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Anika Announces Strategic Update of Business with Sale of Arthrosurface and Plan to Divest Parcus Medical

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Anika Therapeutics (NASDAQ: ANIK) announced strategic changes including the sale of Arthrosurface and plans to divest Parcus Medical. The company sold Arthrosurface to Phoenix Brio for $10 million, comprising a $7 million ten-year non-interest bearing note and up to $3 million in performance-based consideration. The company will now focus on its core hyaluronic acid technology and Regenerative Solutions portfolio, targeting a $4 billion total addressable market. Support services will continue through early 2025 to ensure product continuity. The Parcus Medical divestiture process is ongoing, with the business operating in the $3 billion global sports medicine market.

Anika Therapeutics (NASDAQ: ANIK) ha annunciato cambiamenti strategici che includono la vendita di Arthrosurface e piani per dismettere Parcus Medical. L'azienda ha venduto Arthrosurface a Phoenix Brio per $10 milioni, comprendente un'obbligazione non fruttifera di $7 milioni a dieci anni e fino a $3 milioni in considerazioni basate sulle prestazioni. Ora, l'azienda si concentrerà sulla sua tecnologia a base di acido ialuronico e sul portafoglio di Soluzioni Rigenerative, mirando a un mercato totale indirizzabile di $4 miliardi. I servizi di supporto continueranno fino all'inizio del 2025 per garantire la continuità del prodotto. Il processo di dismissione di Parcus Medical è in corso, con l'attività che opera nel mercato globale della medicina sportiva di $3 miliardi.

Anika Therapeutics (NASDAQ: ANIK) anunció cambios estratégicos que incluyen la venta de Arthrosurface y planes para desinvertir Parcus Medical. La compañía vendió Arthrosurface a Phoenix Brio por $10 millones, que comprende un pagaré sin interés de $7 millones a diez años y hasta $3 millones en consideraciones basadas en el rendimiento. La empresa se centrará ahora en su tecnología de ácido hialurónico y en su cartera de Soluciones Regenerativas, apuntando a un mercado total direccionable de $4 mil millones. Los servicios de apoyo continuarán hasta principios de 2025 para garantizar la continuidad del producto. El proceso de desinversión de Parcus Medical está en curso, con el negocio funcionando en el mercado global de medicina deportiva de $3 mil millones.

아니카 테라퓨틱스 (NASDAQ: ANIK)는 Arthrosurface의 매각 및 Parcus Medical의 매각 계획을 포함한 전략적 변화를 발표했습니다. 이 회사는 Arthrosurface를 Phoenix Brio에 $1천만에 매각했으며, 이는 10년 무이자 지급 약속 $700만과 최대 $300만의 성과 기반 보상으로 구성됩니다. 이 회사는 이제 핵심 히알루론산 기술과 재생 솔루션 포트폴리오에 집중하며, 40억 달러의 총 주소 지정 가능 시장을 목표로 하고 있습니다. 제품의 연속성을 보장하기 위해 지원 서비스는 2025년 초까지 계속됩니다. Parcus Medical의 매각 과정은 진행 중이며, 이 사업은 30억 달러의 글로벌 스포츠 의학 시장에서 운영되고 있습니다.

Anika Therapeutics (NASDAQ: ANIK) a annoncé des changements stratégiques y compris la vente d'Arthrosurface et des projets de désinvestissement de Parcus Medical. La société a vendu Arthrosurface à Phoenix Brio pour 10 millions USD, comprenant une note sans intérêt de 7 millions USD sur dix ans et jusqu'à 3 millions USD de considérations basées sur la performance. L'entreprise se concentrera désormais sur sa technologie à base de l'acide hyaluronique et son portefeuille de solutions régénératives, visant un marché total adressable de 4 milliards USD. Les services de soutien continueront jusqu'au début de 2025 pour assurer la continuité des produits. Le processus de désinvestissement de Parcus Medical est en cours, l'activité opérant sur le marché mondial de la médecine du sport de 3 milliards USD.

Anika Therapeutics (NASDAQ: ANIK) hat strategische Veränderungen angekündigt, darunter den Verkauf von Arthrosurface und Pläne zur Veräußerung von Parcus Medical. Das Unternehmen verkaufte Arthrosurface an Phoenix Brio für 10 Millionen USD, was eine 7 Millionen USD schwere 10-jährige zinsfreie Note und bis zu 3 Millionen USD leistungsbasierte Vergütung umfasst. Das Unternehmen wird sich nun auf seine Kerntechnologie Hyaluronsäure und das Portfolio Regenerative Lösungen konzentrieren und zielt auf einen gesamtadressierbaren Markt von 4 Milliarden USD ab. Unterstützungsdienste werden bis Anfang 2025 fortgesetzt, um die Produktkontinuität zu gewährleisten. Der Veräußigungsprozess von Parcus Medical ist im Gange, wobei das Geschäft im 3 Milliarden USD globalen Markt für Sportmedizin tätig ist.

Positive
  • Sale of Arthrosurface for $10 million total consideration
  • Strategic focus on profitable core HA technology and Regenerative Solutions
  • Large addressable market of $4 billion for core products
Negative
  • Non-cash consideration for Arthrosurface sale (10-year non-interest bearing note)
  • Part of consideration ($3M) is contingent on future sales performance
  • Restructuring and transition costs through early 2025

Insights

The strategic divestiture signals a significant shift in Anika's business model, focusing on their core HA technology and Regenerative Solutions portfolio targeting a $4 billion addressable market. The sale of Arthrosurface for $10 million through a structured deal ($7 million promissory note and $3 million performance-based consideration) appears modest but eliminates underperforming assets. The planned Parcus Medical divestiture further streamlines operations, potentially improving operational efficiency and capital allocation.

While the immediate financial impact may seem , this restructuring could enhance long-term profitability and shareholder value by concentrating resources on higher-margin HA products. The non-interest bearing nature of the promissory note and extended 10-year term suggests some risk in the transaction structure, requiring careful monitoring of the buyer's performance.

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

BEDFORD, Mass., Oct. 31, 2024 (GLOBE NEWSWIRE) -- 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 Anika
Anika 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, 781-457-9554
Director, Corporate Development and Investor Relations
investorrelations@anika.com


FAQ

What is the value of Anika's (ANIK) Arthrosurface sale to Phoenix Brio?

Anika sold Arthrosurface for $10 million total consideration, consisting of a $7 million ten-year non-interest bearing promissory note and up to $3 million in performance-based payments.

What is the size of the market Anika (ANIK) is targeting after the divestiture?

After the divestiture, Anika is targeting a $4 billion total addressable global market for its hyaluronic acid technology and Regenerative Solutions portfolio.

When will Anika (ANIK) complete the transition services for Arthrosurface?

Anika will provide transition support services for Arthrosurface through early 2025.

What is the market size for Anika's (ANIK) Parcus Medical business?

Parcus Medical operates in the $3 billion global sports medicine market.

Anika Therapeutics Inc

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Drug Manufacturers - Specialty & Generic
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