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Note 15 - Revenue by Product Group, by Significant Customer and by Geographic Location; Geographic Information
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
15.
Revenue by Product Group, by Significant Customer and by Geographic Location; Geographic Information
 
Product revenue by product group is as follows:
 
    Years Ended December 31,
    2016   2015   2014
    Revenue   Percentage
of Product
Revenue		   Revenue   Percentage
of Product
Revenue		   Revenue   Percentage
of Product
Revenue
Orthobiologics   $
89,695
      
87
 %   $
73,247
      
84
 %   $
61,957
      
82
 %
Dermal    
2,759
      
3
 %    
2,266
      
2
 %    
1,334
      
2
 %
Surgical    
5,427
      
5
 %    
5,812
      
7
 %    
5,855
      
8
 %
Other    
5,051
      
5
 %    
6,371
      
7
 %    
6,328
      
8
 %
    $
102,932
      
100
 %   $
87,696
      
100
 %   $
75,474
      
100
 %
 
Product revenue from our sole significant customer, Mitek, as a percentage of our total product revenue was
75%,
72%,
and
72%
for the years ended
December
31,
2016,
2015,
and
2014,
respectively.
 
In
December
2011,
the Company entered into a
fifteen
-year licensing agreement (the “Mitek MONOVISC Agreement”) with DePuy Synthes Mitek Sports Medicine, a division of DePuy Orthopaedics, Inc., to exclusively market MONOVISC in the U.S. The Company received an upfront payment of
$2.5
million in
December
2011.
This non-refundable upfront payment did not have standalone value without Anika’s completion of development obligations, which included obtaining regulatory approval of the product and resolving the related patent litigation. As a result, the Company recognized the upfront payment over the development obligation period. During the
first
quarter of
2014,
the Company received FDA approval of MONOVISC and resolved the patent lawsuit with Genzyme Corporation. As a result of the full delivery of its development obligations under this agreement, the Company recognized approximately
$2.2
million, which represented the remaining balance of deferred revenue relating to the initial
$2.5
million payment. In the
first
quarter of
2014,
the Company also received a milestone payment of
$17.5
million as a result of achieving FDA approval for MONOVISC and resolving the patent litigation with Genzyme. This milestone payment was fully recognized as revenue during the
three
months ended
March
31,
2014.
On
April
15,
2014
the
first
U.S. commercial sale of MONOVISC was made by the Company’s commercial partner, Mitek. Under the terms of the Mitek MONOVISC Agreement, the Company earned and collected a milestone payment of
$5
million, which was fully recognized as revenue in the
second
quarter of
2014.
On
November
10,
2014,
the Center for Medicare & Medicaid Services ("CMS") assigned a unique Healthcare Common Procedure Coding System ("HCPCS") code, or J-Code, to MONOVISC. The issuance of this code by CMS set national Medicare reimbursement rates for the product. The new J-Code became effective on
January
1,
2015.
As a result of CMS assigning the J-Code, the Company collected a milestone payment of
$5.0
million, which was fully recognized as revenue in the
fourth
quarter of
2014.
During the
fourth
quarter of
2015,
the Company collected and fully recognized revenue for a milestone payment of
$5.0
million as a result of U.S. MONOVISC
12
month rolling end-user sales exceeding
$50
million. For the year ended
December
31,
2015,
the Company recognized a total of
$5.0
million in milestone revenue related to MONOVISC. The Company did not recognize any milestone revenue associated with this contract for the year ended
December
31,
2016.
 
Total revenue by geographic location based on the location of the customer in total and as a percentage of total revenue are as follows:
 
    Years Ended December 31,
    2016   2015   2014
    Total
Revenue		   Percentage of
Revenue		   Total
Revenue		   Percentage of
Revenue		   Total
Revenue		   Percentage of
Revenue
Geographic Location:                                                
United States   $
83,972
      
81
 %   $
76,621
      
82
 %   $
92,259
      
87
 %
Europe    
10,953
      
11
 %    
8,756
      
9
 %    
6,215
      
6
 %
Other    
8,454
      
8
 %    
7,622
      
9
 %    
7,121
      
7
 %
Total   $
103,379
      
100
 %   $
92,999
      
100
 %   $
105,595
      
100
 %
 
The Company recorded licensing, milestone, and contract revenue of
$0.4
million,
$5.3
million and
$30.1
million for the years ended
December
 
31,
2016,
2015,
and
2014,
respectively. Substantially all licensing, milestone, and contract revenue was derived in the United States for each year presented.
 
Net long-lived assets, consisting of net property and equipment, are subject to geographic risks because they are generally difficult to move and to effectively utilize in another geographic area in a reasonable time period and because they are relatively illiquid. See Note
11,
Commitments and Contingencies
, for more information regarding the build-to-suit lease agreement with Zip resulting in an increase in net property and equipment in Italy. Net tangible long-lived assets by principal geographic areas are as follows:
 
    Years Ended December 31,
    2016   2015
United States   $
49,140
     $
39,732
  
Italy    
3,156
      
376
  
Total   $
52,296
     $
40,108