Company to Focus on Profitable Hyaluronic Acid-Driven OA Pain Management and High Growth Regenerative Solutions Portfolio, Streamline Operations and Enhance Growth Profile
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.
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