Investment Recommendation By:• Devopama Pant• Chen Liang• Qiao Du

Date of Presentation: 12/09/2014

INSPIRED BY NATURE.PERFECTED BY SCIENCE.

Agenda

Company ProfileCurrent Financial PositionStrategy OverviewIndustry ReviewMacroeconomic ReviewFinancial AnalysisValuationRecommendation

A global medical technology company at the forefront of pain management, tissue regeneration and wound healing

20 years of R&D, Manufacturing and Commercialization experience with innovative HA products

Product approvals worldwide 400 scientific publications 50 patents on native and chemically modified HA

Anika Therapeutics Inc.

Third Quarter 2014 Anika Therapeutics Earnings Conference Call Webcast and Presentation http://ir.anikatherapeutics.com/events.cfm

Anika Vs NASDAQ

10K-2013 Anika Therapeutics http://www.sec.gov/Archives/edgar/data/898437/000115752313001397/a50585765.htm

Target Segments

Sports Injuries

Aging Population

Veterinary Services

Products

OrthobiologicsDermalSurgicalOther HA (Hyaluronic Acid) Solutions

Orthobiologics: Safe and Natural Solutions Help Restore Active Function, following orthopedic trauma or reconstructive surgery, viscosupplementation represents an effective, safe and convenient therapeutic alternative to medication and surgery,

High Molecular Weight Hyaluronic Acid Injection

Single Injection, Lightly Cross-linked High Molecular Weight Hyaluronic Acid

Hyaluronan-based Scaffold for Human MSC Entrapment & Differentiation

Improving Outcomes of the Final Phases of Orthopedic and Trauma Reconstructive Surgical Procedures

Anti-Adhesion Gel

Dermal: Naturally Powerful Solutions to Enhance Natural Beauty and Manage Wounds

Film Wound Dressing

Dermal Filler

Biodegradable Wound Dressing

Burn and Ulcer Management

PA Tissue Reconstruction Matrix

Surgical: Safe and natural protection against post-surgical adhesions

To prevent or Reduce Abdomino-Pelvic Area Post-Surgical Adhesions

prevent or reduce the formation of adhesions following spinal surgery

ENT Solutions

Ear nose and throat products

Other HA (Hyaluronic Acid) Solutions: A naturally occurring polymer found throughout the body, is vital for maintaining the functionality of healthy joints and tissue. Anika’s proprietary tissue regeneration technology, based on HA, offers a natural approach to healing and recovery

Used in eye surgery including cataract extraction,intraocular lens implantation, corneal transplant surgery, glaucoma filtering surgery, and retina re-attachment

Forms a compact gel promoting bone graft application inthe bone defect

Used in the management of joint dysfunction in horses with equine osteoarthritis.

Competitors

STAAR Surgical Company

IRIDEX Corporation

SCIVISION Biotech, Inc.

Partnership

Since their founding, they have worked to forge long-term collaborations with industry leaders, including : Depuy Synthes Mitek Sports Medicine, Inc.,Medtronic, Inc., Boehringer Ingelheim Vetmedica, Inc.Bausch & Lomb

Business Model

Successful Business Model Delivering Consistent Growth

Third Quarter 2014 Anika Therapeutics Earnings Conference Call Webcast and Presentation http://ir.anikatherapeutics.com/events.cfm

Double digit Revenue growth and shareholder return

Third Quarter 2014 Anika Therapeutics Earnings Conference Call Webcast and Presentation http://ir.anikatherapeutics.com/events.cfm

YTD Financial Results 2014

Third Quarter 2014 Anika Therapeutics Earnings Conference Call Webcast and Presentation http://ir.anikatherapeutics.com/events.cfm

Strong Core Business Growth

Third Quarter 2014 Anika Therapeutics Earnings Conference Call Webcast and Presentation http://ir.anikatherapeutics.com/events.cfm

Key Growth Drivers Continue to capitalize on strong viscosupplementation

market Advance tissue regeneration products Expand market share and geographic presence for key

products in U.S., Europe, Latin America and Asia Expand product portfolio via line extensions Continue transformation from biomaterials company to

company focusing on advanced tissue healing and regenerative medical solutions

Third Quarter 2014 Anika Therapeutics Earnings Conference Call Webcast and Presentation http://ir.anikatherapeutics.com/events.cfm

Expected Growth

Third Quarter 2014 Anika Therapeutics Earnings Conference Call Webcast and Presentation http://ir.anikatherapeutics.com/events.cfm

Macroeconomic & Industry Drivers Growing employment rate Increasing R&D expenditure Increasing number of people aged 50 and older International market opportunity Continued M&A activities Favorable legislation

IBIS Industry Report http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?entid=2001 http://clients1.ibisworld.com/reports/us/industry/currentperformance.aspx?entid=2001

Industry Executive Summary Over the past five years, revenue has grown an

annualized 5.5% to &98.5 billion, which includes a 3.2% increase in 2014.

IBISWorld report expects total revenue to grow an annualized 9.1% to $152.4 billion over next five years.

Key stats in 2014

IBIS Industry Report http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?entid=2001

Industry Segmentation

IBIS Industry Report http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?entid=2001

Porter’s 5 Forces Model

Barrier to entry: HIGH

Strong intellectual property orientedCapital intensiveStrict government regulation

Threat of Substitutes:LOW

Niche Market High R&D cost

Bargaining Power of suppliers:

LOW to MEDIUM Only raw materials are

required

Bargaining Power of buyers: MEDIUM

Product with high technology

Large buyers

Competition: MEDIUM

Niche market Fast Technology updated

Strengths • Niche-player but has diversified

products within the niche market• Conduct business based on own

technologies• Debt free• 9+ million tax credit without time

limitation

Weaknesses

• No own sales force.• Limited M&A opportunity

Opportunity

• New products received FDA approval this February (osteoarthritis product MONOVISC)

• New products under development (osteoarthritis product GINGAL)

• International market

Threats• Regulation• Several companies are developing

and/or marketing products utilizing HA for variety of human applications.

• Its revenues are derived from a small number of customers.

SWOT Analysis

Ratio Analysis

DuPont Analysis

2009-12-31

2010-12-31

2011-12-31

2012-12-31

2013-12-31

2014-12-31

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%

180.00%

DuPont Analysis

Tax Burden Interest BurdenOperating Margin Asset TurnoverLeverage Ratio

Comparable Analysis

Weighted Average Cost of Capital

Discounted Cash Flow Analysis

Technical Analysis

Recommendation

BUY 200 SHARES@ MKT

Current stock price: $39.37 Implied stock price: $41.73