the single-injection segment. ANIK specializes in HA products for medical purposes, it does not involve itself with the cosmetic or plastic surgery side. ANIK has clobbered earnings estimates eight quarters in a row. ANIK generates a ton of Cash Flow and has a very strong balance sheet. Plus, a new manufacturing facility has lowered costs. ANIK has a strong pipeline of new products and enough Cash to acquire any competitive threat.
Tom Bishop, BI Research, www.biresearch.com, May 18, 2016