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 June 30, 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		(I.R.S. Employer Identification No.)
Incorporation or Organization)

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 August 1, 2008, there were 11,367,723 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)

	June 30,			December 31,
	2008			2007
ASSETS
Current assets:
Cash and cash equivalents	$	37,297,479		$	35,903,569
Short-term investments	—			3,501,974
Accounts receivable, net of reserves of $60,000	5,932,086			5,795,973
Inventories	4,782,480			4,390,118
Current portion deferred income taxes	1,657,007			1,657,007
Prepaid expenses and other	513,283			1,194,081
Total current assets	50,182,335			52,442,722
Property and equipment, at cost	39,526,388			28,101,422
Less: accumulated depreciation	(9,442,234		)	(8,731,706		)
	30,084,154			19,369,716
Long-term deposits and other	591,927			433,081
Intangible asset, net	965,686			995,098
Deferred income taxes	6,492,348			6,256,067
Total Assets	$	88,316,450		$	79,496,684

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	3,146,677		$	4,866,619
Accrued expenses	3,436,066			2,760,010
Deferred revenue	2,819,274			2,806,778
Current portion of long-term debt	400,000			—
Income taxes payable	291,537			203,954
Total current liabilities	10,093,554			10,637,361
Other long-term liabilities	670,285			398,365
Long-term deferred revenue	12,150,001			13,500,001
Long-term debt	7,600,000			—
Commitments and contingencies (Note 8)
Stockholders’ equity
Preferred stock, $.01 par value; 1,250,000 shares authorized, no shares issued and outstanding	—			—
Common stock, $.01 par value; 30,000,000 shares authorized, 11,367,723 shares issued and outstanding at June 30, 2008, 11,223,273 shares issued and outstanding at December 31, 2007	113,677			112,233
Additional paid-in-capital	42,105,662			40,695,940
Retained earnings	15,583,271			14,152,784
Total stockholders’ equity	57,802,610			54,960,957
Total Liabilities and Stockholders’ Equity	$	88,316,450		$	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 June 30,				Six Months Ended June 30,
	2008		2007		2008		2007
Product revenue	$	8,378,936	$	6,331,966	$	16,246,465	$	11,706,004
Licensing, milestone and contract revenue	681,253		767,596		1,362,503		1,531,604
Total revenue	9,060,189		7,099,562		17,608,968		13,237,608

Operating expenses:
Cost of product revenue	3,644,530		3,023,781		6,860,600		5,516,703
Research & development	1,644,619		996,051		3,152,959		1,843,392
Selling, general & administrative	2,880,156		1,716,099		5,948,772		3,291,149
Total operating expenses	8,169,305		5,735,931		15,962,331		10,651,244
Income from operations	890,884		1,363,631		1,646,637		2,586,364
Interest income, net	157,875		575,831		347,281		1,142,608
Income before income taxes	1,048,759		1,939,462		1,993,918		3,728,972
Provision for income taxes	235,830		574,611		563,431		1,163,344
Net income	$	812,929	$	1,364,851	$	1,430,487	$	2,565,628
Basic net income per share:
Net income	$	0.07	$	0.12	$	0.13	$	0.23
Basic weighted average common shares outstanding	11,327,457		11,018,053		11,276,871