Anika Therapeutics Shares Up After Cosmetic Surgery Products Pact With Galderma Pharma

WOBURN, Mass. -- Shares of Anika Therapeutics Inc. jumped after the tissue-products maker said Wednesday it will receive a $1 million payment upon entering a development and commercialization agreement with Galderma Pharma SA, a joint venture between Swiss food and beverage company Nestle and French cosmetics maker L'Oreal.

Anika shares rose 66 cents, or 6.9 percent, to $10.27 in morning trading on the Nasdaq. Shares have traded between $9.37 and $14.95 over the past 52 weeks.

The agreement calls for the development and comercialization of tissue products used in cosmetic surgery. Such products are used to treat facial wrinkles, hide scars, and augment the lips. Anika will also receive milestone payments after reaching development targets, regulatory approvals, and sales targets. Anika will also receive royalties on the products.

Anika said Galderma will also reimburse the company to enhance existing products in development and file amendments to regulatory applications. Commercialization of the enhanced products is expected by mid-2007.