Anika Takes Actions to Strengthen Liquidity in Light of COVID-19

BEDFORD, Mass., April 08, 2020 (GLOBE NEWSWIRE) -- Anika Therapeutics, Inc. (NASDAQ: ANIK), a global, integrated joint preservation and regenerative therapies company with products leveraging its proprietary hyaluronic acid (“HA”) technology platform, today provided an update on actions it is taking to strengthen liquidity in light of the COVID-19 pandemic.

To strengthen its financial position, the Company is drawing down $50 million on its existing credit facility. Following the drawdown, the Company will have total liquidity of approximately $140 million, comprised of cash and investments on hand. The Company has no debt maturities through the end of 2020, and the credit facility matures in October 2022. The applicable interest rate under the credit facility is 2.08% for the $50 million drawdown. Anika may prepay the credit facility without penalty. The Company’s credit facility also has a $50 million accordion feature that the company could potentially access in the future. In addition, Anika is exploring other sources of funding aimed at further supporting its liquidity profile, as well as maintaining business and organizational continuity through the pandemic. In parallel, the Company has implemented a number of internal short-term expense controls and is prioritizing business initiatives to conserve cash flow.

“We are taking these actions to ensure we are best positioned to navigate this unprecedented situation," said Cheryl Blanchard, Ph.D., Interim Chief Executive Officer of Anika Therapeutics. "Our top priority remains protecting the health and safety of our employees and the patients we serve, and we have implemented multiple measures across our organization to safeguard our employees and ensure that we continue providing patients with the treatments they need. At the same time, we are actively working with our partners to support the urgent needs of healthcare providers globally, including donating certain medical supplies we have on hand. We are containing costs and strengthening our liquidity profile to ensure availability of product now and as elective procedures in office-based, surgi-center and operating room settings return to normal volumes. We are committed to retaining business continuity, and with our innovative, life-changing therapies and talented team, we look forward to continuing to serve patients with meaningful therapies that address their unmet medical needs through the coming months and for years to come.”