Caligan pushes ahead with board challenge at Anika, nominates two directors (updated)
27/03/2023 21:55
(Updates with statement from company)
By Svea Herbst-Bayliss
NEW YORK, March 27 (Reuters) - Activist investor Caligan
Partners has nominated two director candidates to Anika
Therapeutics' ANIK.O seven member board, according to a
regulatory filing on Monday, signaling plans to push ahead with
a board challenge at the biotechnology company.
The investment firm, which owns a roughly 4% stake and is
one of Anika's 10 biggest shareholders, named former Johnson &
Johnson executive Gary Fischetti and former healthcare
technology executive and experienced board member James Hogan as
its candidates, according to the filing.
Anika board directors Susan Vogt and John Henneman will
stand for re-election this year.
Caligan is urging the company to consider strategic
alternatives including a full sale.
The company said in a statement that it "fundamentally
repositioned Anika to be a global leader in joint preservation"
and that it has "expanded Anika’s market opportunity from $1
billion to more than $8 billion today."
Investors will be asked to vote for directors at the annual
meeting later this year unless the two sides reach a compromise.
Anika is best known for its viscosupplement portfolio,
including Monovisc and Orthovisc, marketed by Johnson & Johnson
JNJ.N . This month, the company reported a net loss of $14.9
million for 2022 and a net loss of $4.9 million for the fourth
quarter last year. Revenue climbed 6% during the full year and
was up 11% in the fourth quarter.
"We delivered strong operational and financial performance
in the fourth quarter, building momentum for Anika's multi-year
growth strategy," Anika CEO Cheryl Blanchard said on the
earnings call.
The stock price fell after earnings and traded at $28.16 on
Monday, down 4.4% since the start of the year.
Caligan declined to comment. The investment firm specializes
in healthcare investing and nominated a slate of directors in
September 2019 at AMAG Pharmaceuticals where it settled for two
board seats. Within a year of the settlement, AMAG had replaced
its chief executive officer, rationalized operating expenses and
was bought by Covis Pharma in late 2020.
(Reporting by Svea Herbst-Bayliss; Editing by Josie Kao)
((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))