BWS Financial analyst Hamed Khorsand initiated coverage of Anika Therapeutics with a Sell rating and $29 price target. The company could face declining revenue in coming quarters as its main source of revenue experiences eroding prices, Khorsand tells investors in a research note. He believes it is becoming evident that Anika benefited from "one-time pricing event in recent quarters that is not likely to duplicate in future quarters." The company's partner, DePuy Synthes, is once again reporting ORTHOVISC and MONOVISC prices to the Centers for Medicare and Medicaid Services, which poses to reduce Anika's revenue, says Khorsand.

BTIG notes that seven Medicare Administrative Contractors, or MACs - CGS, WPS, NGS, Palmetto, Novitas, First Coast, and Noridian - this morning published new proposed local coverage determinations, or LCDs, regarding the coverage of skin substitutes grafts and cellular and tissue based products for the treatment of diabetic foot ulcers, or DFUs, and venous leg ulcers, or VLUs. This marks "the second attempt in the past 12 months where MACs have proposed an LCD that would drastically shake up the advanced wound care market," says the analyst, who highlights that the proposed LCD includes non-coverage products from Integra Lifesciences (IART), Organogenesis (ORGO), Smith & Nephew (SNN), MiMedx (MDXG), Anika Therapeutics (ANIK) and numerous smaller, private wound care companies. The firm adds that it thinks Integra and Organogenesis both have meaningful exposure to the LCDs based on their product portfolio and the revenue mix within their Advanced Wound Care businesses.