Anika Announces Strategic Update of Business with Sale of Arthrosurface and Plan to Divest Parcus Medical
31 Oktober 2024 - 12:00PM
Anika Therapeutics, Inc. (NASDAQ: ANIK), a global joint
preservation company focused on early intervention orthopedics,
today announced the divestiture of its Arthrosurface business and
the intention to divest of the Parcus Medical business. These
decisions are the result of the Company’s ongoing company-wide
strategic review.
Management Commentary
“The goal of our previously announced strategic review is to
drive the most optimal capital allocation structure and focus on
the products that deliver the highest total return on invested
capital and maximize shareholder value. Today’s actions position
Anika to fully focus on our profitable, core hyaluronic acid (HA)
technology, and advance our differentiated and growing Regenerative
Solutions portfolio. The total addressable global market for these
products is estimated to be $4 billion,” said Cheryl R. Blanchard,
Ph.D., President and Chief Executive Officer of Anika
Therapeutics.
Dr. Blanchard continued, “As a part of our robust assessment of
our products, pipeline, and market opportunities, and our
experience operating these businesses in a rapidly changing
environment, we concluded that the Arthrosurface and Parcus
portfolio of products were not an optimal fit for Anika but would
be a welcomed addition for another company. As a part of the
Arthrosurface transaction, we will provide necessary transition
support services through early 2025. We will continue to work with
our advisors to pursue the sale of the Parcus business and will
provide details as appropriate.”
Arthrosurface Sale Completed
The sale of the Company’s Arthrosurface business to Phoenix
Brio, Incorporated closed today, October 31, 2024. The Company
received consideration of $10 million in the form of a ten year
non-interest bearing promissory note for $7 million, and an
estimated $3 million of additional consideration subject to the
sales performance of Arthrosurface. The aggregate consideration
payable in connection with the transaction is subject to customary
post-closing adjustments. Anika and the buyer have agreed to
provide certain support services through early 2025 and are
committed to ensure a continuity of product and high levels of
service to distributors and customers during this time.
Pursuing Sale of Parcus Medical
As part of the comprehensive strategic review, Anika has decided
to pursue the sale of Parcus Medical, our sports medicine business
based in Sarasota, FL. Parcus is a respected competitor in the $3
billion global sports medicine market and has a long-standing
reputation for quality and a broad portfolio of products to treat
various soft tissue injuries, particularly in the shoulder,
hand/wrist, and foot/ankle. Anika does not intend to discuss
developments with respect to the sale process until a transaction
is approved, or disclosure becomes otherwise appropriate.
Advisors
Goodwin Procter served as legal counsel and Piper Sandler acted
as exclusive financial advisor to Anika with respect to the sale of
Arthrosurface. Piper Sandler will act as exclusive financial
advisor to Anika with respect to the potential sale of Parcus
Medical.
About AnikaAnika Therapeutics, Inc. (NASDAQ:
ANIK), is a global joint preservation company that creates and
delivers meaningful advancements in early intervention orthopedic
care. Leveraging our core expertise in hyaluronic acid and implant
solutions, we partner with clinicians to provide minimally invasive
products that restore active living for people around the world.
Our focus is on high opportunity spaces within orthopedics,
including Osteoarthritis Pain Management, Regenerative Solutions,
and Sports Medicine, and our products are efficiently delivered in
key sites of care, including ambulatory surgery centers. Anika’s
global operations are headquartered outside of Boston,
Massachusetts. For more information about Anika, please visit
www.anika.com.
ANIKA, ANIKA THERAPEUTICS, PARCUS MEDICAL, and the Anika logo
are trademarks of Anika Therapeutics, Inc. or its subsidiaries or
are licensed to Anika Therapeutics, Inc. for its use.
Forward-Looking Statements This press release
may contain forward-looking statements, within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, concerning
the Company's expectations, anticipations, intentions, beliefs or
strategies regarding the future which are not statements of
historical fact, including statements in Dr. Blanchard’s quote,
statements regarding our ability to advance our differentiated and
growing Regenerative Solutions portfolio and our core hyaluronic
acid (HA) technology, our potential divesture of the Parcus Medical
business and our ability to close such transaction, obligations
under our agreement for the sale of our Arthrosurface business, and
expectations around the receipt of any payments under such
agreement. These statements are based upon the current beliefs and
expectations of the Company's management and are subject to
significant risks, uncertainties, and other factors. 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, but not limited to, (i) the Company's ability to
successfully commence and/or complete clinical trials of its
products on a timely basis or at all; (ii) the Company's ability to
obtain pre-clinical or clinical data to support domestic and
international pre-market approval applications, 510(k)
applications, or new drug applications, or to timely file and
receive FDA or other regulatory approvals or clearances of its
products; (iii) that such approvals will not be obtained in a
timely manner or without the need for additional clinical trials,
other testing or regulatory submissions, as applicable; (iv) the
Company's research and product development efforts and their
relative success, including whether we have any meaningful sales of
any new products resulting from such efforts; (v) the cost
effectiveness and efficiency of the Company's clinical studies,
manufacturing operations, and production planning; (vi) the
strength of the economies in which the Company operates or will be
operating, as well as the political stability of any of those
geographic areas; (vii) future determinations by the Company to
allocate resources to products and in directions not presently
contemplated; (viii) the Company's ability to successfully
commercialize its products, in the U.S. and abroad; (ix)
the Company's ability to provide an adequate and timely supply of
its products to its customers; and (x) the Company's ability to
achieve its growth targets. Additional factors and risks are
described in the Company's periodic reports filed with
the Securities and Exchange Commission, and they are available
on the SEC's website
at www.sec.gov. Forward-looking statements
are made based on information available to the Company on the date
of this press release, and the Company assumes no obligation to
update the information contained in this press release.
For Investor Inquiries:Anika Therapeutics,
Inc.Matt Hall, 781-457-9554Director, Corporate Development and
Investor Relationsinvestorrelations@anika.com
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