UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2007

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 000-21326

Anika Therapeutics, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Massachusetts	04-3145961
(State or Other Jurisdiction of	(IRS Employer Identification No.)
Incorporation or Organization)

160 New Boston Street, Woburn, Massachusetts	01801
(Address of Principal Executive Offices)	(Zip Code)

(781) 932-6616
(Registrant’s telephone number, including area code)

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Securities Exchange Act (Check one):

Large accelerated filer o Accelerated filer x Non-accelerated filer o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

Indicate the number of shares outstanding of each of the issuer’s class of common stock, as of the last practicable date. At October 26, 2007 there were 11,169,522 outstanding of Common Stock, par value $.01 per share.

PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

Anika Therapeutics, Inc. and Subsidiary

Consolidated Balance Sheets

(unaudited)

	September 30, 2007			December 31, 2006
ASSETS
Current assets:
Cash and cash equivalents	$	46,159,638		$	47,167,432
Short-term investment	3,508,992			—
Accounts receivable, net of reserves of $49,724 at September 30, 2007 and December 31, 2006	4,965,946			3,509,508
Inventories	4,712,631			5,395,596
Current portion deferred income taxes	1,312,901			1,312,901
Prepaid expenses and other receivables	510,950			220,445
Total current assets	61,171,058			57,605,882
Property and equipment, at cost	22,940,274			13,255,240
Less: accumulated depreciation	(10,756,296		)	(10,237,232		)
	12,183,978			3,018,008
Long-term deposits and other	349,310			193,050
Deferred income taxes	7,525,066			7,296,689
Total Assets	$	81,229,412		$	68,113,629
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,184,935		$	965,180
Accrued expenses	2,355,160			1,573,835
Deferred revenue	3,257,413			2,905,099
Income taxes payable	383,336			17,253
Total current liabilities	10,180,844			5,461,367
Other long-term liabilities	268,243			64,525
Long-term deferred revenue	18,157,404			17,099,712
Commitments and contingencies (Note 8)
Stockholders’ equity
Preferred stock, $.01 par value; 1,250,000 shares authorized, no shares issued and outstanding at September 30, 2007 and December 31, 2006	—			—
Common stock, $.01 par value; 30,000,000 shares authorized, 11,169,522 shares issued and outstanding at September 30, 2007, 10,772,654 shares issued and outstanding at December 31, 2006	111,695			107,727
Additional paid-in-capital	40,031,838			37,262,768
Retained earnings	12,479,388			8,117,530
Total stockholders’ equity	52,622,921			45,488,025
Total Liabilities and Stockholders’ Equity	$	81,229,412		$	68,113,629

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Anika Therapeutics, Inc. and Subsidiary

Consolidated Statements of Operations

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2007		2006		2007		2006
Product revenue	$	7,283,129	$	5,494,407	$	18,989,133	$	18,875,724
Licensing, milestone and contract revenue	682,251		706,250		2,213,855		2,075,934
Total revenue	7,965,380		6,200,657		21,202,988		20,951,658
Operating expenses:
Cost of product revenue	3,138,307		2,125,028		8,655,010		8,063,750
Research & development	1,125,826		905,289		2,969,218		3,111,958
Selling, general & administrative	1,820,998		1,453,393		5,112,147		5,218,992
Total operating expenses	6,085,131		4,483,710		16,736,375		16,394,700
Income from operations	1,880,249		1,716,947		4,466,613		4,556,958
Interest income, net	550,014		569,229		1,692,622		1,520,075
Income before income taxes	2,430,263		2,286,176		6,159,235		6,077,033
Provision for income taxes	634,033		961,536		1,797,377		2,519,579
Net income	$	1,796,230	$	1,324,640	$	4,361,858	$	3,557,454
Basic net income per share:
Net income	$	0.16	$	0.12	$	0.40	$	0.34