Anika Takes Actions to Strengthen Liquidity in Light of COVID-19
April 08 2020 - 4:05PM
Anika Therapeutics, Inc. (NASDAQ: ANIK), a global, integrated joint
preservation and regenerative therapies company with products
leveraging its proprietary hyaluronic acid (“HA”) technology
platform, today provided an update on actions it is taking to
strengthen liquidity in light of the COVID-19 pandemic.
To strengthen its financial position, the Company is drawing
down $50 million on its existing credit facility. Following the
drawdown, the Company will have total liquidity of approximately
$140 million, comprised of cash and investments on hand. The
Company has no debt maturities through the end of 2020, and the
credit facility matures in October 2022. The applicable interest
rate under the credit facility is 2.08% for the $50 million
drawdown. Anika may prepay the credit facility without penalty. The
Company’s credit facility also has a $50 million accordion feature
that the company could potentially access in the future. In
addition, Anika is exploring other sources of funding aimed at
further supporting its liquidity profile, as well as maintaining
business and organizational continuity through the pandemic. In
parallel, the Company has implemented a number of internal
short-term expense controls and is prioritizing business
initiatives to conserve cash flow.
“We are taking these actions to ensure we are best positioned to
navigate this unprecedented situation," said Cheryl Blanchard,
Ph.D., Interim Chief Executive Officer of Anika Therapeutics. "Our
top priority remains protecting the health and safety of our
employees and the patients we serve, and we have implemented
multiple measures across our organization to safeguard our
employees and ensure that we continue providing patients with the
treatments they need. At the same time, we are actively working
with our partners to support the urgent needs of healthcare
providers globally, including donating certain medical supplies we
have on hand. We are containing costs and strengthening our
liquidity profile to ensure availability of product now and as
elective procedures in office-based, surgi-center and operating
room settings return to normal volumes. We are committed to
retaining business continuity, and with our innovative,
life-changing therapies and talented team, we look forward to
continuing to serve patients with meaningful therapies that address
their unmet medical needs through the coming months and for years
to come.”
Anika is closely monitoring the evolving COVID-19 situation and
following guidance from global, national and local health
authorities. The Company has taken a number of steps to safeguard
the health of its employees worldwide, support the needs of
partners, and ensure patients have the treatments they need. In
accordance with guidance issued by the Centers for Disease Control
and Prevention (CDC), the World Health Organization (WHO) and local
health authorities, Anika has directed its employees to work
remotely from home whenever possible. The Company has also
cancelled or postponed all face-to-face meetings and events, and
halted business travel until further notice to help reduce the
spread of the virus. In addition, the Company has implemented
additional protective measures at all production and warehouse
logistics facilities.
The Company continues to monitor its manufacturing and supply
chain resources and is taking measures to ensure product
availability globally. At this time, the Company does not
anticipate disruption to the supply of products for patients due to
COVID-19. The Company has also taken measures to minimize
disruption to ongoing clinical trials and is working with trial
sites and other partners to ensure ongoing clinical trials continue
to be conducted in a safe manner.
About Anika Therapeutics, Inc.
Anika Therapeutics, Inc. (NASDAQ: ANIK) is a global, integrated
joint preservation and regenerative therapies company based in
Bedford, Massachusetts. Anika is committed to delivering therapies
to improve the lives of patients across a continuum of care from
osteoarthritis pain management to joint preservation and
restoration. The Company has over two decades of global expertise
commercializing more than twenty products based on its proprietary
hyaluronic acid (HA) technology platform. For more information
about Anika, please visit www.anikatherapeutics.com.
Forward-Looking Statements
The statements made in the second paragraph, the second and
third sentences of the fifth paragraph of this press release, which
are not statements of historical fact, are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These statements include, but are not limited
to, those relating to the Company’s line of credit and drawdown
thereof, its liquidity position, its exploration of additional
funding sources, its expense controls in light of COVID-19, its
ability to maintain its supply of product, and its ongoing clinical
trials. These statements are based upon the current beliefs and
expectations of the Company’s management and are subject to
significant risks, uncertainties, and other factors, especially in
light of the evolving landscape around the COVID-19 pandemic. The
Company’s actual results could differ materially from any
anticipated future results, performance, or achievements described
in the forward-looking statements as a result of a number of
factors including, but not limited to, (i) the Company’s failure to
realize the anticipated benefits of its recently completed
acquisitions; (ii) unexpected expenditures or assumed liabilities
that may be incurred as a result of these acquisitions; (iii) loss
of key employees or customers following the acquisitions or
otherwise; (iv) unanticipated difficulties in conforming business
practices, including accounting policies, procedures, internal
controls, and financial records of the recently acquired companies;
(v) inability to accurately forecast the performance of the
recently acquired companies resulting in unforeseen adverse effects
on the Company’s operating results; (vi) synergies between the
recently acquired companies and the Company being estimates which
may be materially different from actual results; (vii) the
Company’s ability to obtain pre-clinical or clinical data to
support domestic and international pre-market approval
applications, 510(k) applications, or new drug applications, or to
timely file and receive FDA or other regulatory approvals or
clearances of its products; (viii) that such approvals will not be
obtained in a timely manner or without the need for additional
clinical trials, other testing or regulatory submissions, as
applicable; (ix) the cost effectiveness and efficiency of the
Company’s clinical studies, manufacturing operations, and
production planning; (x) the Company’s ability to successfully
commercialize its products, in the U.S. and abroad; (xi) the
Company’s ability to provide an adequate and timely supply of its
products to its customers; and (xii) the Company’s ability to
achieve its growth targets. Additional factors and risks are
described in the Company’s periodic reports filed with the
Securities and Exchange Commission, and they are available on the
SEC’s website at www.sec.gov. Forward-looking statements are made
based on information available to the Company on the date of this
press release, and the Company assumes no obligation to update the
information contained in this press release.
CONTACT: Anika Therapeutics, Inc. Cheryl
Blanchard, Interim CEO Sylvia Cheung, CFO Tel:
781-457-9000
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