Good day, ladies and gentlemen, and welcome to the second quarter 2009 Anika Therapeutics Investor Conference Call. My name is Clarissa and I will be a coordinator for today. At this time, all participants are in a listen-only mode. We will conduct a question and answer session towards the end of this conference. I would now like to turn the call over to Mr. Kevin Quinlan, Anika’s Chief Financial Officer. Please proceed.

Thank you, Clarissa; and good morning everyone. If you have not received a copy of the Anika news release, which was issued yesterday after the market closed, or would like to be added to our contact list, please contact Sharon Merrill Associates at 617-542-5300. The news release also is posted on Anika Therapeutics’ website at anikatherapeutics.com. Also, I want to mention that we have slides posted on the Anika website that illustrate some of the financial information we will be discussing during today's call. These slides can be found on the Investor Relations section of the site, under the Events, Webcasts, and Presentations tab. We invite you to take a moment to open the file and follow the presentation along with us. Before we begin, please remember that the statements made in this call, which are not statements of historical fact, are forward-looking statements as defined in the Securities Exchange Act of 1934. Words such as will, believe, appear, plan, expect, anticipate, forward, seek, continue, target, goals, objectives, on track, intend, pursue, outlook, as well as other expressions, which are predictions or indications of future events or trends and which do not constitute historical matters, identify forward-looking statements. These statements are based on current beliefs and expectations of management and are subject to significant risks and uncertainties. The Company's actual results could differ materially from any anticipated future results, performance or achievements described in the forward-looking statements as a result of a number of factors, which include those set forth in last evening's press release and the Company's SEC filings. Please move to slide 3 as I turn the call over to Anika's President and Chief Executive Officer, Dr. Charles Sherwood.

Thanks, Kevin; and thank you all for joining us today. We reported another quarter of solid financial performance and operational achievements. We increased both product revenue and total revenue by 5% and joint health revenue grew by 17%. We also reported a 62% gross margin in the quarter. Net income grew 18% to about $1 million and EPS came in at about $0.08 per share. We have a number of initiatives going on at Anika as we execute on our growth strategy and we achieved several of these key milestones during the quarter. For example, we are pleased to have signed Coapt Systems as our new U.S. aesthetic dermatology distribution partner. We also completed the evaluation period for our pivotal trial in the U.S. for MONOVISC, Anika’s single injection osteoarthritis product. I will go into more detail about our progress with MONOVISC and some other exciting growth developments after Kevin reviews the financial results. So with that, I will turn the call back over to Kevin.

Thanks, Chuck. Please turn to slide 4 in the presentation. Based on our first half results and the outlook for the balance of the year, we continue to expect to generate good revenue growth and improved income for 2009. Leveraging our superior HA technology and products and strong trends in the joint health market, we expect that investments we're making will lead to even higher growth in 2010 and beyond. Total revenue in the second quarter grew 5% to $9.5 million. For the first six months of 2009, total revenue increased 6% to $18.7 million. Product revenue grew at a similar rate and the increase was driven by growth of our joint health franchise, which more than offset declines in our veterinary and ophthalmic franchises, which declined 27% and 8% year to date respectively. You may recall that our veterinary business grew 28% last year, and while we anticipate improvement over the second half of the year, we now expect overall veterinary sales to be flat or lower this year than in 2008. Looking in-depth at our joint health franchise, if you turn to slide 5, you will see that joint health revenue increased by 17% to $5.6 million for the second quarter. For the first six months of 2009, joint health revenue was up 21% to $10.7 million. Growth was driven by demand in the U.S. markets, while international sales declined slightly in the quarter, they are up 23% year to date and still expected to do well this year. Domestic sales increased by 28% for the quarter and by 20% for the first six months of 2009. We saw a nice year-over-year in sequential increase in MONOVISC sales in the quarter and we continue to focus on the development and expansion of the product in additional countries. We…

Thank you, Kevin. Let us start with our primary growth engine, joint health. As Kevin mentioned, Anika’s joint health franchise performed well in the second quarter and year-to-date. Our strong domestic performance drove overall product revenue growth in the second quarter and we have strong year-to-date revenue growth both internationally and in the United States. We continue to broaden our market presence in joint health throughout the world. For example, we recently signed a new distributor in France and they performed quite well in the second quarter. We expect international growth from Latin America as we began to sell products in the second quarter and we expect to receive approvals in Argentina, Brazil, and Venezuela late this year and in early 2010. As a reminder, we have a distribution agreement with DePuy Mitek for Latin America. We're also expecting an approval in Taiwan to allow sales of ORTHOVISC there around the same time period. Domestically, unit sales hit an all-time quarterly high, increasing 34% over the second quarter of 2008. This gives us significant reason for optimism that our commercialization partner, DePuy Mitek, will be able to grow market share in the U.S. this year as expected. As I mentioned at the outset of the call, we achieved an important milestone in the second quarter, when we completed the clinical segment of the pivotal U.S. trial for MONOVISC, our first osteoarthritis treatment that can be administered as a single injection. We have very high expectations for MONOVISC, which we believe can be a major product for us, particularly in the United States, the U.S. being the largest market for HA-based visco-supplementation treatments. We are very pleased to complete the six-month evaluation period on schedule, with the last patient visit in June. During the second quarter, we also completed the treatment…

(Operator instructions) And your first question comes from the line of Sean Bebic (ph) of FIG. Please proceed. Sean Bebic – FIG: Good morning, guys.

Hey.

Good morning, Sean. Sean Bebic – FIG: Can you talk little bit about your expectations for Hydrelle sales in the first couple of quarters and do you expect to see a stocking order there from Coapt?

Sure, we would be happy to give you a little bit of insight on that. Yes, there will be a modest stocking order in order to have the inventory on hand. I think our thoughts are that they are going to come out of the gate pretty well, but they are in a position where they are going to be fighting to take market share, so our overall market share expectations are fairly modest in the first year, low -- somewhere in the low single digits likely. Sean Bebic – FIG: Okay. Are there any other dermal fillers on the market right now with lidocaine, or do you know of any that are coming soon?

There are a couple under review at the FDA right now. Certainly internationally, there are some that are being sold. Sean Bebic – FIG: Okay. I noticed the tax rate was pretty low this quarter. Can you talk about that?

Yes, just looking at taking a closer look at the full year and the tax, permit tax items that were expected and so forth, and when we evaluated all that, we felt that we needed to drop the rate a little bit from what we had in Q1 and I think that is a good rate though, the 29%, 30% vicinity to use for the full year now. Sean Bebic – FIG: 29% or 30% for the full year, okay. I guess that is it from me for now. Thanks guys.

Okay, thanks Sean.

(Operator instructions) And there are no further questions. At this time, I would like to turn the call back over to Chuck Sherwood for closing remarks.

Thank you, Clarissa. Well, I guess we did a reasonably good job of explaining the quarter, given the relative lack of questions. So I want to particularly thank everyone for joining us today and we look forward to updating you on our progress in our third-quarter conference call. Thank you.

Thank you.

Thank you for your participation in today's conference. That concludes the presentation. You may now disconnect. Good day.