Boston Business Journal - December 20, 2004

Anika signs deal, gets $5M milestone payment

Anika Therapeutics Inc. said Monday it has signed a multiyear supply agreement with the eye health company Bausch & Lomb Inc. for viscoelastic products used in ophthalmic surgery.

Terms for Woburn-based Anika's (NASDAQ: ANIK) deal with Bausch & Lomb Inc. (NYSE: BOL) with were not disclosed.

Viscoelastic products, composed of hyaluronic acid, protect delicate eye tissue and maintain eye structure during cataract and certain refractive surgeries.

In other company business, Anika separately announced that it has received a $5 million contractual milestone payment under a previously disclosed U.S. licensing and distribution agreement with Ortho Biotech Products LP for OrthoVisc, a treatment for osteoarthritis of the knee. The payment is tied to the incorporation of planned upgrades into Anika's manufacturing operations. Starting in the fourth quarter of 2004, this cash payment will be recognized as revenue ratably over the initial 10-year term of that agreement.

Anika develops, manufactures and commercializes therapeutic products and devices intended to promote the repair, protection and healing of bone, cartilage and soft tissue.