Anika Therapeutics reaches settlement with activist investor Caligan (updated)
13/04/2023 22:44
(Adds details on settlement, background)
By Svea Herbst-Bayliss
BOSTON, April 13 (Reuters) - Anika Therapeutics ANIK.O
reached a settlement with Caligan Partners that includes adding
one of the activist investor's proposed director candidates to
its board.
The biotechnology company, which makes osteoarthritis knee
pain relief injection treatments, said on Thursday it is
appointing former Johnson & Johnson JNJ.N executive Gary
Fischetti as a director and expanding the size of the board to
eight members.
"We look forward to leveraging Gary's expertise as we
execute on our next chapter of growth in pursuit of
accelerated value creation for all stockholders," Chief
Executive Cheryl Blanchard said in a statement.
Fischetti will join two existing board members on a newly
formed capital allocation committee. Six new independent
directors have been appointed to the board since 2018.
Caligan, which owns a nearly 5% stake in Anika, in February
urged the company to consider strategic alternatives including a
full sale. It nominated two director candidates, including
Fischetti.
Anika also announced a $20 million share repurchase program,
replacing a program announced in May 2019.
Under the new program, $5 million will be effected through
an accelerated repurchase program and $5 million will be
purchased in the open market over the next 12 months. The
remaining $10 million will be purchased in the open market over
the next 12 months, subject to the company generating positive
cash flow.
Anika is best known for its viscosupplements, which are
injected into affected joints to reduce pain. Its Monovisc and
Orthovisc viscosupplement products are marketed by a unit of
Johnson & Johnson.
The viscosupplement market is expected to grow significantly
in the coming years, boosted by increased demand for
non-surgical treatments.
(Reporting by Svea Herbst-Bayliss
Editing by Bill Berkrot)
((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))