Anika Therapeutics Inc., (NASDAQ: Anik), Woburn, Mass., announced it has signed an exclusive multi-year marketing and distribution agreement with Zimmer Inc., a billion-dollar subsidiary of Bristol-Myers Squibb (NYSE:BMY).

Zimmer will represent Anika's ORTHOVISC product, sodium hyaluronate for injection, for the treatment of osteoarthritis of the knee in the U.S., Canada and select Asia-Pacific markets. The deal is potentially worth up to $23 million.

Zimmer paid Anika $2.5 million at signing and is obligated to pay up to an additional $20.5 million contingent upon the attainment of certain regulatory and sales milestones. According to terms of the agreement, the two companies will share in the revenues generated by Zimmer's sales and marketing efforts and Anika will exclusively manufacture ORTHOVISC for Zimmer.

ORTHOVISC is used to treat osteoarthritis using a therapy called viscosupplementation. The natural knee is surrounded by synovial fluid, which contains hyaluronic acid (HA), which helps coat and lubricate the joint. ORTHOVISC is designed to emulate the viscoclastic and cushioning properties of natural HA.

ORTHOVISC has been cleared for marketing in Canada, where Zimmer will have distribution rights. Registrations for marketing approval have also been filed in Australia and New Zealand. Anika recently completed a pivotal clinical study and plans to file by the end of this year with the U.S. Food and Drug Administration for clearance to market the product in the U.S. [[In-content Ad]]