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Anika Therapeutics Receives FDA Nod for Bone Repair Therapy

Zacks Equity Research

Anika Therapeutics Inc. ANIK recently obtained 510(k) approval from the U.S. Food and Drug Administration (FDA) for its latest hyaluronic acid (HA) technology-based Bone Repair treatment. This marks the commercial debut of the company’s regenerative portfolio in the United States and is an important milestone for Anika.

This HA-based therapy is used for filling bone voids or defects of the skeletal system. These defects may not always be intrinsic to the bone but may also result from a surgery or traumatic injury.

The filter is composed of a synthetic, biocompatible and osteoconductive bone-graft substitute material. On injecting into a void, it hardens at body temperature. It is then resorbed and replaced by the growth of new bone during the healing process.

Traditionally, bone autograft was the gold standard, but it carried a risk of procedural complications. This prompted a shift toward such synthetic and resorbable modes of treatment.

Anika expects this latest development to be a significant driver in generating revenues in the full continuum of orthopedic care.

Anika Therapeutics Inc. Price and Consensus


Anika Therapeutics Inc. Price and Consensus | Anika Therapeutics Inc. Quote


The Global Orthopedic Devices Market

Per a research conducted by BIS Research, the global orthopedics devices market was valued at $40.20 billion in the year 2016 and is expected to reach $61.02 billion by 2023 at a CAGR of 6.1%. The growing incidents of orthopedic disorders and increasing geriatric population are likely to be the key catalysts. Accordingly, we believe that the latest FDA approval for Anika Therapeutics’ HA-based Bone Repair treatment is perfectly strategic and well timed.

Price Performance

Anika’s shares have rallied 9.6% over the last year compare with the industry’s rally of 2.1%.



Zacks Rank & Key Picks

Anika carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical space are Akari Therapeutics PLC. AKTX and XOMA Corporation XOMA, each sporting a Zacks Rank #1 (Strong Buy), while Integer Holdings Corporation ITGR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank Stocks Here.

Akari has a projected growth rate of 88.9% for the first quarter of 2018. The company delivered positive earnings surprise in the last three trailing quarters with an average of 88.6%.

XOMA is expected to score an impressive earnings growth rate of 99.2% in the 2017. The stock has rallied a whopping 407.4% in the last 6 months, despite a decline of 3% of its industry.

Integer Holdings has a long-term expected earnings growth rate of 15%. The stocks have rallied 50.6% over the broader industry’s gain of 22.9% over the last year.

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