UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

		For the quarterly period ended March 31, 2008

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 Incorporation or Organization)		(I.R.S. Employer Identification No.)

32 Wiggins Avenue, Bedford, Massachusetts		01730
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (781) 457-9000

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report: N/A

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 last 90 days. Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions 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
(Do not check if a smaller
reporting company)

Smaller reporting company o

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

At April 30, 2008 there were 11,327,923 outstanding shares 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)

	March 31, 2008			December 31, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	38,953,354		$	35,903,569
Short-term investments	—			3,501,974
Accounts receivable, net of reserves of $60,000 at March 31, 2008 and December 31, 2007, respectively.	3,290,202			5,795,973
Inventories	5,368,833			4,390,118
Current portion deferred income taxes	1,657,007			1,657,007
Prepaid expenses and other	961,836			1,194,081
Total current assets	50,231,232			52,442,722
Property and equipment, at cost	33,475,298			28,101,422
Less: accumulated depreciation	(9,082,143		)	(8,731,706		)
	24,393,155			19,369,716
Long-term deposits and other	598,052			433,081
Intangible asset, net	980,392			995,098
Deferred income taxes	6,362,069			6,256,067
Total Assets	$	82,564,900		$	79,496,684

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,564,308		$	4,866,619
Accrued expenses	4,087,069			2,760,010
Deferred revenue	2,800,528			2,806,778
Income taxes payable	288,761			203,954
Current portion of long-term debt	100,000			—
Total current liabilities	8,840,666			10,637,361
Other long-term liabilities	521,148			398,365
Long-term deferred revenue	12,825,000			13,500,001
Long-term debt	3,900,000			—
Commitments and contingencies (Note 8)
Stockholders’ equity

Preferred stock, $.01 par value; 1,250,000 shares authorized, no shares issued and outstanding at March 31, 2008 and December 31, 2007	—			—
Common stock, $.01 par value; 30,000,000 shares authorized, 11,327,923 shares issued and outstanding at March 31, 2008, 11,223,273 shares issued and outstanding at December 31, 2007	113,279			112,233
Additional paid-in-capital	41,594,465			40,695,940
Retained earnings	14,770,342			14,152,784
Total stockholders’ equity	56,478,086			54,960,957
Total Liabilities and Stockholders’ Equity	$	82,564,900		$	79,496,684

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 March 31,
	2008		2007
Product revenue	$	7,867,529	$	5,374,038
Licensing, milestone and contract revenue	681,250		764,008
Total revenue	8,548,779		6,138,046

Operating expenses:
Cost of product revenue	3,216,070		2,492,922
Research & development	1,508,340		847,341
Selling, general & administrative	3,068,616		1,575,050
Total operating expenses	7,793,026		4,915,313
Income from operations	755,753		1,222,733
Interest income, net	189,406		566,777
Income before income taxes	945,159		1,789,510
Provision for income taxes	327,601		588,733
Net income	$	617,558	$	1,200,777
Basic net income per share:
Net income	$	0.06	$	0.11
Basic weighted average common shares outstanding	11,225,282		10,878,448
Diluted net income per share:
Net income	$	0.05	$	0.11
Diluted weighted average common shares outstanding	11,612,720		11,218,322

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

Anika Therapeutics, Inc. and Subsidiary

Consolidated Statements of Cash Flows

For the Three Months Ended

(unaudited)

	Three Months Ended March 31,
	2008		2007
Cash flows from operating activities:
Net income	$	617,558	$	1,200,777
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	365,143		161,658
Amortization of premium on short-term investment	1,974