8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 15, 2004

Anika Therapeutics, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Massachusetts	000-21326	04-3145961
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

160 New Boston Street, Woburn, Massachusetts	01801
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, Including Area Code: (781) 932-6616

No Change Since Last Report

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01:  Entry into a Material Definitive Agreement.

On November 16, 2004, Anika Therapeutics, Inc. (the “Registrant”) issued a press release, which is furnished hereto as Exhibit 99.1 and incorporated by reference as if fully set forth herein, announcing that, among other things, it has hired, effective November 15, 2004, Carol A. Toth, Ph.D. as Vice President Research and Development.  In accordance with the terms of her employment arrangement with the Company, which is evidenced by an offer letter agreement, Dr. Toth has entered into an at-will employment relationship with Anika providing for annual base salary of $225,000.  Dr. Toth was also awarded a grant of 75,000 stock options for Anika Common Stock vesting in equal installments over four years and a signing bonus of $30,000.   Dr. Toth is also entitled to bonus and benefits.  If Dr. Toth’s employment is terminated without cause, the offer letter agreement entitles Dr. Toth to severance in the amount of six months base salary and six months medical benefits.  Dr. Toth is also party to change in control, bonus and severance agreement dated October 6, 2004 pursuant to which she is entitled to receive certain lump sum payments and other financial benefits in the event of a change in control (as defined in the change in control, bonus and severance agreement). In the event of a change in control, and if after such change of control her employment is terminated without cause (as defined in the change in control, bonus and severance agreement), she would likely receive an amount, including all periodic payments, in excess of $100,000.

The offer letter agreement and the change in control, bonus and severance agreements are attached hereto as Exhibit 10.1 and 10.2, respectively, to this report on Form 8-K and is incorporated herein by reference.  This description summarizes certain provisions of the offer letter agreement and change in control, bonus and severance agreement, and is qualified in its entirety by reference to the terms and conditions in the attached documents.

Item 5.02:  Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.

Carol A. Toth, Ph.D., 48, was appointed Vice President Research and Development of the Registrant effective November 15, 2004.  Most recently, Dr. Toth was vice president of research and development at Stryker Biotech, a division of Stryker Corporation, where she managed a 30-person organization responsible for all research, product development and business development activities.  Prior to Stryker Biotech, from 1991 to 1996, Dr. Toth was associate director, pharmaceutical evaluation at T Cell Sciences, Inc. (now AVANT Immunotherapeutics, Inc.).

Item 9.01:  Financial Statements and Exhibits.

(c) Exhibits

Exhibit No.	Description
10.1	Letter Agreement dated October 6, 2004 by and between the Company and Carol A. Toth, Ph.D
10.2	Change in Control, Bonus and Severance Agreement dated October 6, 2004 by and between the Company and Carol A. Toth, Ph.D
99.1	Press Release issued by Anika Therapeutics, Inc. on November 16, 2004

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	ANIKA THERAPEUTICS, INC.
November 19, 2004	By:	/s/ Charles H. Sherwood
		Charles H. Sherwood, Ph.D.
		Chief Executive Officer and President

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Exhibit Index

Exhibit No.	Description
10.1	Letter Agreement dated October 6, 2004 by and between the Company and Carol A. Toth, Ph.D
10.2	Change in Control, Bonus and Severance Agreement dated October 6, 2004 by and between the Company and Carol A. Toth, Ph.D
99.1	Press Release issued by Anika Therapeutics, Inc. on November 16, 2004

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EX-10.1

Exhibit 10.1

October 6, 2004

Ms. Carol A. Toth

345 East Street

East Walpole, MA 02032

Dear Carol:

I am pleased to present our offer to you to join Anika Therapeutics, Inc. (“Anika” or the “Company”) as an employee. The terms of our offer are outlined below:

Position: Vice President Research and Development

Description Of Duties: Serving as an officer and key member of the corporate strategic leadership team, you will have responsibility for the overall research and development function including the development of the Company’s technology plans, as well as responsibility for the regulatory and clinical functions of the Company. You will oversee the design and development of Anika’s products from concept to commercialization, and you will be responsible for managing the Scientific Advisory Board.You also shall be responsible for performing any duties assigned to you by or under the authority of the Company that are appropriate for an individual of your experience.

Reporting To:  Chief Executive Officer and President

Employment Date: Your anticipated start date is as soon as possible.

Rate of Pay: $8,653.85 per bi-weekly payroll (annualized $225,000.00), subject to applicable deductions and withholdings.

Bonus Eligibility:  Under the new compensation plan, yet to be approved by the Compensation Committee, you will be eligible to receive a discretionary annual target bonus of up to 25% of your annualized base salary subject to determination by the Board of Directors and based on the Company’s performance and your personal performance against key objectives.  To be eligible to receive a bonus, you must be a current employee at the time that the bonus is distributed. Your 2004 bonus will be pro-rated based on your 2004 base salary earned.

Stock Options: Shortly after you commence employment, you will be granted an option on 75,000 shares of common stock of the Company, subject to approval by the Compensation Committee of the Board of Directors.

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Carol A. Toth Offer of Employment

Signing Bonus: Anika will pay you in your first paycheck the sum of $30,000 less applicable withholdings, for your accepting the position of Vice President Research and Development.

Benefits: You will be eligible to participate in the Anika employee benefit programs upon commencement of employment. This program currently covers comprehensive medical and dental benefits, life and disability insurance, supplemental disability insurance, and a Section 125 Plan. You will be eligible to participate in our 401(k) Savings and Investment Plan at the first enrollment date following your date of hire. Under the current terms, the 401(k) plan entitles you to contribute up to the maximum limit established by the IRS. The Company will match 100% of your contribution up to 5% of your salary. Your participation in the benefit plans will be governed by and subject to the plan terms as described in the official documents and Summary Plan Descriptions.

Vacation: You will accrue four weeks of vacation during your first year of employment, subject to the terms of accrual and use set forth in Anika’s policies.

Executive MBA Program: Upon completion of one year’s service, you may enroll and the Company agrees to pay 50% of the tuition and fees to a maximum of $50,000.

Severance In The Event Of Termination:

1)Termination without cause (non-performance related): If Anika terminates your employment without “cause” (as construed under Massachusetts common law for employment contracts), Anika will continue your base salary at its then current rate for six months, subject to your compliance with your obligations under your other agreements with the Company and your cooperation with any other reasonable requests by Anika for assistance during that period. In addition, in such circumstances the Company will also pay the premiums for continuation of medical and dental benefits under COBRA for you and your family for six months after termination of your employment (or until the end of COBRA eligibility, if earlier), subject to your premium payment of the active employee share of premium payments for such coverage.

2)Termination for cause: Anika may terminate your employment at any time for cause by delivering to you a certified copy of a resolution of the Board of Directors of Anika finding that you committed an act of omission constituting cause hereunder and specifying the particulars thereof in detail, adopted at a meeting called and held for that purpose and of which you were provided not less than seven days advance notice, including notice of the agenda of such meeting. As used herein, the term “cause” shall mean :

i.conviction of a felony involving the Company,

ii.acting in a manner which is materially detrimental or materially damaging to the Company’s reputation or business operations other than actions which involve your bad judgment or a decision which was taken in good faith, provided that you

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Carol A. Toth Offer of Employment

shall have failed to remedy such action within ten days after receiving written notice of the Company’s position with respect to such action; or

iii.committing any material breach of this agreement, provided that, if such breach is capable of being remedied, you shall have failed to remedy such breach within ten days after your receipt of written notice requesting that you remedy such breach.

Change in Control and Severance Agreement: Subject to the approval of the Compensation Committee of the Board of Directors, an Agreement (attached) between you and Anika Therapeutics, Inc. shall be executed providing terms pertaining to a Change in Control. The purpose of this Agreement is to reinforce and encourage your continued attention and dedication to your assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a Change in Control.

Non-Disclosure and Non-Competition Agreement:  You understand that as a condition of your employment, you will be required to execute Anika’s Non-Disclosure and Non-Competition Agreement, a copy of which is enclosed.  You further understand that the Anika Non-Disclosure and Non-Competition Agreement contains conditions that will survive the termination of your employment, regardless of the reason for that termination.

Arbitration: In the event of any controversy or claim arising out of or relating to this letter agreement or otherwise arising out of your employment or the termination of that employment (including, without limitation, any claims of unlawful employment discrimination whether based on age or otherwise), that controversy or claim shall, to the fullest extent permitted by law, be settled by arbitration under the auspices of the American Arbitration Association (“AAA”) in Boston, Massachusetts in accordance with the Employment Dispute Resolution Rules of the AAA, including, but not limited to, the rules and procedures applicable to the selection of arbitrators (or alternatively, in any other forum or in any other form agreed upon by the parties). In the event that any person or entity other than you or Anika may be a party with regard to any such controversy or claim, such controversy or claim shall be submitted to arbitration subject to such other person or entity’s agreement. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. This provision shall be specifically enforceable. Notwithstanding the foregoing, this provision shall not preclude either party from pursuing a court action for the sole purpose of obtaining a temporary restraining order or a preliminary injunction in circumstances in which such relief is appropriate; provided that any other relief shall be pursued through an arbitration proceeding pursuant to this provision.

Background Check: You understand and agree that all employees are subject to a background check including verification of education.  I enclose a waiver in this regard for your signature.

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Carol A. Toth Offer of Employment

At-Will Employment:  You, like everyone else at Anika, will be an at-will employee. The terms of your employment will be interpreted in accordance with and governed by the laws of the Commonwealth of Massachusetts.

Representation Regarding Other Agreements:  Finally, this offer is conditioned on your representation that you are not subject to any confidentiality or non-competition agreement or any other similar type of restriction that would affect your ability to devote full time and attention to your work at Anika Therapeutics, Inc. Upon commencement of your employment, you will be required to provide evidence that you are a U.S. citizen or national, a lawful permanent resident, or an alien authorized to work in the U.S.

If the terms of this offer are acceptable, please indicate your acceptance by signing both copies of this letter, the Anika Non-Disclosure and Non-Competition Agreement and the background check waiver and return one copy of each to me. I am very enthusiastic about Anika’s future prospects and look forward to your leadership and contribution to the Anika team.

This offer is valid until October 11, 2004.

Sincerely,

/s/ Charles H. Sherwood

Charles H. Sherwood, Ph.D.

Chief Executive Officer and President

Agreed and accepted:

/s/ Carol A. Toth

Carol A. Toth

Date: 10/11/04

Enclosures

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EX-10.2

Exhibit 10.2

ANIKA THERAPEUTICS, INC.

Form of Change in Control, Bonus and Severance Agreement

AGREEMENT made as of October 6, 2004 by and among Anika Therapeutics, Inc., a Massachusetts corporation with its principal place of business in Woburn, Massachusetts (the “Company”), and Carol A. Toth, of East Walpole, Massachusetts (the “Executive”), an individual presently employed as the  Senior Vice President Marketing and Business Development of the Company.

1.             Purpose.  The Company considers it essential to the best interests of its stockholders to foster the continuous employment of key management personnel.  The Board of Directors of the Company (the “Board”) recognizes, however, that, as is the case with many publicly held corporations, the possibility of a Change in Control (as defined in Section 2 hereof) exists and that such possibility, and the uncertainty and questions which it may raise among management, may result in the departure or distraction of management personnel to the detriment of the Company and its stockholders.  Therefore, the Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company’s management, including the Executive, to their assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a Change in Control.  Nothing in this Agreement shall be construed as creating an express or implied contract of employment and, except as otherwise agreed in writing between the Executive and the Company, the Executive shall not have any right to be retained in the employ of the Company.

2.             Change in Control.  A “Change in Control” shall mean the occurrence of any one of the following events:

(a)           any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Act”) (other than the Company, any of its subsidiaries, any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company or any of its subsidiaries), together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing 51% or more of the combined voting power of the Company’s then outstanding securities having the right to vote in an election of the Company’s Board of Directors (“Voting Securities”); or

(b)           persons who, as of the date hereof, constitute the Company’s Board of Directors (the “Incumbent Directors”) cease for any reason, including, without limitation, as a result of a tender offer, proxy contest, merger or similar transaction, to constitute at least a majority of the Board, provided that any person becoming a director of the Company subsequent to the date hereof whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors shall, for purposes of this Agreement, be considered an Incumbent Director; or

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(c)           the stockholders of the Company shall approve (A) any consolidation or merger of the Company where the shareholders of the Company, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, shares representing in the aggregate 51% of the voting shares of the corporation issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any), (B) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company or (C) any plan or proposal for the liquidation or dissolution of the Company.

Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred for purposes of the foregoing clause (a) solely as the result of an acquisition of securities by the Company which, by reducing the number of shares of Voting Securities outstanding, increases the proportionate voting power represented by the Voting Securities beneficially owned by any person to 51% or more of the combined voting power of all then outstanding Voting Securities; provided, however, that if any person referred to in this sentence shall thereafter become the beneficial owner of any additional shares of Voting Securities (other than pursuant to a share split, stock dividend or similar transaction or direct purchase from the Company), then a “Change in Control” shall be deemed to have occurred for purposes of the foregoing clause (a).

3.             Terminating Event.  A “Terminating Event” shall mean any of the events provided in this Section 3 occurring within twelve (12) months subsequent to a Change in Control as defined in Section 2:

(a)           termination by the Company of the employment of the Executive with the Company for any reason other than for Cause or the death of the Executive.  “Cause” shall mean, and shall be limited to, the occurrence of any one or more of the following events:

(i)            a willful act of dishonesty by the Executive with respect to any matter involving the Company;

(ii)           conviction of the Executive of a crime involving moral turpitude; or

(iii)          the deliberate or willful failure by the Executive (other than by reason of the Executive’s physical or mental illness, incapacity or disability) to substantially perform the Executive’s duties with the Company and the continuation of such failure for a period of 30 days after delivery by the Company to the Executive of written notice specifying the scope and nature of such failure and its intention to terminate the Executive for Cause.

A Terminating Event shall not be deemed to have occurred pursuant to this Section 3(a) solely as a result of the Executive being an employee of any direct or indirect successor to the business or assets of the Company, rather than continuing as an employee of the Company following a Change in Control.

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(b)           termination by the Executive of the Executive’s employment with the Company for Good Reason.  “Good Reason” shall mean the occurrence of any of the following events:

(i)            a substantial adverse change in the nature or scope of the Executive’s responsibilities or duties from the responsibilities or duties exercised by the Executive immediately prior to the Change in Control, it being understood by the parties hereto, that so long as the Executive retains primary research and development responsibilities for the business conducted by Anika immediately prior to the Change in Control, Good Reason shall not exist under this Section 3(b)(i); or

(ii)           a reduction in the Executive’s annual base salary and/or benefits as in effect on the date hereof or as the same may be increased from time to time except for across-the-board salary and/or benefits reductions similarly affecting all or substantially all management employees.

For purposes of this Section 3, unless the context otherwise requires, Company shall mean the Company or any successor thereto or to the business thereof in a transaction involving a Change in Control.

4.             Special Termination Payments.  In the event a Terminating Event occurs within twelve (12) months after a Change in Control in lieu of any payments under the Employment Letter (as hereinafter defined),

(a)           the Company shall pay to the Executive, in addition to the payment, if any, required by Section 5, an amount equal to 100% of the Executive’s annual salary as in effect immediately prior to the Change in Control, said amount shall be paid in one lump sum payment no later than thirty-one (31) days following the Date of Termination (as such term is defined in Section 9(b)); and

(b)           the Company shall continue to provide health, dental, long-term disability, life insurance and other fringe benefits to the Executive, on the same terms and conditions (including any required co­-payments) as though the Executive had remained an active employee, for twelve (12)months; and

(c)           to the extent permitted under applicable documents, the Company shall provide COBRA benefits to the Executive following the end of the period referred to in Section 4(b) above, such benefits to be determined as though the Executive’s employment had terminated at the end of such period.

5.             Payment Upon Effective Date of Change in Control.  Upon the effective date of a Change in Control, regardless of whether a Terminating Event has occurred, in addition to any other payment required by Section 4, the Company shall pay the Executive an amount in cash representing fifty percent (50%) of the Executive’s annual salary as in effect immediately prior to

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the Change in Control.  Said amount shall be paid in one lump sum payment no later than thirty-one (31) days following the effective date of a Change in Control.

6.             Certain Limitations.  It is the intention of the Executive and of the Company that no payments by the Company to or for the benefit of the Executive under this Agreement or any other agreement or plan, if any, pursuant to which the Executive is entitled to receive payments or benefits shall be nondeductible to the Company by reason of the operation of Section 280G of the Code relating to parachute payments or any like statutory or regulatory provision.  Accordingly, and notwithstanding any other provision of this Agreement or any such agreement or plan, if by reason of the operation of said Section 280G or any like statutory or regulatory provision, any such payments exceed the amount which can be deducted by the Company, such payments shall be reduced to the maximum amount which can be deducted by the Company.  To the extent that payments exceeding such maximum deductible amount have been made to or for the benefit of the Executive, such excess payments shall be refunded to the Company with interest thereon at the applicable Federal rate determined under Section 1274(d) of the Code, compounded annually, or at such other rate as may be required in order that no such payments shall be nondeductible to the Company by reason of the operation of said Section 280G or any like statutory or regulatory provision.  To the extent that there is more than one method of reducing the payments to bring them within the limitations of said Section 280G or any like statutory or regulatory provision, the Executive shall determine which method shall be followed, provided that if the Executive fails to make such determination within forty-five (45) days after the Company has given notice of the need for such reduction, the Company may determine the method of such reduction in its sole discretion.

7.             Term.  This Agreement shall take effect on the date first set forth above and shall terminate upon the earliest of (a) the termination by the Company of the employment of the Executive for Cause; (b) the cessation of the Executive’s employment with the Company for any reason or the resignation or termination of the Executive for any reason, in each case, prior to a Change in Control; or (c) the resignation of the Executive after a Change in Control for any reason other than for Good Reason.

8.             Withholding.  All payments made by the Company under this Agreement shall be net of any tax or other amounts required to be withheld by the Company under applicable law.

9.        Notice and Date of Termination; Disputes; Etc.

(a)           Notice of Termination.  After a Change in Control and during the term of this Agreement, any purported termination of the Executive’s employment (other than by reason of death) shall be communicated by written Notice of Termination from one party hereto to the other party hereto in accordance with this Section 9.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and the Date of Termination.  Further, a Notice of Termination for Cause is required to include a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board (exclusive of the Executive) at a meeting of the Board (after reasonable notice to the Executive and an opportunity for the Executive, accompanied by the Executive’s counsel, to be heard before

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the Board) finding that, in the good faith opinion of the Board, the termination met the criteria for Cause set forth in Section 3(a) hereof.

(b)           Date of Termination.  “Date of Termination,” with respect to any purported termination of the Executive’s employment after a Change in Control and during the term of this Agreement, shall mean the date specified in the Notice of Termination.  In the case of a termination by the Company other than a termination for Cause (which may be effective immediately), the Date of Termination shall not be less than 30 days after the Notice of Termination is given.  In the case of a termination by the Executive, the Date of Termination shall not be less than 15 days from the date such Notice of Termination is given.  Notwithstanding Section 3(a) of this Agreement, in the event that the Executive gives a Notice of Termination to the Company, the Company may unilaterally accelerate the Date of Termination and such acceleration shall not result in a second Terminating Event for purposes of Section 3(a) of this Agreement.

(c)           No Mitigation.  The Company agrees that, if the Executive’s employment by the Company is terminated during the term of this Agreement, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to Sections 4 and 5 hereof.  Further, the amount of any payment provided for in this Agreement shall not be reduced by any compensation earned by the Executive as the result of employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by the Executive to the Company, or otherwise.

(d)           Mediation of Disputes.  The parties shall endeavor in good faith to settle within 90 days any controversy or claim arising out of or relating to this Agreement or the breach thereof through mediation with J.A.M.S./Endispute or similar organizations.  If the controversy or claim is not resolved within 90 days, the parties shall be free to pursue other legal remedies in law or equity.

10.           Assignment; Prior Agreements; Non-Solicitation.  Except for an assignment by the Company in connection with a Change in Control in which the successor, if other than the Company, shall assume and agree to perform this Agreement in writing, neither the Company nor the Executive may make any assignment of this Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of the other party, and without such consent any attempted transfer shall be null and void and of no effect.  This Agreement shall inure to the benefit of and be binding upon the Company and the Executive, their respective successors, executors, administrators, heirs and permitted assigns.  In the event of the Executive’s death after a Terminating Event but prior to the completion by the Company of all payments due him under Sections 4 and 5 of this Agreement, the Company shall continue such payments to the Executive’s beneficiary designated in writing to the Company prior to his death (or to his estate, if the Executive fails to make such designation).  This Agreement supercedes all prior Agreements, whether written or oral with respect to the subject matter hereof.  Notwithstanding the foregoing that certain Non-Disclosure and Non-Competition Agreement of March 17, 2003, by and between Executive and the Company shall remain in full force and effect in accordance with its terms.

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Executive covenants to the Company that during his employment with the Company and until one (1) year from the date he is no longer employed by the Company, any affiliate thereof or any successor thereto, he will not in any manner, on his own behalf, or as a partner, officer, director, employee, agent or entity, directly or indirectly, induce or attempt to influence any person serving as an employee of the Company or any successor thereto to leave its employ or hire any such person.

11.           Enforceability.  If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

12.           Waiver.  No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party.  The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

13.           Notices.  Any notices, requests, demands, and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by registered or certified mail, postage prepaid, to the Executive at the last address the Executive has filed in writing with the Company, or to the Company at its main office, attention of the Board of Directors.

14.           Effect on Other Plans.  Except as provided in Section 10 hereof, nothing in this Agreement shall be construed to limit the rights of the Executive under the Company’s benefit plans, programs or policies.

15.           Amendment.  This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized representative of the Company.

16.           Governing Law.  This is a Massachusetts contract and shall be construed under and be governed in all respects by the laws of the Commonwealth of Massachusetts.

17.           Obligations of Successors.  In addition to any obligations imposed by law upon any successor to the Company, the Company will use its commercially reasonable efforts to require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

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IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by the Company by their duly authorized officers and by the Executive, as of the date first above written.

:		COMPANY:
		ANIKA THERAPEUTICS, INC.
	By:	/s/ Charles H. Sherwood
		Charles H. Sherwood, Ph.D.
		President and Chief Executive Officer
		EXECUTIVE
		/s/ Carol A. Toth
		Carol A. Toth

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EX-99.1

                                                                                                           NEWS RELEASE

Contacts:
Anika Therapeutics, Inc.	PondelWilkinson Klein
Charles Sherwood, Ph.D., CEO	Susan Klein (508) 358-4315
(781) 932-6616	Rob Whetstone (310) 279-5963

ANIKA THERAPEUTICS ANNOUNCES ADDITION OF CAROL TOTH, Ph.D.,

AS VICE PRESIDENT OF RESEARCH AND DEVELOPMENT

WOBURN, Mass. — November 16, 2004 — Anika Therapeutics, Inc. (NASDAQ:ANIK) today announced the appointment of Carol Ann Toth, Ph.D., as vice president of research and development.  Dr. Toth will be responsible for leading the R&D team at Anika, managing the two clinical studies currently ongoing at the company and becoming an integral part of the management team developing the company’s strategic growth plan.

Most recently, Dr. Toth was vice president of research and development at Stryker Biotech, a division of Stryker Corporation, where she managed a 30-person organization responsible for all research, product development and business development activities.  During her tenure at Stryker Biotech, Dr. Toth was instrumental in achieving approvals for a first-in-class biologic drug/device combination product for orthopedic tissue regeneration by the FDA, EMAE, Health Canada and TGA.  She also was charged with overseeing budgeting, planning and resource allocation for the company’s biotech division while developing second-generation products aimed at enhancing product performance, increasing manufacturing capacity and reducing costs.  Prior to Stryker Biotech, from 1991 to 1996, Dr. Toth was associate director, pharmaceutical evaluation at T Cell Sciences, Inc. (now AVANT Immunotherapeutics, Inc.).

“Dr. Toth joins Anika with particular expertise in orthopedics and proficiency in leading multiple collaborative preclinical development projects and subsequent clinical trials leading to product registration in the U.S. and abroad,” said Charles H. Sherwood, Ph.D., president and chief executive officer.  “She has an impeccable track record of successful product development and we believe her leadership will significantly strengthen and enhance our management team.  This is an exciting time for the company and we are delighted to have her aboard.”

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Dr. Toth began her career as a scientist and academic.  She has held a variety of positions, last serving as assistant professor, Department of Surgery, Harvard Medical School.  During her 12-year academic career, Dr. Toth was principal investigator for multiple NIH research grants and led various industrial research collaborations including projects with E.I. Dupont de Nemours, Inc. and Polaroid Corp.  Dr. Toth earned a doctorate degree in cellular immunology from Boston University School of Medicine and bachelor of science degree, cum laude, from Fairfield University.  She also holds ten U.S. patents.

About Anika Therapeutics, Inc.

Headquartered in Woburn, Mass., Anika Therapeutics, Inc. (www.anikatherapeutics.com) develops, manufactures and commercializes therapeutic products and devices intended to promote the repair, protection and healing of bone, cartilage and soft tissue.  These products are based on hyaluronic acid (HA), a naturally occurring, biocompatible polymer found throughout the body.  Anika products include OrthoVisc^®, a treatment for osteoarthritis of the knee available internationally and marketed in the U.S. by Ortho Biotech Products, L.P., and Hyvisc^®, a treatment for equine osteoarthritis marketed in the U.S. by Boehringer Ingelheim Vetmedica, Inc.  Anika manufactures Amvisc^™ and Amvisc Plus^™, HA viscoelastic products for ophthalmic surgery, for Bausch & Lomb.  It also produces CoEase^™, which is marketed by Advanced Medical Optics, Inc., STAARVISC^™-II distributed by STAAR Surgical Company and Shellgel^™ for Cytosol Ophthalmics, Inc.

The statements made in this press release which are not statements of historical fact are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Forward-looking statements involve known and unknown risks, uncertainties and other factors.  The words “will,” “seek,” and other expressions which are predictions of or indicate future events and trends and which do not constitute historical matters such as statements regarding the Company’s efforts to broaden its franchises, its efforts with respect to its hyaluronic acid technology and expectations of performance of its vice president of operations, identify forward-looking statements.  All statements, other than statements of historical facts, are forward-looking statements based in the current beliefs and assumptions 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, including the risk that the Company’s efforts to enter into long-term strategic relationships will not be successful or that the Company does not achieve any additional or significant sales from such relationships and the risk that the Company is unable to expand its product portfolio and revenue base to the extent intended.  Certain other factors that might cause the Company actual results to differ materially from those in the forward-looking statements include those set forth under the headings “Business,” “Risk Factors and Certain Factors Affecting Future Operating Results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in each of the Company’s Annual Report on Form 10-K for the year ended December 31, 2003, Quarterly Report on Form 10-Q for the quarter ended September 30, 2004,  and Current Reports on Form 8-K, as well as those described in the Company’s other press releases and SEC filings.

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