Anika Therapeutics jumps on a solid Q2 earnings report

|About: Anika Therapeutics Inc. (ANIK)|By:, SA News Editor

Anika Therapeutics (ANIK +27%) soars after reporting Q2 earnings that easily topped Street estimates late yesterday.

Total revenue rose 6% year over year, spurred by increased viscosupplementation product revenue and particularly strong domestic sales of its Orthovisc joint fluids replacement.

Gross margin improved to 68.5%, from 57.2%, driven by consolidation of its manufacturing facilities, increased operational efficiencies, a more favorable product mix, as well as the elimination of its unprofitable tissue engineering operations since the beginning of 2013.

R&D expenses increased 40.9%, reflecting higher expenses for its Cingal clinical trial and other planned product pipeline initiatives, but SG&A expenses decreased by 17.2% as ongoing cost reduction initiatives helped boost bottom line performance.