Boston, MA 02/27/2014 (wallstreetpr) – Anika Therapeutics, Inc. (NASDAQ:ANIK) as last seen rising on the stock market, attaining new highs in the process. But all this happened when the stock was supposed to be falling after it reported results that missed expectations. So then, it means investors had their eyes fixed on what the future holds for them in the company than current performance figures
Anika Therapeutics, Inc. (NASDAQ:ANIK) announced that it earned net profit of $6.7 million, reflecting 44 cents per share for the fiscal 2013 fourth quarter. That compared with $4.5 million or 31 cents that it realized in the fourth quarter of 2012. However, analysts had expected that the company would end the quarter with 42 cents per share in net profit.
As regards revenue for the just reported quarter, ANIK generated $21.3 million, falling short of what it generated a year ago at $22.6 million and also missing Wall Street estimate of $21.91 million for the quarter.
Amazingly, shares of Anika Therapeutics, Inc. (NASDAQ:ANIK) were hitting new 52-week high on the browser even in the face of these seemingly weak results. The shares settled at $45.90 each after boosting their value by 33.16 percent in the regular session. The stock also attained a new 52-week high of $52.49 during the previous session.
Explaining stock behavior
Anika Therapeutics, Inc. (NASDAQ:ANIK) was gaining on the browser because of the news that the U.S. Food and Drug Administration had approved its pain and joint drug known as Monovisc. The drug is intended for patients with knee osteoarthritis and related joint mobility issues.
It has been a long time coming for Monovisc. The drug was approved after more than four years since it was first put forward for FDA approval. The drug was rejected on the basis of its application deficiencies. However, the drug had already been approved in the U.K. Canada, Middle East and Asia among other markets.
Marketing of the drug
Anika Therapeutics, Inc. (NASDAQ:ANIK) announced that Deputy Synthes, a subsidiary of Johnson & Johnson (NYSE:JNJ), would market the drug in the U.S. That reflects the previous agreement that the companies signed in 2011. There are about 27 million people with osteoarthritis in the U.S. according to the data from Arthritis Foundation. Anika Therapeutics, Inc. (NASDAQ:ANIK) will receive $5 million in milestone payment from Deputy Synthes.
