ANIK

Jazz Pharmaceuticals JAZZ announced second interim top-line overall survival (OS) results from the phase III HERIZON-GEA-01 study, which evaluated different combination regimens involving its marketed drug, Ziihera (zanidatamab) as a first-line treatment for HER2+ locally advanced or metastatic gastroesophageal adenocarcinoma (GEA). The HERIZON-GEA-01 study evaluated two regimens — Ziihera plus chemotherapy and Ziihera combined with BeOne Medicines’ (formerly BeiGene) PD-1 inhibitor Tevimbra plus chemotherapy — against the current standard of care (SoC) treatment, trastuzumab plus chemotherapy, in the given population. The second interim analysis has now demonstrated that the two-drug regimen of Ziihera plus chemotherapy led to a statistically significant and clinically meaningful improvement in OS versus trastuzumab plus chemotherapy (SoC), strengthening the clinical profile of Ziihera in first-line HER2-positive GEA. Importantly, the OS hazard ratio improved from the first interim analysis, indicating a stronger survival benefit with longer follow-up. The latest results represent an important update to the first interim analysis. In the first interim analysis reported in November 2025, the results had only shown a strong trend toward statistical significance. Management also reported that with longer follow-up, Ziihera plus Tevimbra and chemotherapy resulted in an improvement in the OS hazard ratio compared with the first interim analysis. Jazz said the updated findings further demonstrate a statistically significant, clinically meaningful and durable OS benefit for the three-drug regimen. Shares of Jazz were up 2.5% yesterday following the announcement of the updated OS results. The stock has rallied 47.5% so far this year, compared with the industry’s increase of 9.7%. Image Source: Zacks Investment Research The updated OS results follow the FDA’s recent label expansion of Ziihera as the first-line treatment of adults with HER2-positive unresectable locally advanced or metastatic GEA. Under the expanded indication, Ziihera can be used in combination with chemotherapy, with or without Tevimbra, in this patient population. The approval significantly expands the addressable market for Ziihera beyond its existing use in previously treated HER2-positive biliary tract cancer (BTC). The expanded indication represents a much larger commercial opportunity than Ziihera’s existing BTC indication. GEA encompasses stomach, gastroesophageal junction and esophageal cancers and is the fifth most common cancer globally. Approximately 20% of GEA patients have HER2-positive disease, a subgroup associated with particularly poor outcomes in advanced and metastatic settings. In metastatic disease, the five-year survival rate remains below 10%, highlighting the need for more effective treatment options. The latest findings could help Jazz establish Ziihera-based regimens as an important treatment option in the first-line setting and support the company's efforts to position Ziihera as the preferred HER2-targeted backbone therapy. Jazz plans to present the updated results at a medical meeting in the fourth quarter of 2026 and submit the same to regulatory authorities worldwide. With its approval across HER2-positive disease regardless of PD-L1 status, Ziihera could address a broader patient population than regimens that require PD-L1 expression. Ziihera was added to JAZZ’s portfolio as part of a 2022 licensing agreement with Zymeworks ZYME. Per the agreement, JAZZ has exclusive rights to develop and market Ziihera in all territories except Asia-Pacific territories (where the drug has been licensed to BeOne Medicines). Zymeworks is eligible to receive tiered royalties on sales of the drug. JAZZ is developing the drug in separate late-stage studies across first-line BTC and metastatic breast cancer. Ziihera is being evaluated across multiple clinical studies for the treatment of HER2-positive solid tumors. Jazz Pharmaceuticals PLC price | Jazz Pharmaceuticals PLC Quote Jazz currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Repligen RGEN and Anika Therapeutics ANIK, both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Over the past 60 days, estimates for Repligen’s 2026 earnings per share have risen from $1.99 to $2.06, while estimates for 2027 have increased from $2.57 to $2.61 during the same time. RGEN’s shares have gained 10.5% year to date. Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%. Over the past 60 days, estimates for Anika Therapeutics’ 2026 earnings per share have risen from 41 cents to $1.05, while estimates for 2027 have increased from 46 cents to 95 cents during the same time. ANIK’s shares have surged 117.2% year to date. Anika Therapeutics’ earnings beat estimates in each of the trailing three quarters, with the average surprise being 950.00%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jazz Pharmaceuticals PLC (JAZZ) : Free Stock Analysis Report Repligen Corporation (RGEN) : Free Stock Analysis Report Anika Therapeutics Inc. (ANIK) : Free Stock Analysis Report Zymeworks Inc. (ZYME) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Allogene Therapeutics ALLO incurred a second-quarter 2026 loss of 13 cents per share, narrower than the Zacks Consensus Estimate of a loss of 16 cents. Lower research and development (R&D) spending supported the narrower loss. In the year-ago period, the company reported a loss of 23 cents. Allogene recorded $4.6 million in collaboration revenues from related parties. It did not record any sales in the year-ago period. Shares of Allogene were up in after-market trading yesterday, likely due to the better-than-expected results. Year to date, the stock has risen 51% compared with the industry’s nearly 6% growth. Image Source: Zacks Investment Research R&D expenses were $30.7 million, down 23.5% year over year. In contrast, general and administrative (G&A) expenses rose 45.9% to $20.8 million. Total operating expenses declined 9.3% to $51.6 million. As of June 30, 2026, cash, cash equivalents and investments totaled $423.6 million compared with $266.9 million in the previous quarter. This uptick was due to the completion of a public offering in April that generated gross proceeds of $200.4 million. Based on its June-end liquidity, management expects a cash runway into 2029. The company maintained operating expenses guidance for full-year 2026 at about $225 million, including non-cash stock-based compensation expense of nearly $35 million. Allogene’s main focus is the pivotal phase II ALPHA3 study, which evaluates the lead drug cema-cel as a potential first-line treatment for patients with newly diagnosed large B-cell lymphoma (LBCL) who are likely to relapse and require further therapy. In April, the company reported an interim futility analysis from the study, showing 58.3% MRD negativity at day 45 in patients treated with cema-cel versus 16.7% with observation. Management reported no treatment-related serious adverse events at the cutoff and said most patients were managed on an outpatient basis. The company surpassed its 2026 goal of activating more than 80 ALPHA3 sites about six months early. It now expects approximately 100 sites to be active by year-end, with most in the United States and additional locations in Canada, Australia and South Korea. Despite faster site activation, Allogene still expects to provide an interim analysis on the primary endpoint of event-free survival (EFS) in mid-2027. The ALPHA3 study is expected to randomize about 220 participants, with enrollment anticipated to be completed by year-end 2027. The company is also exploring the potential of allogeneic CAR T cell therapies in autoimmune diseases. It is enrolling patients in the phase I basket study (called RESOLUTION) evaluating ALLO-329 across autoimmune indications, including systemic lupus erythematosus, idiopathic inflammatory myopathies and systemic sclerosis. With enrollment remaining brisk, Allogene expects a clinical and translational data update in the fourth quarter of 2026. Management said the readout should include at least the 20-million, 40-million and 80-million cell-dose cohorts, along with safety, efficacy and translational findings. Allogene currently carries a Zacks Rank #3 (Hold). Allogene Therapeutics, Inc. price | Allogene Therapeutics, Inc. Quote Some better-ranked stocks in the biotech sector are Anika Therapeutics ANIK and Repligen Corporation RGEN, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Over the past 30 days, earnings per share (EPS) estimates for Anika Therapeutics have risen from 41 cents to $1.05 for 2026. Over the same period, EPS estimates have increased from 46 cents to 95 cents for 2027. ANIK shares have skyrocketed 129% year to date. Anika Therapeutics missed on earnings in each of the trailing four quarters, delivering an average surprise of 950%. Over the past 30 days, estimates for Repligen’s 2026 EPS have increased to $2.06 from $1.99. Over the same period, EPS estimates for 2027 have risen from $2.57 to $2.62. RGEN shares have gained 1% so far this year. Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report Repligen Corporation (RGEN) : Free Stock Analysis Report Anika Therapeutics Inc. (ANIK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:30 a.m. ET President and Chief Executive Officer - Stephen D. Griffin Senior Vice President, Chief Accounting Officer, and Treasurer - Ian W. McLeod Executive Director, Corporate Development and Investor Relations - Matthew Hall Matthew Hall: Good morning, and thank you for joining us for Anika Therapeutics' second quarter 2026 conference call and webcast. With me on the call are Steve Griffin, president and chief executive officer and Ian W. McLeod, senior vice president, chief accounting officer, and treasurer. They will present our second quarter 2026 financial results and business highlights. Please take a moment and open the slide presentation and refer to slide 2. Before we begin, please understand that certain statements made during today's call constitute forward-looking statements as defined in the Securities Exchange Act of 1934. These statements are based on our current beliefs and expectations and are subject to certain risks and uncertainties. The company's actual results could differ materially from any anticipated future results, performance, or achievements. We make no obligation to update these statements should future financial data or events occur that differ from the forward-looking statements presented today. Please also see our most recent SEC filings for more information about risks that could affect our performance. In addition, during the call, we may refer to several adjusted or non-GAAP financial measures, which may include adjusted gross margin, adjusted EBITDA, adjusted net income from continuing operations, and adjusted earnings per share from continuing operations, which are used in addition to the results presented in accordance with GAAP financial measures. We believe that non-GAAP measures provide an additional way of viewing aspects of our operations and performance, but when considered with GAAP financial measures and the reconciliation of GAAP measures, they provide an even more complete understanding of our business. A reconciliation of these adjusted non-GAAP financial results to the most comparable GAAP measures is available at the end of the presentation slide deck and in our second quarter 2026 press release. With that context, I will turn the call over to our President and CEO, Steve Griffin, to walk through our performance and discuss our priorities moving forward. Steve? Stephen D. Griffin: Thanks, Matthew. Good morning, everyone, and thank you for joining us. The second quarter marks great progress in our efforts to build a stronger, more profitable Anika. We delivered commercial channel revenue growth, significant gross margin expansion, our highest adjusted EBITDA since 2020, and improved profitability while continuing to invest in our growth initiatives. These results reflect execution against the three strategic priorities I highlighted in my first earnings call in February. Accelerating sustainable revenue growth, driving operational excellence across the organization, and advancing our hyaluronic acid-based innovation pipeline. Our first priority remains accelerating sustainable revenue growth, and the second quarter results reflect progress in that direction. In the second quarter, commercial channel revenue increased 17% to a record level. This was driven by focused execution and broad growth in our international OA pain management and regenerative solutions businesses. The momentum was evident in our international commercial business, where focused execution and portfolio alignment continued to deliver results. CINGAL grew 32% and MONOVISC grew 24% year-over-year. Together contributing $2 million of incremental profitable revenue. The growth we have seen through the first half of the year with CINGAL growing 23% and MONOVISC growing 19%, has contributed more than $3 million of incremental revenue. These results underscore the durability and growing scale of our international OA pain management franchise. We believe this sustained growth also reflects the benefits of the increased focus and alignment across our international business following the portfolio actions completed over the last 18 months. During the quarter, we hosted our international distributor meeting. with more than 35 of our international distributors represented providing an opportunity to align around growth priorities, share best practices, and strengthen commercial execution. As our organization and distribution partners increasingly concentrate their attention on our core portfolio. We are seeing improved engagement, greater market focus, and stronger execution which we believe is contributing to the growth trends we are seeing today. Within regenerative solutions, integrity remains a growth driver. Global surgeries and units sold increased both sequentially and year-over-year, with year-to-date sales up approximately 39% and revenue just under $2 million for the second consecutive quarter. Growth was driven by expanding international demand and continued adoption of the larger sizes introduced late last year, reflecting increased surgeon confidence and broader utilization of the platform across a variety of anatomies and tendon applications. We remain encouraged by the progress of Integrity. The recently launched larger sizes have exceeded our initial expectations, supporting our view that the platform can address a broader range of tendon repair procedures and patient anatomies. We also continue to advance our post-market clinical follow-up study, with enrollment expected to be completed in the coming quarters, further strengthening the clinical evidence supporting the technology and providing the data needed to file in the EU. Internationally, momentum remains positive, with stocking orders outside the U.S. increasing more than 50% in Q2 and June representing the strongest month to date. As product availability expands and surgeon experience grows, we believe Integrity is positioned to support continued adoption across both U.S. and international markets. The strength of our HA-driven regenerative business extends beyond Integrity, Hyalofast performed well during the quarter outside the U.S., contributing to double-digit growth in international regenerative solutions revenue. Its sustained adoption and expanding use across geographies highlight the strength and depth of this regenerative hyaluronic acid-based technology. Together, these drivers continue to enhance the franchise's reach and support sustainable long-term growth. The OEM channel grew 14% year-over-year, driven primarily by favorable order timing across both of our U.S. OA pain management products sold through our partnership with J&J through DePuy Synthes. Within the portfolio, performance was led by MONOVISC unit volumes that exceeded projections for the quarter. Supported by favorable U.S. end-market sales, Monovisc more than offset lower than expected OrthoVisc revenue. While we believe a portion of the quarter's performance benefited from order timing, underlying demand trends remain encouraging. Given our performance through the first half of the year, we are raising our full year OEM revenue guidance, expecting low-single-digit revenue growth. We continue to anticipate quarterly revenue variability, due to customer ordering patterns. The current DePuy Synthes team has driven improved demand and enhanced commercial execution. Their focus on physician outreach, customer support, and franchise development has contributed meaningfully to the momentum we are seeing today. We look forward to continuing to build on that momentum together in the years ahead. While commercial channel execution and our J&J partnership remain important growth drivers, we also continue to focus on opportunities to expand and optimize revenue across our broader OEM product portfolio. We have several long-standing OEM relationships and legacy programs that generate attractive revenue and cash flow. And we continue to evaluate ways to enhance both growth and profitability. While these programs may be smaller individually than our primary growth drivers, collectively they represent an important contributor to shareholder value and are an area where disciplined execution can drive incremental returns. Our second priority strengthening operational discipline and execution has been an increased area of focus and contributed to second quarter financial performance and profitability. Gross margin improved to 65% in the second quarter representing one of the highest levels we have delivered in recent years. This performance reflects progress across manufacturing productivity, operational efficiency, product mix, and disciplined execution throughout the organization. Many of the operational improvements contributing to these results are structural. During the first half of the year, we completed several projects to address manufacturing constraints. On our Monovisc and CINGAL manufacturing line, we completed a capacity expansion project that effectively doubled throughput at a production step that had previously constrained manufacturing output. We also successfully completed a planned upgrade of our OrthoVisc and non-orthopedic manufacturing line, resulting in meaningful improvements in yield, throughput, and production efficiency. These investments strengthen our ability to support future growth while further improving the efficiency and cost structure of our manufacturing operations. Through the first half of the year, we have increased our focus on improving how we can run our core business, and those efforts contributed to our strongest quarterly profitability performance since 2020. We view current performance as evidence that we are building a more efficient, higher-return business and our teams believe we are in the early innings of improving returns. Our focus remains on applying lean principles across the organization, eliminating waste, simplifying processes, and improving productivity. Here in Bedford, we are optimizing our manufacturing operations to increase throughput and maximize facility utilization. We have added targeted headcount to support higher production levels while still increasing gross margin. Enabled by process improvements, waste reduction, and a greater focus on value-added activities. In addition, we continue to make capital investments to enhance manufacturing capabilities, increase efficiency, and support future volume growth. Our manufacturing capabilities are becoming an important competitive advantage, and we believe they can create additional value over time. While we are encouraged by the early progress made to date, we believe opportunities remain to increase throughput through our facility, improve productivity, and deliver higher profitability. Turning to our third priority, advancing our HA-based innovation pipeline, we continue to make progress across our development programs, while building capabilities we believe will strengthen the long-term value of our innovation platform. Our strategy remains focused on leveraging our deep expertise in hyaluronic acid and HYAFF technologies to address unmet needs across OA pain management, and regenerative solutions. Starting with Hyalofast, we remain actively engaged with the FDA as the PMA review process continues. We are working through the agency's deficiency letter, and expect to complete our response in the coming weeks. Based on our recent engagements, the co-primary endpoints of our clinical study are the most important components of the review and could impact the timeline for ultimate product approval. While the timing of an approval remains outside of our control, our confidence in the long-term opportunity for Hyalofast remains unchanged. Importantly, product continues to perform well outside the United States, contributing to double-digit revenue growth in international regenerative solutions revenue during the quarter. Continued adoption across multiple international markets reinforces the clinical value of the product and the strength of our regenerative solutions portfolio. We remain fully committed to bringing Hyalofast to patients in the United States and completing the PMA process. Turning to CINGAL, enrollment in our bioequivalence study continues to progress as planned. As the program advances, the primary focus increasingly shifts to the chemistry manufacturing and controls activities required to support the NDA submission. CINGAL is regulated as a drug combination product, creating a substantially different regulatory and manufacturing framework for hyaluronic acid. As a result, establishing the manufacturing and quality systems necessary to support hyaluronic acid as a drug is a critical component of the program. To support these efforts, we have expanded our CMC capabilities this year and are making targeted investments in manufacturing as a drug to ensure we meet FDA's drug manufacturing requirements. These necessary CMC activities will likely be the final workstream completed before the NDA submission. This investment will also improve manufacturing scale over the coming years. Beyond these later-stage programs, we continue to focus on long-term growth potential to unlock value from our hyaluronic acid and HYAFF platforms. Our regenerative suture and tape program continues to make encouraging early progress, and highlights the versatility of our HYAFF fiber, across soft tissue repair applications. More broadly, we remain focused on identifying and advancing differentiated applications where our biomaterials expertise, can create meaningful clinical and commercial value. With that, I will now turn the call over to Ian to walk through the financial details. Ian W. McLeod: Thanks, Steve. Please refer to slide 5 of the presentation. Before discussing the quarter in detail, I will take a moment to call out our first half performance. Year-to-date, revenue increased 14% to $62 million driven by growth in our commercial and OEM channels. Notably, international revenue reached a record $23 million, up 17% year-over-year. This growth translated into improved financial performance. First half gross margin expanded more than 1,400 basis points to 65%. That led to $11 million in adjusted EBITDA, as compared to a breakeven start last year. The actions taken this year are translating into measurable improvements in both growth and profitability. Now turning to the quarter. Anika generated $32.6 million in total revenue, an increase of 16% year-over-year. Commercial revenue grew 17% to $13.9 million driven by international execution, momentum in Integrity, and growth across both our OA pain management and regenerative solutions portfolios. International revenue reached a record $12.6 million, increasing 22% year-over-year reflecting broad-based growth across markets and product categories. This performance was driven by market share gains in OA pain management and increasing contributions from our regenerative solutions products. Notably, our growth comes from multiple products, geographies and channels, reflecting the broadening reach of our business. The OEM channel grew 14% year-over-year, supported by MONOVISC demand and favorable order timing. While quarterly OEM performance can vary, the strength of the first half supports our increased full year outlook. Assuming a relatively even revenue contribution between the third and fourth quarters, our outlook implies strong year-over-year growth in the third quarter, and moderate growth in the fourth quarter. As a result of a difficult comparison with a strong Q4 in 2025, gross margin expanded to 65%, compared to 51% in the prior year. This improvement reflects higher manufacturing productivity, increased throughput, favorable product mix, and the continued impact of our operational excellence initiatives. These results demonstrate the operating leverage inherent in our business model as we continue to improve execution, across our manufacturing operations. Turning to operating expenses, total operating expenses were $18.3 million compared to $18.5 million in the prior year period. Excluding approximately $800,000 of one-time severance costs, adjusted operating expenses were approximately $17.5 million, down 6% year-over-year. G&A expenses excluding severance declined 30% in the quarter reflecting increased organizational focus, disciplined spending, and the benefits of the actions we have taken to improve operating efficiencies across the company. R&D expense was $7.3 million compared to $6.3 million in the prior period, reflecting investments in our highest-priority pipeline programs. This includes advancement of CINGAL, where enrollment in our bioequivalence study is progressing as planned, as well as expanded CMC activities required to support NDA submission. Adjusted EBITDA for the quarter was $7.1 million, representing an adjusted EBITDA margin of 22%, our strongest quarterly profitability performance since 2020. We ended the quarter with $38.4 million in cash and cash equivalents and no debt. This provides financial flexibility as we continue investing in our strategic priorities while maintaining a disciplined approach to capital allocation. Consistent with that approach, we recently extended our credit facility. The amended agreement maintains substantially similar terms while reducing the overall facility's size to better align with our current needs. The facility includes a $50 million revolving commitment along with an accordion feature that provides the flexibility to request up to an additional $50 million of borrowing capacity, for a total potential commitment of $100 million. We believe this structure provides ample liquidity and financial flexibility to support our strategic priorities while maintaining an efficient capital structure. As part of our disciplined approach to capital allocation, we completed our previously announced $15 million share repurchase program during the first half of the year. Combined with actions we have taken to reduce equity-based compensation, shares outstanding declined to approximately 13.3 million shares, representing the lowest share count in more than 50 years. Stock-based compensation expense declined 28% year-over-year in the second quarter, reducing dilution and allowing a greater portion of value created by the business to accrue to shareholders. Taken together, these actions reflect our focus on disciplined capital allocation, operational efficiency, and driving value on a per-share basis. Turning to our outlook, based on our first half performance, commercial momentum, favorable OEM revenue trends and improving profitability, we are raising our full year 2026 guidance. We now expect OEM channel revenue growth of 0% to 5% compared to our previous expectation of down 5% to flat. For the commercial channel, we now expect 12% to 18% growth, compared to our prior outlook of 10% to 20%. This narrowed outlook is supported by Integrity adoption, sustained international OA pain management growth, and ongoing strength across our regenerative portfolio. As a result, total company revenue guidance now includes increased growth of 5% to 10%, from 1% to 9% previously. Additionally, we are raising our adjusted EBITDA margin guidance to 13% to 17%, compared to our prior expectation of 5% to 10%. This increase reflects the operating leverage across the business. Profitability in the second half will be modestly lower than the first half, due to OEM order timing. Lastly, impacting our 2027 revenue forecast, we are adopting a new revenue guidance practice to include only revenue from products that have received regulatory approval or clearance. Our outlook now excludes the previously implied $3 million of Hyalofast sales in the U.S. Despite this change, total company revenue is expected to be between 0% and 5% growth in 2027. With that, I will turn the call back over to Steve. Stephen D. Griffin: Thanks, Ian. Before we open the call for questions, I would like to leave you with a few final thoughts. The second quarter reflects solid progress on our strategic priorities. We delivered commercial channel revenue growth, expanded gross margins, improved profitability, advanced our pipeline, and raised our full year outlook. Just as importantly, we see multiple opportunities ahead to strengthen and grow the business. An important contributor to this progress is the culture we are building through our lean transformation. By empowering teams closest to the work to solve problems, and improve processes every day, we are becoming a more efficient, agile, and accountable organization. Finally, to the many employees listening in on today's call, I want to thank you for your commitment, perseverance, and for driving the positive changes taking place here at Anika. Your contributions and hard work are making these changes possible. I also want to thank our distributor partners whose dedication helps bring products to our patients around the world and to the patients who place their trust in our therapies every day. Looking ahead, our priorities remain driving sustainable growth, improving profitability, and creating shareholder value. With that, operator, let's now open the line for questions. Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press *2. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. And your first question comes from Anderson Schock from B. Riley Securities. Please go ahead. Anderson Schock: Congrats on the strong quarter. So first, I mean, strong first half for OEM revenue and you have raised full year guidance for growth in this channel. However, the guidance does imply a pretty meaningful sequential step down in the back half. Is this mainly a reversal of first half order timing? Or does it reflect visibility into the second half pricing or volume? Stephen D. Griffin: Appreciate the question, Anderson. I would say we did note in our prepared remarks that there is a little bit of favorability, probably between $1 million and $2 million, just due to order timing in the second quarter. That does drive some of that sequential step down. The other element, when you take a look at last year, and I know Ian noted it in his comments is fourth quarter was very strong in last year's quarterly split. And so, you know, we would expect to see some level of decline related to that. But broadly speaking, when we talk about the OEM channel, you know, for a while now, almost two years, we have been talking about it being flat or modestly lower. And we are raising our guidance now to imply that it is actually going to grow year-over-year. We are really pleased with the performance in the end-market from a product perspective here in the U.S. that has helped to support that. Pricing always remains volatile quarter to quarter. But underlying it, when we add it all together, revenue overall is expected to grow, which is a nice change of pace. Anderson Schock: Okay. Got it. And then gross margin, this is now the third quarter above 60%, improving sequentially. What I guess, what are the main drivers here, and how sustainable are these levels? Should we view this as the new norm? Stephen D. Griffin: I would say in short, yes. Think the mid-60s is where you could expect us to operate at. You know, the main drivers that you asked about, I noted in my remarks about the lean transformation. I mean, lean is all about eliminating waste and driving throughput and productivity. We have been able to increase our output without increasing our operating expenses. We have been able to improve our yields. And then I noted there have been a number of projects that our teams have worked to implement in our manufacturing operations that have benefited in terms of how we make our products. So we are really, really proud of that work. And I think, you know, this represents a really important step for us. As you noted, third consecutive quarter of a mid-60s gross margin and something that I think we, you know, will look to hold ourselves accountable to. The other element that I would note though is you know, we are really still very much so in the early innings of what we are looking to accomplish. So when we think about the number of projects that we have on deck to go execute across our operations, you know, we do see multiple opportunities to continue to create value. We are going to continue to invest in the manufacturing side of the business. Anderson Schock: Okay. Got it. Thank you. And then on CINGAL, can you give us an update on the bioequivalence study enrollment? Does this current pace still support completion inside 2026? Stephen D. Griffin: In short, yeah. I would say the bioequivalence study is going as we would have expected. Enrollment remains on track, and we did historically note that we would expect it to be completed in and around year-end, and there has been no change to our expectations associated with that. So it is a small study. It is not something that I have concern around at this point. But enrollment continues. Anderson Schock: Okay. Got it. Thank you for taking our questions. Stephen D. Griffin: Thank you. Operator: And your last question comes from Michael Petusky from Barrington Research. Please go ahead. Michael Petusky: Hi. Good morning. So, Steve, I just want to I guess, drill down on your commentary around the sustainability of gross margin in the mid-60s. Obviously, the first couple of quarters here, you have had the benefit of probably some decent favorable mix, you know, with OEM and then, you know, on the other side, you have you know, you have put in, you know, some good improvements in terms of manufacturing productivity. And so I just want to make sure, just in terms of the second half, I mean, you presumably will not have that kind of favorable tailwind in terms of orders in OEM and I just want to make sure that sort of the, I guess, the productivity improvements on manufacturing sort of fill that gap. And just want to drill down and make sure you are saying what I think you are saying. Thanks. Stephen D. Griffin: Yeah. I appreciate that first question, Mike. I would say, you know, we have started the year at 64% to 65%. I mean, gross margin is never going to be in a straight linear line, as you know. So there is always some level of volatility. But implied in our guidance is that we will maintain sort of that 64% level. There is an element of mix that has to do with how gross margin plays out from a business perspective. But not in a way that is more material than the overall impact of the projects that we have been able to implement. The gains that we have been able to drive from improved yields and better throughput will start to, you know, continue to flow through. So what you heard me say is accurate is that second half of the year, we expect to see sort of that 64% range. And we will stand behind it. Michael Petusky: Great. Just in terms of, you know, the communication between you guys and your U.S. Distributor for MonoVisc, OrthoVisc, I mean, what is your expectation in terms of pricing over the next, say, six to 12 months? I mean, is there anything you can sort of speak to there in terms of your expectation of, I mean, moderate declines, more than moderate give-ups there. I mean can you speak to that at all? Thanks. Stephen D. Griffin: Yeah. We maintain very close communications and regular dialogue with J&J and DePuy Synthes. And I would say our expectations for the full year was always that there would be some element of price erosion offset by volume. And I would say the beneficial sort of results so far through the first half of the year and also what is implied in our guidance is that pricing will continue to be a headwind, but volume will more than offset it. And that is what we have seen thus far. So I think the modest decline in pricing that you noted is probably a fair representation of what we would expect to see. In the coming months and quarters. And as it relates to longer-term, I mean, I think there is always going to be that trade-off between price and volume. And I think at this point, they are for the year, they are probably going to be offsetting each other to the point where we will grow, overall from a revenue perspective driven by higher volume. And we will expect to see some decline from an OrthoVisc perspective. And, we have not given, you know, much longer-term guidance beyond that. But I think the pricing headwind in that dynamic that has always been in place here in the U.S. market will continue. As we look to drive volume. Michael Petusky: Great. Just a couple more. In terms of what you guys have been able to do, it feels like you guys have gotten meaningful things done in terms of your internal processes there. And I assume that you know, like much every other company, go after the low-hanging fruit, the things that are easiest to accomplish first. And I am just curious, I mean, is there more juice to be squeezed here? I mean, do you see meaningful opportunities to continue to sort of improve the way you guys do things that presumably can support continued margin progress? Thanks. Stephen D. Griffin: Yeah. I think it is a good question, and I would I am going to break apart my answer in kind of two steps. The first one is we did institute a very sizable restructuring on the G&A side earlier this year. that has resulted in a 30% reduction in G&A in the quarter and, as you know, a 28% reduction in stock-based comp. So from a structural change perspective, you know, there is nothing further. But as it relates to the operating expenses of the business, when we think about sort of manufacturing operations, I still think that there is a very long way to go. We are very much so in the early innings of this lean transformation. Those will not play out over 90 days. They take years. It is a playbook that is been developed by, you know, many other companies. But when deploying this lean transformation, you are really looking for both daily improvement in operations, but also sort of breakthrough projects that can impact our business over a longer time horizon, that being years. We are working on both of those things simultaneously. So I think we are just very much so in the early innings of the manufacturing improvements that we are looking to drive. But I think in terms of the low-hanging fruit that you referenced from a G&A perspective, I think those are, you know, mostly behind us. Michael Petusky: Okay. Great. And then just last one. So, Steve, and maybe asking you to put your CFO cap back on. Obviously, you guys have moved the needle across a lot of metrics, you know, you know, over a very short period of time. The one metric that has not sort of come along at least over the past couple of quarters is the cash generation. I guess I just wonder, obviously, you have a strong balance sheet. You do not need necessarily to generate cash in the near-term. But I am just curious how you think about cash generation moving forward and maybe timing for that coming alongside some of the other improvements you guys have been able to, achieve? Thanks. Stephen D. Griffin: Yeah. I would say it is definitely an area of focus of mine and Ian's and our teams. I think the reason for why you see a little bit of a lag from a cash flow perspective is we did see a larger amount of orders go out during the June time period. So AR is a little higher than normal. And we do not really ever have an AR issue in this business. So it is more so from a timing perspective, you would not expect to see some of that cash flow convert until the second half of the year. We do typically see a difficult start to the year from a cash flow timing perspective. That is just the seasonality effect of this business. And a stronger end of the year. So we would expect that trend to continue such that we are driving for positive free cash flow the second half of the year. I would say the other area that we have been very conscious about is investing in inventory to support our manufacturing operations. Having the appropriate levels of safety stock to enable our operations to run at the pace that they are running now is key. And that is something that we pay very close attention to and make decisions around very carefully, but have been a conscious decision that we have made. It is absolutely an expectation of ours that over time, we generate stronger free cash flow and probably more of a conversation for 2027 and beyond. Michael Petusky: Great. Great. Thank you. Thank you very much. Appreciate it. Stephen D. Griffin: Yeah. Thank you. Operator: And there are no further questions at this time. Mr. Steve Griffin, you may continue. Stephen D. Griffin: Great. Thank you, everybody, for listening in on today's call, and we look forward to speaking to you after the coming quarter. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you very much for your participation. You may now disconnect. Have a great day. Before you buy stock in Anika Therapeutics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Anika Therapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Anika (ANIK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Commercial Channel Revenue Increased 17% to a Record $13.9 Million Delivered $3.3 Million of Net Income, 65% Gross Margin, and $7.1 Million of Adjusted EBITDA, Highest Since 2020 Raising Full-Year 2026 Financial Guidance and Revising 2027 Revenue Forecast BEDFORD, Mass., July 29, 2026 (GLOBE NEWSWIRE) -- Anika Therapeutics, Inc. (Nasdaq: ANIK), a global leader in the osteoarthritis ("OA") pain management and regenerative solutions spaces focused on early-intervention orthopedics, today announced financial results for the second quarter of 2026. Total revenue for the second quarter was $32.6 million, compared to $28.2 million in the prior-year period. Performance was driven by record Commercial Channel revenue of $13.9 million, representing organic growth of 17% year-over-year, and continued strength in the OEM Channel supported by favorable US Monovisc and Orthovisc sales. Gross profit for the second quarter was $21.2 million, compared to $14.4 million in the prior-year period. Gross margin expanded to 65%, reflecting higher sales volume, increased manufacturing production and improved sales mix. Total operating expenses were $18.3 million, compared to $18.5 million in the prior-year period. Operating expense performance reflected continued cost discipline across the business while maintaining targeted investments to support commercial growth and strategic development programs. Excluding approximately $0.8 million of one-time severance-related expenses, adjusted operating expenses were $17.5 million, representing a decline of 6% versus the prior-year period. Net income was $3.3 million for the second quarter, representing a 10% margin. Adjusted EBITDA was $7.1 million, representing a 22% Adjusted EBITDA margin reflecting continued benefits from commercial growth, gross margin expansion, and disciplined expense management. "Our second quarter results mark a positive step forward in improving the performance of our business. We achieved record Commercial Channel revenue, substantial gross margin expansion, and our highest adjusted EBITDA since 2020. The actions we initiated earlier this year are delivering early gains as we continue to drive operational excellence throughout the Company. Additionally, our growth has diversified across channels and geographies, highlighted by a record quarter of international revenue.” said Steve Griffin, President and Chief Executive Officer. “Our OEM business continues to perform well, supported by stronger transfer unit volumes driven by J&J DePuy Synthes, order timing across both the Monovisc and Orthovisc product lines, favorable U.S. Monovisc end market sales, and continued international growth. These drivers increased production, throughput and manufacturing yields, resulting in meaningful gross margin expansion and operating leverage. Combined with disciplined expense management, a 20% reduction in G&A expenses (or 30% excluding one-time severance-related charges), and lower stock-based compensation expense, these improvements are translating into meaningful profitability gains. Given our first-half performance, we are raising our full-year financial outlook. Most notably, we are raising our adjusted EBITDA margin outlook to 13%-17%, driven by improved operating leverage. Our improved outlook is supported by favorable OEM sales trends, continued Commercial Channel growth, operational improvements, and disciplined cost management. While we expect some moderation in revenue and profitability during the second half relative to the strong first half, reflecting the timing of certain OEM orders, we remain encouraged by the underlying trends in the business and our ability to deliver improved full-year performance. We are still early in our company-wide transformation, yet the results achieved in the first half reinforce that our strategy is working and that disciplined execution against our mission is creating sustainable value. As we continue to advance toward filing the Cingal New Drug Application (“NDA”) we’re making steady progress on the bioequivalence study for Triamcinolone Hexacetonide and are accelerating the necessary Chemistry, Manufacturing and Controls (“CMC”), activities required to file Cingal as a drug-drug combination product. Additionally, we remain actively engaged with the U.S. Food and Drug Administration (“FDA”) on Hyalofast, with discussions focusing primarily on the co-primary clinical endpoints within the Premarket Approval (“PMA”) submission. Given the timing uncertainty that remains in our regulatory review process, particularly as our discussions with the FDA on Hyalofast evolve, we are adopting a new revenue guidance practice. Going forward, our forecast will only include revenue from products that have received regulatory approval or clearance. As a result, our 2027 Commercial Channel revenue guidance no longer includes revenue associated with Hyalofast.” Second Quarter 2026 Business Highlights and Updates Strong first-half execution drove record revenue performance, significant gross margin expansion, and a raise to full-year revenue and EBITDA guidance. Commercial Channel revenue increased 17% year-over-year to a record $13.9 million, representing the strongest quarter in Company history. International revenue reached a record $12.6 million, increasing 22% year-over-year and exceeding the prior quarterly record by 5%, reflecting continued strength across key markets and the increasing contribution from Anika's global commercial organization. OEM Channel performance benefited from strong transfer units, favorable order timing and Monovisc volume growth, partially offset by lower Orthovisc sales. Integrity global units increased both sequentially and year-over-year during the second quarter, driven by growing international demand and continued adoption of larger implant shapes and sizes in the US. Year-to-date sales grew 39% year over year. Hyalofast PMA activities continue to advance, with the Company remaining actively engaged with the FDA as it works through the ongoing review process and responses to the previously disclosed deficiency letter. Cingal development remains on track, with bioequivalence study enrollment progressing as planned. Concurrently, the required CMC activities supporting hyaluronic acid as a drug are accelerating in preparation for the NDA submission. Second Quarter 2026 Continuing Operations Financial Summary Revenue: $32.6 million, up 16% year over year Commercial Channel revenue: $13.9 million, up 17% OEM Channel revenue: $18.7 million, up 14% Gross margin: 65% Operating expenses: $18.3 million GAAP income (loss) from continuing operations: $3.3 million, $0.24 per diluted share Adjusted net income from continuing operations¹: $5.9 million, $0.42 per diluted share Adjusted EBITDA¹: $7.1 million Cash and cash equivalents: $38.4 million as of June 30, 2026 ¹See description of non-GAAP financial information contained in this release. Fiscal 2026 Guidance Based on strong first-half operating performance, continued commercial momentum, favorable OEM dynamics, and improved profitability, Anika is raising its full-year 2026 guidance. Updated 2026 Guidance Raising Total Company Revenue Guidance: revenue growth of 5% to 10%, compared to previous guidance of 1% to 9% Adjusted EBITDA margin: 13% to 17%, compared to previous guidance of 5% to 10% Updated 2027 Revenue Guidance Anika has adopted a new revenue guidance practice. Going forward, the Company’s forecast will only include revenue for products that have received regulatory approval or clearance. 2027 Commercial Channel revenue growth: 5% to 15%, compared to previous guidance of 10% to 20% 2027 OEM revenue growth: Unchanged, flat to modestly lower 2027 Total Company revenue: flat to 5% growth Conference Call and Webcast InformationAnika’s management will hold a conference call and webcast to discuss its financial results and business highlights today, Wednesday, July 29, 2026, at 8:30 am ET. The conference call can be accessed by dialing 1-800-717-1738 (toll-free domestic) or 1-646-307-1865 (international) and providing the conference ID number 60388. A live audio webcast will be available in the Investor Relations section of Anika’s website, www.anika.com. A slide presentation with highlights from the conference call will be available in the Investor Relations section of the Anika website. A replay of the webcast will be available on Anika’s website approximately two hours after the completion of the event. About AnikaAnika Therapeutics, Inc. (NASDAQ: ANIK), is the global leader in the design, development, manufacturing, and commercialization of hyaluronic acid innovations. In partnership with clinicians, our sole focus is dedicated to delivering and advancing osteoarthritis pain management and orthopedic regenerative solutions. At our core is a passion to deliver a differentiated portfolio that improves patient outcomes around the world. Anika’s global operations are headquartered outside of Boston, Massachusetts. For more information about Anika, please visit www.anika.com. ANIKA, ANIKA THERAPEUTICS, CINGAL, HYALOFAST, INTEGRITY, MONOVISC, and the Anika logo are trademarks of Anika Therapeutics, Inc. or its subsidiaries or are licensed to Anika Therapeutics, Inc. for its use. Non-GAAP Financial Information1Non-GAAP financial measures should be considered supplemental to, and not a substitute for, the Company’s reported financial results prepared in accordance with GAAP. Furthermore, the Company’s definition of non-GAAP measures may differ from similarly titled measures used by others. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations, Anika strongly encourages investors to review the Company’s consolidated financial statements and publicly filed reports in their entirety. The Company presents these non-GAAP financial measures because it uses them as supplemental measures in internally assessing the Company’s operating performance, and, in the case of Adjusted EBITDA, it is set as a key performance metric to determine executive compensation. The Company also recognizes that these non-GAAP measures are commonly used in determining business performance more broadly and believes that they are helpful to investors, securities analysts, and other interested parties as a measure of comparative operating performance from period to period. Adjusted EBITDA Adjusted EBITDA is defined by the Company as GAAP net income (loss) from continuing operations excluding depreciation and amortization, interest and other income (expense), income taxes, stock-based compensation expense, and non-recurring professional fees and severance costs. Adjusted Net Income (Loss) from Continuing Operations and Adjusted Earnings Per Share (“EPS”) from Continuing OperationsAdjusted net income (loss) is defined by the Company as GAAP net income (loss) from continuing operations, on a tax effected basis, excluding stock-based compensation, severance costs and non-recurring professional fees. Adjusted diluted EPS from continuing operations is defined by the Company as GAAP diluted EPS from continuing operations excluding stock-based compensation, severance costs and non-recurring professional fees, each on a tax effected basis. A reconciliation of adjusted EBITDA to adjusted net income (loss) from continuing operations to net income (loss) from continuing operations and adjusted diluted EPS from continuing operations to diluted EPS from continuing operations, the most directly comparable financial measures calculated and presented in accordance with GAAP, is shown in the tables at the end of this release. The Company has not provided a reconciliation of its forward-looking adjusted EBITDA margin guidance to the most directly comparable GAAP financial measure because it is unable to predict with reasonable certainty the occurrence or amount of items such as stock-based compensation expense, severance costs, non-recurring professional fees and certain other items that may affect GAAP results. The effect of these items could be material, and therefore a reconciliation is not available without unreasonable effort. Forward-Looking Statements This press release may contain 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, concerning the Company's expectations, anticipations, intentions, beliefs or strategies regarding the future which are not statements of historical fact, including statements in the sections titled “Fiscal 2026 Guidance” and “Updated 2027 Revenue Guidance” regarding 2026 and 2027 revenue, adjusted EBITDA and related financial outlook. 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. 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 ability to successfully commence and/or complete clinical trials of its products on a timely basis or at all; (ii) the Company's ability to obtain pre-clinical or clinical data to support, or to timely file domestic and international pre-market approval applications, 510(k) applications, or new drug applications, including the PMA for Hyalofast and the NDA for Cingal; (iii) that the FDA or other regulatory bodies may not approve or clear the Company’s applications, including the Hyalofast PMA because of the failure to achieve the pre-defined primary endpoints or because the FDA may determine that achievement of secondary endpoints and/or post hoc data analyses are not sufficient to support approval; (iv) that such approvals or clearances will not be obtained in a timely manner or without the need for additional clinical trials, other testing or regulatory submissions, as applicable; (v) the Company's research and product development efforts and their relative success, including whether the Company has any meaningful sales of any new products resulting from such efforts; (vi) the cost effectiveness and efficiency of the Company's clinical studies, manufacturing operations, and production planning; (vii) the strength of the economies in which the Company operates or will be operating, as well as the political stability of any of those geographic areas; (viii) future determinations by the Company to allocate resources to products and in directions not presently contemplated; (ix) the Company's ability to successfully commercialize its products, in the U.S. and abroad; (x) the Company's ability to provide an adequate and timely supply of its products to its customers; (xi) the Company's ability to achieve its growth targets; and (xii) the Company's ability to realize anticipated cost savings, operational efficiencies and other benefits from its restructuring actions and strategic transformation initiatives. 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. For Investor Inquiries:Anika Therapeutics, Inc.Matt Hall, 781-457-9554Executive Director, Corporate Development and Investor [email protected]

Interested in Anika Therapeutics Inc.? Here are five stocks we like better. Second-quarter performance strengthened: Revenue rose 16% year over year to $32.6 million, while gross margin expanded to 65% and adjusted EBITDA reached $7.1 million, the company’s strongest quarterly result since 2020. International products drove growth: Cingal and Monovisc sales increased 32% and 24%, respectively, while Integrity year-to-date revenue rose about 39%. Manufacturing upgrades also doubled throughput at a constrained production step and improved yields. Full-year guidance was raised: Anika now expects revenue growth of 5% to 10%, OEM growth of 0% to 5%, and an adjusted EBITDA margin of 13% to 17%; however, pricing pressure and OEM order timing are expected to weigh on second-half profitability. Anika Therapeutics (NASDAQ:ANIK) reported higher second-quarter revenue, expanded gross margin and its strongest adjusted EBITDA performance since 2020, as international commercial growth and manufacturing improvements supported profitability. Total revenue rose 16% year over year to $32.6 million in the second quarter of 2026. Commercial revenue increased 17% to $13.9 million, while international revenue reached a record $12.6 million, up 22% from the prior-year period. OEM revenue grew 14%, helped by Monovisc demand and favorable order timing. → This Tiny AI Supplier Could Be More Important Than the Chipmakers “The second quarter marked great progress in our efforts to build a stronger, more profitable Anika,” President and CEO Steve Griffin said. He cited commercial-channel growth, gross-margin expansion and continued investment in growth initiatives. Griffin said international osteoarthritis pain-management sales were a major contributor to the quarter. Cingal revenue rose 32% year over year and Monovisc revenue increased 24%, together adding approximately $2 million of incremental profitable revenue during the period. Through the first half, Cingal grew 23% and Monovisc grew 19%, contributing more than $3 million in incremental revenue, according to the company. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Anika attributed the momentum in part to greater focus on its core hyaluronic acid portfolio following portfolio actions undertaken during the past 18 months. The company also held an international distributor meeting during the quarter that included more than 35 distributors. In regenerative solutions, the company said Integrity remained a growth driver. Year-to-date sales were up about 39%, with quarterly revenue just under $2 million for the second consecutive quarter. Anika said global surgeries and units sold increased sequentially and from a year earlier, supported by international demand and adoption of larger product sizes introduced late in 2025. → Innovative ETF Strategies That Are Paying Off This Summer Stocking orders for Integrity outside the U.S. increased more than 50% in the second quarter, with June representing the product’s strongest month to date, Griffin said. The company expects to complete enrollment in its Integrity post-market clinical follow-up study in coming quarters, which it said would provide data needed for a European Union filing. Hyalofast also contributed to double-digit growth in international regenerative-solutions revenue, management said. Gross margin expanded to 65% from 51% in the year-earlier quarter. Senior Vice President, Chief Accounting Officer and Treasurer Ian McLeod said the improvement reflected manufacturing productivity, higher throughput, favorable product mix and operational-excellence initiatives. Adjusted EBITDA was $7.1 million, or a 22% margin, representing the company’s strongest quarterly profitability result since 2020. Total operating expenses were $18.3 million, compared with $18.5 million a year earlier. Excluding approximately $800,000 in one-time severance costs, adjusted operating expenses declined 6% to about $17.5 million. Research and development expense increased to $7.3 million from $6.3 million, reflecting investments in Cingal and chemistry, manufacturing and controls activities needed to support its planned new drug application submission. Anika completed manufacturing projects during the first half that doubled throughput at a previously constrained step on its Monovisc and Cingal production line. It also completed an upgrade to its Orthovisc and non-orthopedic manufacturing line, which management said improved yield, throughput and efficiency. During the question-and-answer session, Griffin said management expects gross margin to remain around the mid-60% range, while noting that margins will not move in a straight line each quarter. He said improved yields and throughput are expected to continue benefiting results, despite potential changes in product mix. Anika raised its full-year OEM channel outlook to growth of 0% to 5%, compared with its previous forecast of a decline of 5% to flat. Management said Monovisc unit volumes exceeded expectations during the quarter and more than offset lower-than-expected Orthovisc revenue. Griffin said about $1 million to $2 million of second-quarter OEM performance benefited from order timing. He also noted that the company expects a more difficult comparison in the fourth quarter because OEM revenue was strong in the same period of 2025. The company’s U.S. OA pain-management products are sold through its partnership with J&J DePuy Synthes. Griffin said pricing is expected to remain a headwind over the coming months and quarters, but higher volume is expected to more than offset modest pricing declines for Monovisc. He said Anika expects Orthovisc revenue to decline. For Hyalofast, Anika said it remains engaged with the U.S. Food and Drug Administration during the product’s premarket approval review. The company expects to submit its response to an FDA deficiency letter in the coming weeks. Griffin said the clinical study’s co-primary endpoints are the most important elements of the review and could affect the timing of an approval. The company said enrollment in Cingal’s bioequivalent study remains on track for completion around year-end. Management said the final work stream before an NDA submission will likely be the development of the necessary chemistry, manufacturing and controls systems for hyaluronic acid as a drug. Anika raised its full-year outlook as follows: Total company revenue growth of 5% to 10%, up from prior guidance of 1% to 9%. Commercial-channel revenue growth of 12% to 18%, compared with prior guidance of 10% to 20%. OEM revenue growth of 0% to 5%, compared with prior expectations of a 5% decline to flat performance. Adjusted EBITDA margin of 13% to 17%, up from prior guidance of 5% to 10%. Management said second-half profitability is expected to be modestly below first-half levels due to OEM order timing. Anika also changed its 2027 guidance practice to include only products that have received regulatory clearance or approval, excluding previously implied U.S. Hyalofast sales of $3 million. Even with that change, the company said it expects total revenue growth of 0% to 5% in 2027. Anika ended the quarter with approximately $38.4 million in cash and cash equivalents and no debt. It extended its credit facility, which includes a $50 million revolving commitment and an option to request up to an additional $50 million in borrowing capacity. The company also completed its previously announced $15 million share-repurchase program during the first half, ending the quarter with approximately 13.3 million shares outstanding. Anika Therapeutics, Inc is a life sciences company specializing in the development and commercialization of hyaluronic acid–based therapeutic products. The company focuses on orthobiologics and medical devices designed to support joint health, tissue repair and surgical applications. Anika's proprietary hyaluronan technology serves as the foundation for products aimed at alleviating pain associated with osteoarthritis and enhancing healing in musculoskeletal and ophthalmic surgeries. The company's core product portfolio includes injectable viscosupplements such as Monovisc® and Orthovisc®, which are indicated for the relief of knee osteoarthritis pain, as well as Euflexxa®, approved for osteoarthritis of the knee in various international markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Anika Therapeutics Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Anika Therapeutics Inc (NASDAQ:ANIK) reported a 17% increase in commercial channel revenue, marking a record level for the company. The company achieved significant gross margin expansion to 65%, one of the highest levels in recent years. International revenue reached a record $12.6 million, increasing 22% year-over-year, driven by broad-based growth across markets and product categories. Adjusted EBITDA for the quarter was $7.1 million, representing an adjusted EBITDA margin of 22%, the strongest quarterly profitability performance since 2020. Anika Therapeutics Inc (NASDAQ:ANIK) raised its full-year 2026 guidance, expecting total company revenue growth of 5% to 10% and adjusted EBITDA margin guidance to 13% to 17%. The company noted potential revenue variability due to customer ordering patterns, which could impact future quarters. There is ongoing pricing pressure in the OEM channel, which could affect future profitability despite volume growth. The timing of regulatory approval for Hyalafast in the U.S. remains uncertain, potentially impacting future revenue projections. Cash generation has lagged behind other metrics, with expectations for stronger free cash flow pushed to the second half of the year. The company faces challenges in maintaining the favorable product mix that contributed to the current gross margin levels. Warning! GuruFocus has detected 4 Warning Sign with ANIK. Is ANIK fairly valued? Test your thesis with our free DCF calculator. Q: The guidance implies a significant sequential step down in OEM revenue for the second half. Is this due to order timing or visibility into second-half pricing or volume? A: Steve Griffin, CEO: The sequential step down is partly due to favorable order timing in the second quarter, which contributed between $1 million and $2 million. Additionally, the fourth quarter of last year was particularly strong, which affects the comparison. Despite this, we are pleased with the overall performance and have raised our guidance to reflect year-over-year growth in the OEM channel. Q: Gross margin has been above 60% for three consecutive quarters. What are the main drivers, and are these levels sustainable? A: Steve Griffin, CEO: Yes, we expect to operate in the mid-60s range. The main drivers include our lean transformation efforts, which focus on eliminating waste and improving productivity. We've increased output without raising operating expenses and improved yields. We are still in the early stages of these improvements and see further opportunities to create value. Q: Can you provide an update on the bioequivalence study enrollment for Singal? Does the current pace support completion within 2026? A: Steve Griffin, CEO: Yes, the bioequivalence study is progressing as expected, and enrollment remains on track to be completed around year-end 2026. There have been no changes to our expectations. Q: Regarding the sustainability of gross margin in the mid-60s, will productivity improvements in manufacturing fill the gap if favorable order timing doesn't continue? A: Steve Griffin, CEO: We started the year with gross margins at 64% and 65%. While there is always some volatility, we expect to maintain around 64% in the second half. The gains from improved yields and throughput will continue to flow through, supporting this level. Q: What are your expectations for pricing over the next 6 to 12 months for Montevis Ortho? A: Steve Griffin, CEO: We maintain close communication with J&J and DePuy Synthes. We expect some price erosion offset by volume increases. Pricing will continue to be a headwind, but volume should more than offset it, leading to overall revenue growth for Monobisk. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record commercial channel revenue growth of 17%, fueled by focused portfolio alignment and strong international demand for CINGAL and MONOVISC. Expanded gross margins to 65% by implementing a lean transformation that doubled throughput on key manufacturing lines and improved production yields. Drove significant regenerative solutions growth through the Integrity platform, specifically via adoption of larger sizes that address a broader range of patient anatomies. Leveraged the J&J partnership to achieve 14% OEM growth, where increased physician outreach and volume gains successfully offset persistent U.S. pricing headwinds. Executed a structural reduction in G&A expenses by 30% and stock-based compensation by 28%, prioritizing value accrual for shareholders over legacy spending. Optimized manufacturing facility utilization in Bedford by adding targeted headcount to support higher production levels while simultaneously reducing waste. Raised full-year 2026 revenue guidance to 5-10% growth, reflecting sustained international momentum and higher-than-anticipated OEM volume performance. Significantly increased adjusted EBITDA margin guidance to 13-17%, assuming structural manufacturing efficiencies will persist despite quarterly revenue variability. Adopted a conservative 2027 revenue guidance policy that excludes $3 million in potential Hyalofast U.S. sales until formal regulatory approval is secured. Anticipates positive free cash flow in the second half of 2026 as record June accounts receivable convert to cash and seasonal headwinds subside. Focusing upcoming R&D investments on Chemistry, Manufacturing, and Controls (CMC) activities to meet the FDA's rigorous drug-combination requirements for CINGAL. Completed a $15 million share repurchase program, resulting in the lowest share count for the company in over 50 years. Recognized $800,000 in one-time severance costs related to the strategic reorganization of the G&A function. Amended the credit facility to $50 million to better align with current operational needs while maintaining a $50 million accordion feature for future flexibility. Acknowledged that the Hyalofast U.S. approval timeline remains uncertain as the FDA review focuses on co-primary clinical study endpoints. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the mid-60s range is the new baseline, driven by structural lean improvements rather than temporary product mix shifts. Stated the company is only in the 'early innings' of manufacturing optimization, with multiple breakthrough projects planned for the coming years. Attributed the second half sequential step-down to a $1 million to $2 million order timing benefit in Q2 and a difficult year-over-year comparison. Expects volume growth to continue offsetting modest price erosion in the U.S. OA pain management market through the DePuy Synthes partnership. Confirmed enrollment remains on track for completion around year-end 2026. Highlighted that CMC drug-manufacturing investments are the final critical workstream required before the formal NDA submission. Attributed the cash lag to high accounts receivable from strong June sales and a conscious decision to increase safety stock inventory. Projected that stronger free cash flow generation will become a more prominent part of the narrative starting in 2027.

MALVERN, Pa., April 30, 2026 (GLOBE NEWSWIRE) -- TELA Bio, Inc. (“TELA Bio”), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions, today announced a comprehensive board refreshment plan designed to support the Company’s next phase of commercial growth and operational excellence. In a unanimous decision by the current seven-member Board of Directors, four respected directors have agreed to step down following the Company’s 2026 Annual Meeting of Stockholders on June 9, 2026 (the “2026 Annual Meeting”), to make room for four new highly accomplished executives with deep expertise in medtech commercialization, financial strategy, venture capital, and corporate turnarounds. This refreshment reflects the Board’s strong commitment to positioning TELA Bio for long-term success. Departing Directors (effective at the conclusion of the 2026 Annual Meeting): Doug Evans, Chairman of the Board Kurt Azarbarzin Vince Burgess Federica O’Brien New Directors (effective immediately after the conclusion of the 2026 Annual Meeting): Joseph Capper will be nominated for election as a Class I director at the 2026 Annual Meeting and is expected to serve as Chair of the Board upon election Guy Nohra has been appointed as a Class II director Joseph Neels has been appointed as a Class III director Paul Thomas has been appointed as a Class III director William Plovanic and Betty Jo Rocchio, who recently joined the Board and whose terms are also expiring, will stand for election and continue to provide valuable continuity. Antony Koblish, CEO, will also remain on the board. “The Board and management team are fully aligned on this important refreshment,” said Antony Koblish, Co-Founder and Chief Executive Officer of TELA Bio. “We are extremely grateful to Doug, Vince, Kurt, and Freddi for their many contributions in building TELA Bio into a commercial-stage company with a strong foundation in soft-tissue reconstruction. Their leadership and dedication have been instrumental.” “We are excited to welcome this outstanding group of four prestigious leaders whose collective experience will be invaluable as we execute our commercial strategy, improve operational efficiency, and advance toward sustainable profitability and value creation for shareholders. This is a pivotal step forward for the Company.” The new directors bring extensive track records in scaling medtech companies, venture capital investment in life sciences, optimizing commercial organizations, and navigating complex financial and strategic transformations, expertise that directly aligns with TELA Bio’s current priorities. Preliminary First Quarter 2026 Revenue The Company also announced preliminary revenue for the first quarter of 2026 of approximately $19.0 million versus previously provided guidance of approximately $18.5 million. Full financial results for the quarter will be reported after the market close on May 12, 2026. The preliminary financial information presented in this press release is based on the Company’s current expectations and may be adjusted as a result of, among other things, the completion of the quarterly review and financial closing procedures. The preliminary financial information reflects management’s estimates and assumptions that are inherently subject to risks and uncertainties. The Company’s actual results may differ from these preliminary results and such differences may be material. The Company undertakes no obligation to update or supplement the information provided in this press release until the Company releases its financial statements for the three months ended March 31, 2026. About the Incoming Directors Joseph Capper A highly experienced and accomplished healthcare executive, Mr. Capper has nearly 30 years of experience in MedTech and Life Sciences leadership roles and a track record of substantial value creation. Mr. Capper has been CEO of MiMedx Group Inc. (NASDAQ: MDXG) since January 2023. Before that, he was CEO of BioTelemetry, Inc. (formerly NASDAQ: BEAT), from 2010 to 2021, guiding the company through a significant turn-around, which culminated in its acquisition by Royal Philips for $2.8 billion. Prior to BioTelemetry, he served as President and CEO of both Home Diagnostics and CCS Medical. Mr. Capper brings a wealth of commercial experience, having held several leadership roles earlier in his career during the decade he spent with Bayer AG. Additionally, he was an officer in the U.S. Navy serving with distinction as a naval aviator. Mr. Capper has served on the board of directors of Anika Therapeutics, Inc. (NASDAQ: ANIK), since May 2024. Mr. Capper received his undergraduate degree in Accounting from West Chester University and an MBA in International Finance from George Washington University. Guido Neels Mr. Neels joined EW Healthcare Partners (“EW”) in 2006 and is an Operating Partner. He currently serves on the Board of Directors of several companies, including Elutia Inc. (NASDAQ: ELUT), Impulse Dynamics, Corvista, Enercon Technologies, and Bioventus Inc. (NASDAQ: BVS). Prior to joining EW, Mr. Neels served as Chief Operating Officer of Guidant Corporation, a world leader in the development of cardiovascular medical products prior to the company’s acquisition for $25 billion. Mr. Neels was responsible for the global operations of Guidant’s four operating units, Cardiac Rhythm Management, Vascular Intervention, Cardiac Surgery, and Endovascular Solutions, including responsibility for worldwide sales operations, corporate communications, corporate marketing, investor relations, and government relations. He also served as Vice President of Global Marketing for Vascular Intervention and as Managing Director for German and Central European operations. Prior to joining Guidant, Mr. Neels held general management, sales, and marketing positions at Eli Lilly in the U.S. and Europe. Mr. Neels previously served on the board of directors of Axogen, Inc. (NASDAQ: AXGN) from August 2015 to June 2025. Mr. Neels holds a Business Engineering degree from the University of Leuven in Belgium and a Master of Business Administration from Stanford University. Guy Nohra Mr. Nohra is a co-founder of Alta Partners, and was also a partner at Burr, Egan, Deleage & Co., which he joined in 1989. Mr. Nohra has been involved in the funding and development of notable medical technology and life science companies including ATS Medical, Cutera, Innerdyne, R2 Technology, deCODE genetics, and Vesica. Previously, Mr. Nohra was Product Manager of Medical Products with Security Pacific Trading Corporation. He was responsible for a multi-million dollar product line and traveled extensively in Korea, Taiwan, Hong Kong, China, and Southeast Asia. Currently, Mr. Nohra serves on the board of directors Bioventus Inc. (NASDAQ: BVS). He previously served on the board of directors of AcelRx Pharmaceuticals (formerly NASDAQ: ACRX), Carbylan Biosurgery (formerly NASDAQ: CBYL), Vertiflex and was the Chairman of the board of directors of USGI Medical and served on the board of directors of the Medical Device Manufacturing Association. He was named to the Forbes “Midas List” of dealmakers in high-tech and life sciences in 2007. In 2016 Mr. Nohra cofounded Alta Life Sciences, a venture fund based in Barcelona. Mr. Nohra has also served as the President of the Silicon Valley chapter of The Leukemia and Lymphoma Society for two terms. He holds a Master of Business Administration from the University of Chicago and a Bachelor of Arts in History from Stanford University. Paul Thomas Mr. Thomas currently serves as the Chief Executive Officer and Co-Founder of Prominex, Inc., a company focused on the development of molecular diagnostic assays for point-of-care infectious disease testing, a position he has held since 2018. Mr. Thomas previously served as the Chief Executive Officer of Roka Bioscience, a molecular diagnostic company focused on pathogen testing, a position he held from 2009 until 2017. Before that, he served as Chairman and Chief Executive Officer of LifeCell Corporation (formerly NASDAQ: LIFC), a regenerative medicine company from 1998 until it was acquired by KCI in 2008 in a transaction valued at $1.8 billion. Mr. Thomas previously held various senior positions, including President of the Pharmaceutical Products Division, during his tenure of 15 years with Ohmeda, a world leader in inhalation anesthetics and acute care pharmaceuticals. Mr. Thomas has served on the board of directors of Axogen Corporation (NASDAQ: AXGN) since 2020. Mr. Thomas received his MBA degree from Columbia University Graduate School of Business and completed his postgraduate studies in Chemistry at the University of Georgia Graduate School of Arts and Science. He received his B.S. degree in Chemistry from St. Michael’s College in Vermont. About TELA Bio, Inc. TELA Bio, Inc. (NASDAQ: TELA) is a commercial-stage medical technology company focused on providing innovative technologies that optimize clinical outcomes by prioritizing the preservation and restoration of the patient’s own anatomy. The Company is committed to providing surgeons with advanced, economically effective soft-tissue reconstruction solutions that leverage the patient’s natural healing response while minimizing long-term exposure to permanent synthetic materials. For more information, visit www.telabio.com. Caution Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements and reflect the current beliefs of TELA Bio’s management. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and other factors that could cause actual results and events to differ materially and adversely from those indicated by such forward-looking statements. These risks and uncertainties are described more fully in the “Risk Factors” section and elsewhere in our filings with the Securities and Exchange Commission and available at www.sec.gov, including in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Any forward-looking statements that we make in this press release speak only as of the date of this press release, and TELA Bio assumes no obligation to update forward-looking statements whether as a result of new information, future events or otherwise after the date of this press release, except as required under applicable law. Investor Contact Louisa Smith [email protected]

Commercial channel growth of 12% was driven by the continued momentum of the Integrity platform and strong international OA pain management performance. Integrity procedures in the U.S. grew 35% year-over-year, with surgeons progressing to their fifth and tenth cases faster than initially expected as clinical confidence builds. Management is targeting the 92% of U.S. rotator cuff procedures that currently do not use augmentation, aiming to expand the market through easier-to-adopt instrumentation and larger patch sizes. Gross margin expansion to 64% reflects the early benefits of a lean manufacturing transformation focused on productivity, throughput, and reducing nonstandard work. OEM channel growth of 14% was primarily attributed to favorable order timing for U.S. OA pain management products and animal health shipments, though quarterly variability is expected to persist. The company is leveraging its HYAFF fiber technology to develop a new regenerative suture and tape program, aiming to tailor mechanical strength and biological response for soft tissue repair. Full year 2026 revenue guidance of $114 million to $122.5 million is maintained, assuming 10% to 20% growth in the commercial channel and flat to slightly down performance in OEM. The Hyalofast PMA review remains on track for a potential fourth-quarter 2027 revenue impact, with management currently preparing responses to an FDA deficiency letter received in Q1. CINGAL bioequivalence study enrollment is proceeding as planned to support a future NDA submission and CMC work for hyaluronic acid as a drug. Adjusted EBITDA is expected to remain between 5% and 10% of revenue, supported by G&A cost reductions and manufacturing improvements, partially offset by lower J&J MedTech pricing. Management expects cash flow to improve as the year progresses following typical seasonal expense dynamics in the first quarter. SG&A expenses included $4.9 million in one-time severance-related costs associated with previously announced organizational restructuring and cost-reduction actions. The company completed its $15 million stock repurchase program as of April 10, 2026, at an average price of $10.76 per share. CINGAL achieved European Union MDR certification with expanded indications for the hip, shoulder, and ankle, supporting broader international clinical versatility. Two directors, Dr. Glenn Larsen and Bill Jellison, are stepping down as the Board evolves to reflect the company's post-divestiture focus. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management noted that while Q1 benefited from favorable product mix and order timing, the results demonstrate the potential of the new lean manufacturing system. Long-term focus remains on reducing cost per unit through productivity gains to create meaningful operating leverage as volumes scale. The company uses internal targets for new surgeon training and closely tracks the speed at which users reach their 10th case to measure the learning curve. Growth will be driven by a combination of 'boots on the ground' training and R&D efforts to make the procedure easier for surgeons to perform in the ASC setting. Management expects to submit responses to the FDA's Hyalofast deficiency letter in the 'coming months' and has built a buffer into the 2027 commercialization timeline. CINGAL bioequivalence study enrollment pace is meeting original expectations, though a specific NDA filing window has not yet been disclosed. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.