Related Party

12 Months Ended

Dec. 31, 2011

Related Party

17. Related Party

In connection with the acquisition of Anika S.r.l. by Anika on December 30, 2009, Fidia Farmaceutici S.p.A ("Fidia") acquired ownership of 1,981,192 shares of the Company's common stock, or approximately 14.7% of the outstanding shares of the Company as of December 31, 2011 and 2010, respectively, thus becoming a "related party" under the Securities and Exchange Commission regulations.  See Note 16 to the consolidated financial statements for further description of the acquisition.

As part of the acquisition, the Company, primarily through Anika S.r.l., entered into a series of operating agreements with Fidia as follows:

Agreement Type	Description	Term in Years
Lease	Rent of space in Abano Terme, Italy	Six
Finished goods supply	Manufacture and supply of goods	Three
Raw material supply	Hyaluronic acid powder	Five
Services	Finance, administrative, security	One to Six
Accounts receivable	Collection of trade receivables outstanding as of	Two
management	December 30, 2009.
Marketing and Promotion	Promote Anika Srl products in Italy through	Three
	Fidia sales force

Historically Anika S.r.l. has relied on Fidia, its former parent company, for several functional activities.  In connection with the purchase of Anika S.r.l., the Company has negotiated a lease for approximately 26,000 square feet of office, laboratory and warehouse space in Abano Terme, Italy, and a finished goods supply agreement. At December 31, 2011 and 2010, Anika S.r.l. had a net payable to Fidia for past products of approximately $0.8 million and $6.4 million, respectively.