Anika Therapeutics, Inc. (ANIK): Business Model Canvas [Dec-2025 Updated]

You're looking at the engine room of a medical device company making a crucial pivot, and honestly, the numbers for Anika Therapeutics, Inc. in 2025 tell a compelling story. After years relying on the OEM channel, which is still projected to bring in $62 million to $65 million this year, the real growth driver is defintely their high-margin regenerative solutions, which jumped 25% in Q3 alone, pushing the Commercial Channel revenue toward $47 million to $49.5 million. As a former head analyst, I see this shift-moving away from just supplying others to owning the direct relationship with orthopedic surgeons-as the defining move for unlocking future value, especially with that key Johnson & Johnson MedTech distribution agreement in place. Dive into the full Business Model Canvas below to see exactly how their Key Activities and Resources line up to support this high-margin future.

Anika Therapeutics, Inc. (ANIK) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships Anika Therapeutics, Inc. relies on to move its products and pipeline forward. These aren't just vendor agreements; they are core to revenue generation and regulatory progress, especially for their hyaluronic acid (HA) based products.

Johnson & Johnson MedTech for U.S. OA Pain Management Distribution

Johnson & Johnson MedTech (J&J MedTech) serves as the exclusive commercial partner for Anika Therapeutics, Inc.'s U.S. Osteoarthritis (OA) Pain Management products, specifically Monovisc and Orthovisc. This partnership grants J&J MedTech unilateral decision-making authority over the sale, price, and promotion of these products in the United States. The financial impact of this OEM Channel is significant, though subject to pricing pressures.

Here's a look at the financial context of this key distribution relationship for fiscal year 2025:

License and Supply Agreement for Monovisc Extended through December 2031

The foundational agreement governing Monovisc in the U.S. has been secured for the long term. In Q3 2025, J&J MedTech made a significant commitment by exercising its option to extend the current license and supply agreement for Monovisc. This extension locks in the partnership for another five-year term, running through December 2031. This agreement was originally signed back in 2011.

The longevity of this partnership is critical, even as Anika Therapeutics, Inc. navigates pricing volatility:

• Agreement extension secured through December 2031.
• Original U.S. distribution agreement signed in 2011.
• Monovisc and Orthovisc remain market leaders in the U.S. OA Pain Management market.

Network of International Distributors for Global Product Expansion

Outside the U.S., Anika Therapeutics, Inc. relies on a worldwide network of commercial distributors to expand its OA Pain Management portfolio. This channel is controlled by Anika's internal commercial team and shows strong growth independent of the U.S. OEM channel dynamics.

The performance of this international distribution network in 2025 demonstrates solid traction:

• International OA Pain Management revenue grew 21% year-over-year in Q3 2025.
• Year-to-date International OA Pain Management revenue was up 6% compared to 2024.
• International OA Pain Management growth was 13% in Q1 2025.
• The Integrity Implant System, part of the Commercial Channel, is on pace to more than double procedures in 2025 compared to 2024.

Clinical Research Organizations for Hyalofast and Cingal Trials

Advancing the pipeline, particularly for Hyalofast and Cingal, requires collaboration with clinical research organizations (CROs) to execute necessary trials and compile data for regulatory submissions. These partnerships are focused on achieving U.S. market entry for these next-generation products.

Key milestones achieved through these clinical efforts as of late 2025 include:

• Hyalofast: Third and final Premarket Approval (PMA) module filed with the FDA on October 31, 2025.
• Hyalofast: U.S. launch expected in 2026.
• Hyalofast: Currently marketed in over 35 countries outside the U.S. since 2009.
• Cingal: Surpassed a commercial milestone of more than 1 million injections worldwide since 2016.
• Cingal: Anika completed the first of two required toxicity studies and began screening for the bioequivalence study before year-end 2025.

The Hyalofast U.S. pivotal Phase III FastTRACK trial showed statistically significant improvements over microfracture in key secondary endpoints, such as a 12.19-point gain in KOOS Sports and Recreation scores (p=0.01). Finance: draft 13-week cash view by Friday.

Anika Therapeutics, Inc. (ANIK) - Canvas Business Model: Key Activities

You're looking at the core engine driving Anika Therapeutics, Inc. right now-the day-to-day work that turns their HA expertise into revenue. It's a mix of heavy-duty production, regulatory hurdles, and aggressive sales pushes for their newer tech.

Manufacturing of proprietary hyaluronic acid (HA) based products

Anika Therapeutics, Inc. focuses its manufacturing on its hyaluronic acid (HA) based portfolio, which includes both the established OA Pain Management products and the newer Regenerative Solutions like the Integrity Implant System. The company faced temporary production yield issues in the first half of 2025, but management stated they expected these effects to be fully resolved by the end of the third quarter of 2025.

The commercial success of their HA-based products is evident in the sales figures. For instance, Cingal®, another HA-based product, reached a significant commercial milestone of more than one million injections worldwide since 2016 as of the third quarter of 2025.

Research and development for pipeline products like Cingal and Hyalofast

Research and development activities are heavily weighted toward advancing the pipeline, particularly for U.S. market entry of key regenerative products. Year-to-date R&D expenses were up 1% compared to the prior year, largely influenced by specific pipeline costs. Honestly, the R&D spend reflects the push to get these products across the finish line.

Here's the quick math on R&D drivers:

• External expenses increased by $1.8 million, driven by a $2 million increase in Cingal pre-filing requirements.
• Internal R&D expenses were down 12% year-to-date versus 2024, showing a commitment to operational efficiency.

The focus is clearly on regulatory readiness for these two major assets.

Commercial channel expansion, especially for the Integrity Implant System

Commercial channel expansion is a key activity where Anika Therapeutics, Inc. controls the sales, marketing, and pricing, leading to strong top-line growth in that segment. The Integrity Implant System is the star here. In the third quarter of 2025, Commercial Channel revenue grew 22% year-over-year, reaching $12.0 million.

The Integrity Implant System is performing exceptionally well, on pace to more than double procedures and revenue in 2025 compared to 2024. This product has now delivered sequential growth for six consecutive quarters as of the third quarter of 2025. The company is also expanding its use, with recently cleared larger shapes and sizes for Achilles and other large tendon applications entering limited release during the quarter.

Regulatory filings, including the final PMA module for Hyalofast

Navigating the U.S. Food and Drug Administration (FDA) is a critical, time-intensive activity. Anika Therapeutics, Inc. successfully executed a major milestone for Hyalofast, filing the third and final Premarket Approval (PMA) module on October 31, 2025. This filing included the 24-month data from the pivotal FastTRACK Phase III study.

The data from that study supports the regulatory push. While the study did not meet its co-primary endpoints, the secondary endpoints showed clear benefit over the microfracture control:

• KOOS Sports and Recreation: 12.19-point gain (p=0.01).
• KOOS Quality of Life: 9.52-point improvement (p=0.03).
• Total KOOS (Pain and Function composite): 6.57-point improvement (p=0.02).

To be fair, the company is also advancing Cingal, having received formal written feedback from the FDA following a Type C meeting, clearing the path for an NDA submission in the U.S. after completing two remaining studies.

Anika Therapeutics, Inc. (ANIK) - Canvas Business Model: Key Resources

You're looking at the core assets Anika Therapeutics, Inc. relies on to run its business as of late 2025. These aren't just things on a balance sheet; they are the actual engines driving their revenue streams, especially given the recent strategic focus on their core hyaluronic acid (HA) technology.

Proprietary hyaluronic acid (HA) platform technology (HYAFF)

The foundation here is over 30 years of developing, manufacturing, and selling differentiated HA products. This platform allows Anika Therapeutics to create both viscous fluid injectables and solid-form scaffolds for musculoskeletal care. The Integrity™ Implant System itself is constructed using Anika's Hyaff® material, which is their proven HA technology designed to support tissue regeneration and resorb over time.

The total addressable global market for the focused HA-driven OA Pain Management and Regenerative Solutions portfolio is estimated to be $4 billion.

FDA-approved product portfolio (e.g., Monovisc, Orthovisc, Integrity)

Anika Therapeutics segments its commercial revenue into two main channels: the Commercial Channel and the OEM Channel. The OEM Channel, which includes U.S. OA Pain Management products like Monovisc® and Orthovisc®, saw revenue decline by 16-20% for the full year 2025 projection, targeting $62-65 million. Conversely, the Commercial Channel, which includes Regenerative Solutions, is projected to grow, targeting $47-49.5 million in 2025 revenue, representing growth of 12-18%.

Looking at the most recent reported quarter, Q2 2025, total revenue was $28.2 million, an 8% decrease year-over-year. The Commercial Channel revenue was flat year-over-year for Q2 2025, but the Regenerative Solutions segment within it grew 41%, largely thanks to the Integrity™ Implant System.

Here's a quick look at the 2025 guidance and recent performance:

The company also holds key products like Monovisc® and Orthovisc®, which are distributed through their commercial partner, J&J MedTech.

Massachusetts-based manufacturing and R&D facilities

Anika Therapeutics manufactures all of its HA-based products, including the Regenerative Solutions and OA Pain Management lines, at its facility in Bedford, Massachusetts. This corporate headquarters location leases approximately 134,000 square feet of space dedicated to administrative, research and development, and manufacturing functions. The lease for this primary facility contains options to extend the term through October 2038.

The company recently inaugurated a newly-expanded and consolidated global manufacturing facility in Bedford, MA, to onshore production. In terms of R&D investment, expenses decreased by 6% to $6.3 million in Q2 2025, reflecting cost-saving measures.

The physical footprint includes:

• - Bedford, Massachusetts: Approximately 134,000 square feet for HQ, R&D, and manufacturing.
• - Warsaw, Indiana: Additional space, lease expiring between 2025 and beyond.
• - Padova, Italy: Additional space, lease expiring between 2025 and beyond.
• - Total additional space from non-Massachusetts facilities is over 80,000 square feet.

Intellectual property protecting regenerative and OA pain solutions

The intellectual property centers on the HA platform and specific product pipelines targeting cartilage repair and next-generation OA pain management. A major IP asset is the Hyalofast® resorbable, HA-based scaffold. As of November 5, 2025, Anika Therapeutics submitted the third and final module of its Premarket Approval application (PMA) to the FDA for Hyalofast, with a U.S. launch targeted for 2026.

The pipeline also includes Cingal®, with key activities underway for its New Drug Application (NDA) filing. The company's financial position as of September 30, 2025, shows $58 million in cash with no debt, which funds the roll-out of these growth products without needing to raise capital.

Key IP and Pipeline Milestones as of late 2025:

• - Hyalofast® PMA Filing: Third and final module submitted to the FDA on October 31, 2025.
• - Cingal® Regulatory Status: Nearing New Drug Application (NDA) filing.
• - Integrity™ System IP: Received FDA 510(k) clearance for new shapes/sizes, expected in U.S. by year-end 2025.

Anika Therapeutics, Inc. (ANIK) - Canvas Business Model: Value Propositions

You're looking at the core promises Anika Therapeutics, Inc. makes to its customers-the value it delivers that keeps the business moving forward, especially as the Commercial Channel revenue grew by 22% year-over-year in the third quarter of 2025, reaching $12 million.

The company's value centers on providing differentiated solutions across the orthopedic continuum, from pain management to true tissue repair. This focus is reflected in their financial segmentation, where the Commercial Channel, representing these differentiated products, is expected to generate between $47 million and $49.5 million in total revenue for fiscal 2025, marking growth of 12% to 18% year-over-year.

Here's a look at how the key product lines are performing, which directly underpins these value propositions as of the third quarter ended September 30, 2025:

The commitment to early intervention orthopedic care to delay joint replacement is evident in the focus on the Commercial Channel, which saw its revenue climb to $12 million in Q3 2025. This segment is where Anika Therapeutics, Inc. pushes its differentiated, often single-stage, regenerative products.

For non-opioid pain management for osteoarthritis, the value is split between direct sales and partnership revenue. While the OEM Channel saw a 20% revenue decrease due to pricing pressures on Monovisc and Orthovisc, the Cingal product itself hit a major usage benchmark, surpassing one million injections globally.

The promise of regenerative solutions for soft tissue and cartilage repair is being realized through the Integrity Implant System, which is expected to more than double its performance in 2025. Furthermore, the company is advancing its pipeline, having filed the final module for the Hyalofast PMA with the FDA in the third quarter of 2025.

The overall strategy is to offer minimally invasive products restoring active living for patients. This is supported by a strong balance sheet, ending Q3 2025 with a $58 million cash balance and no debt, which allows for continued investment in this area.

You can see the strategic emphasis in the following areas:

• Regenerative Solutions revenue increased by 25% in the third quarter of 2025.
• The Integrity Implant System has delivered sequential growth for six consecutive quarters in the U.S.
• International OA Pain Management revenue saw double-digit growth in Q3 2025.
• The company is maintaining its fiscal 2025 guidance despite mixed performance across channels.

Finance: draft 13-week cash view by Friday.

Anika Therapeutics, Inc. (ANIK) - Canvas Business Model: Customer Relationships

You're looking at how Anika Therapeutics, Inc. manages its key customer interactions across its focused portfolio of OA Pain Management and Regenerative Solutions as of late 2025. The approach is clearly bifurcated: direct control for high-growth regenerative products and reliance on a major partner for established U.S. pain management.

Direct sales force engagement with orthopedic surgeons for Regenerative Solutions.

The direct engagement model is clearly driving the growth engine in the Commercial Channel, which includes the Regenerative Solutions portfolio like the Integrity Implant System. Integrity procedures are on pace to more than double in 2025 compared to the prior year, showing strong surgeon adoption. This product line saw year-over-year revenue growth of 33% in the first quarter of 2025 and accelerated to 41% in the second quarter of 2025. By the third quarter of 2025, Integrity procedures grew for the sixth consecutive quarter, delivering a 25% year-over-year increase in Regenerative Solutions revenue. More than 300 Integrity surgeries were performed for the second straight quarter in Q1 2025, indicating deep engagement with the user base.

The relationship structure across the two primary channels, which dictates the customer interaction model, looks like this for the fiscal year 2025 guidance:

B2B relationship management with major OEM partner (J&J MedTech).

The relationship with Johnson & Johnson MedTech remains critical, as they exclusively sell Monovisc and Orthovisc in the United States. This dependency is significant; J&J MedTech accounted for 57% of Anika Therapeutics revenue in 2024. The relationship is structured as a supply agreement where Anika Therapeutics sells the products to J&J MedTech, plus Anika receives a royalty on their end-user sales. However, this channel is under pricing pressure, reflected in the OEM Channel revenue guidance for 2025 being down 16% to 20% year-over-year. The OEM Channel revenue for Q1 2025 was $14.9 million, a 23% decrease from the prior year. You have to monitor the stability of this B2B dynamic, as pricing volatility has not been fully offset by J&J MedTech's stabilization efforts.

Support and training for international distributor network partners.

For international OA Pain Management and the Hyalofast product (sold outside the U.S.), Anika Therapeutics relies on a network of distributor partners. This channel is part of the Commercial Channel, which Anika controls more directly. International Sales delivered third-quarter 2025 revenue growth of 21% year-over-year, driven by distributor orders. Still, International OA Pain Management revenue remained flat through the first half of 2025, impacted by order timing and temporary production yield issues. The company is focused on replenishing distributor inventory levels through the third quarter of 2025.

Clinical education and post-market surveillance for product adoption.

For the Regenerative Solutions portfolio, adoption is heavily supported by clinical education. The team is actively engaged in training and education on the safe and effective use of the Integrity Implant System for both new and existing surgeons. This investment is clearly paying off, as the company is on track to double Integrity procedures and revenue in 2025. Furthermore, post-market surveillance and clinical advancement are key for pipeline products; the Integrity prospective clinical study advanced in Q1 2025 with patient enrollment underway, aiming for full site activation in the second half of 2025 to support future European market launch.

The company, which has 400 total employees, uses these distinct relationship strategies to manage its two revenue streams. Finance: draft 13-week cash view by Friday.

Anika Therapeutics, Inc. (ANIK) - Canvas Business Model: Channels

You're looking at how Anika Therapeutics, Inc. gets its products-from joint pain relief to regenerative implants-into the hands of surgeons and patients as of late 2025. The channel strategy is clearly split between established, lower-growth partnerships and higher-growth direct sales efforts.

The distribution landscape for Anika Therapeutics, Inc. relies on a dual approach, balancing the legacy revenue from established partnerships with the expansion of its own commercial footprint for newer, higher-growth regenerative products. Here's how the numbers break down for the fiscal year 2025 guidance and the latest reported quarter, Q3 2025.

OEM Channel: Sales through Johnson & Johnson MedTech in the U.S.

This channel is centered on the U.S. sales of Monovisc^® and Orthovisc^®, managed by your commercial partner, Johnson & Johnson MedTech. Honestly, this channel is facing pricing headwinds; the full-year 2025 guidance projects a revenue decline for the OEM Channel of 16% to 20% year-over-year, landing between $62 million and $65 million. In the third quarter of 2025, this segment brought in $15.8 million, a 20% drop compared to Q3 2024, largely due to J&J MedTech's pricing stabilization efforts. On a positive note for long-term stability, J&J MedTech exercised its option to extend the current license and supply agreement for Monovisc for another 5-year term through December 2031.

Commercial Channel: Direct sales force for U.S. Regenerative Solutions.

This is where the growth story is, driven by the direct sales force focusing on Regenerative Solutions like the Integrity™ Implant System. The full-year 2025 revenue guidance for the Commercial Channel is set at $47 million to $49.5 million, representing growth of 12% to 18% year-over-year. The momentum is clear: Q3 2025 saw this channel deliver $12 million, a 22% increase from the prior year. The Integrity Implant System is a key driver here, with U.S. procedures growing for the sixth consecutive quarter. As of Q3 2025, approximately 500 procedures were performed by nearly 300 surgeon users.

International Distributors for global OA Pain Management and Hyalofast.

Outside the U.S., Anika Therapeutics, Inc. relies on a worldwide network of commercial distributors for its OA Pain Management products and Hyalofast. International OA Pain Management revenue showed resilience, remaining flat through the first half of 2025, but then posted a 21% year-over-year increase in Q3 2025, bringing year-to-date growth to 6%. For the cartilage repair scaffold, Hyalofast, it's currently marketed in over 35 countries outside the U.S., having treated more than 35,000 patients since its 2009 launch. The company is pushing for U.S. approval, planning to file the final PMA module in the second half of 2025, and projects $3 million in Hyalofast revenue by 2027.

The direct sales approach is also used to drive adoption in key sites of care, which you need to track closely.

• The direct sales force targets high-volume facilities for its Regenerative Solutions portfolio.
• The Integrity Implant System is gaining traction, with over 60% of users completing multiple cases, showing sustained clinical confidence.
• The company is expanding the Integrity line with a limited release of larger shapes for expanded tendon applications.

Ambulatory Surgery Centers (ASCs) as a key site of care.

The shift toward outpatient settings is critical for the Commercial Channel's growth, especially for the Integrity Implant System. While specific revenue contribution from ASCs isn't broken out separately from the Commercial Channel total, the strategy involves selling directly to facilities like ASCs, which is a departure from the historical OEM model. This direct engagement allows for better control over the adoption curve for newer devices. If onboarding for new surgeon users takes longer than expected, say 14+ days, churn risk definitely rises.

Finance: draft 13-week cash view by Friday.

Anika Therapeutics, Inc. (ANIK) - Canvas Business Model: Customer Segments

You're looking at who Anika Therapeutics, Inc. is selling to right now, late in 2025. It's a mix of direct sales to surgeons and indirect sales through big partners.

The customer base is segmented across a few key areas, showing where the current revenue strength is and where the legacy business is facing pressure. For instance, the Commercial Channel is definitely the growth engine, with revenue up 22% in the third quarter of 2025.

Here's a breakdown of those groups and what the latest numbers show:

• - Orthopedic Surgeons focused on early intervention and sports medicine: Procedures for the Integrity™ Implant System are on pace to more than double in 2025. Over 300 Integrity surgeries were performed in Q1 2025 for the second straight quarter.
• - Patients with degenerative orthopedic diseases and traumatic conditions: The company achieved a milestone with over one million Cingal injections worldwide as of Q3 2025.
• - Large medical device companies (OEMs) requiring HA-based products: This segment, which includes U.S. OA Pain Management, saw OEM Channel revenue decline by 20% in Q3 2025. Full-year 2025 guidance projected an OEM Channel revenue decrease of 16% to 20% year-over-year. For context, J&J MedTech accounted for 57% of revenue back in 2024.
• - International healthcare providers and distributors in over 35 countries: International OA Pain Management saw double-digit growth in Q3 2025, following a 13% growth rate in Q1 2025.

The Regenerative Solutions part of the business, which is part of the Commercial Channel, is really pulling its weight. That revenue grew 41% in the second quarter of 2025.

You can see the split in the revenue channels as of the latest reported periods:

It's clear that the direct-to-surgeon focus, especially with the Integrity Implant System, is where the company is seeing its most reliable growth right now. The U.S. tendon augmentation market that Integrity competes in is estimated to be more than $220 million annually.

Anika Therapeutics, Inc. (ANIK) - Canvas Business Model: Cost Structure

You're looking at the costs Anika Therapeutics, Inc. incurs to keep its HA-based product engine running as of late 2025. It's a mix of manufacturing, heavy R&D for pipeline advancement, and managing the commercial footprint.

The cost of making the products, which is the Cost of Goods Sold (COGS), is directly impacted by the gross margin. For the third quarter ended September 30, 2025, Anika Therapeutics, Inc. reported a gross profit of $15.6 million on revenue of $27.817 million. This resulted in a gross margin of 56% for that quarter. The year-over-year decline in gross margin, which fell 10 percentage points year-over-year, was largely due to lower pricing on Monovisc and Orthovisc sales to J&J MedTech.

Research and Development (R&D) remains a significant cost center, reflecting the company's commitment to its pipeline. For Q3 2025, R&D expenses were $6.9 million, marking an increase of 17% year-over-year. This investment supports critical regulatory steps, such as the progression toward the U.S. NDA filing for Cingal, which included completing a toxicity study. Furthermore, the company is advancing the Hyalofast U.S. approval path, having filed the final PMA module.

You'll see operating discipline reflected in the Selling, General, and Administrative (SG&A) line. For the third quarter of 2025, SG&A expenses were $11.9 million, which is a reduction of 12% year-over-year. Overall operating expenses decreased 3% for the quarter.

Capital expenditures (CapEx) are tied to scaling up the core manufacturing base in Massachusetts, where they produce their HA-based products. For the first six months of 2025, Anika Therapeutics, Inc. reported capital expenditures of $4.3 million, a decrease from the $5.2 million spent in the same period in 2024. The Q2 2025 report specifically noted $1,400,000 in CapEx for that quarter, which was down $2,000,000 year-over-year, with these investments focused on expanding capacity at the Massachusetts facility.

Here is a quick look at the key operating expense components for Q3 2025:

The costs associated with clinical development, particularly for regulatory submissions, are ongoing investments. The company is focused on two major regulatory catalysts:

• Cingal U.S. NDA path, with the bioequivalence study screening underway.
• Hyalofast U.S. approval, where the final PMA module was submitted.

The capital spending is clearly directed toward supporting anticipated volume growth for products like Monovisc, CINGAL, Integrity, and Hialifast.

• Six-Month Period Ended June 30, 2025 CapEx: $4.3 million.
• Q2 2025 CapEx: $1.4 million.
• Cash balance as of September 30, 2025: $58.0 million.

Anika Therapeutics, Inc. (ANIK) - Canvas Business Model: Revenue Streams

You're looking at how Anika Therapeutics, Inc. brings in cash, which as of late 2025 is clearly split between two main channels, one shrinking and one growing fast.

The OEM Channel revenue, which primarily covers U.S. Osteoarthritis Pain Management products sold through Johnson & Johnson MedTech, is projected at $62 million to $65 million for the full year 2025. This channel is facing headwinds, reflecting a projected year-over-year decline of 16% to 20% for 2025, largely due to pricing pressure on end-user sales for products like Monovisc and Orthovisc.

Conversely, the Commercial Channel revenue is projected at $47 million to $49.5 million for 2025, representing expected year-over-year growth of 12% to 18%. This channel is fueled by the company's differentiated, globally distributed products.

A major driver within that Commercial Channel is the Regenerative Solutions portfolio. Sales of Regenerative Solutions, which includes the Integrity Implant System and Hyalofast, were up 25% in Q3 2025. Integrity procedures in the U.S. grew for the sixth consecutive quarter, and the product remains on track to more than double procedures and revenue in 2025 compared to 2024.

The revenue derived from the J&J MedTech partnership is complex, consisting of transfer unit revenue and royalties based on J&J MedTech's U.S. net product sales for Monovisc and Orthovisc. To be fair, J&J MedTech exercised its option to extend the current license and supply agreement for Monovisc for another 5-year term through December 2031, which provides a degree of long-term stability to this revenue component.

Here's the quick math on the maintained 2025 guidance by channel:

You can see the strategic pivot in the business model by looking at the growth drivers:

• Regenerative Solutions revenue growth in Q3 2025 was 25%.
• Commercial Channel revenue in Q3 2025 increased 22% year-over-year to $12 million.
• International OA Pain Management revenue grew 21% year-over-year in Q3 2025.
• The company is targeting an Adjusted EBITDA margin for 2025 in the range of positive 3% to negative 3%.

The OEM Channel revenue in Q3 2025 specifically fell 20% to $15.8 million, directly reflecting the lower pricing impacting both transfer units and royalties.