Anika Therapeutics, Inc. (NASDAQ:ANIK) Q4 2023 Earnings Call Transcript

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Mike Petusky: Just curious and I know any answer you give here would be anecdotal, but you had communicated on the third quarter call that you had hopes that Integrity at least had a chance to become a standard of care and I was just curious, have you gotten any physician feedback, surgeon feedback, that essentially would in any way sort of bolster your confidence or at least have it at roughly the same level that, hey, there really is a genuine shot that this could mean something?

Cheryl Blanchard: Oh, I think there is genuine feedback from the surgeons that have used the system that this is a highly differentiated product. In all the aspects I mentioned, and I will not repeat, although I love repeating it because we spent so much time, I think, developing a really great system and, frankly, a really great set of technologies around the Integrity implant itself that we intend on leveraging for additional near-term regenerative pipeline activities. So, yeah, I think the answer is absolutely yes and I think that is evidenced by the fact that we have done well over 100 surgeries since late November, which is a ramp that is really nice, especially, actually, in a limited market release.

Mike Petusky: Last one, and I will jump off. But, Cheryl, could you just talk about, because it does not come up very often in these conference calls, just as you think about the longer-term opportunities for Hyalofast in the U.S., can you just talk about why you think, hey, this also could be sort of a needle mover for the company longer term and its place in the market and why it could matter as an option going forward? Thanks.

Cheryl Blanchard: Yeah, absolutely. First and foremost, this is a product that has been for sale for over 15 years outside the United States. And, in fact, we will have 15-year data published on Hyalofast likely this year. There is a paper that is going through the review process right now. That is fairly unusual when you get to a product launch in the United States. We have got over 40 clinical publications on the product. We know how well it works. We have a lot of clinical data already. We also know what the United States market looks like and the market leader in the U.S. today is a product that is a two-stage procedure. It requires two separate surgeries. It is very costly. It is a product that requires the patient to go through two sets of rehab and sign up for a second surgery.

Hyalofast is going to be a single stage. So off the shelf, one surgery, available when a surgeon is in process of doing a scope and sees a cartilage defect to be able to pull it off the shelf and use it in the surgery that they are in. There is also, we think, a significant unmet need that is not being met today because the current market leader really, the technology requires a second surgery and the expense of it is another factor and so there is a well-established market in the United States today, but we think there is a market expansion opportunity for a product that is available off the shelf that just does not exist today with the current product and the current market leader. So, yes, we are very bullish on Hyalofast for all of those reasons.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.

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