Cutera taps serial dealmaker Harris as CEO, stock price surges

Cutera

27/07/2023 21:45

By Svea Herbst-Bayliss
       July 27 (Reuters) - Aesthetics device maker Cutera Inc
 CUTR.O  said on Thursday it has appointed Taylor Harris, who
previously helped lead three companies which ended up getting
acquired, as its new chief executive, driving its shares up 23%
on dealmaking hopes.
    Harris, who joined Cutera's board last month, will take over
as CEO on Aug. 7. His appointment comes after Cutera in April
ousted CEO David Mowry and activist investor J. Daniel Plants,
who had served on the company's board for eight years, over
alleged violations of their employment contracts.
    "Taylor has a longstanding track record of successfully
leading and growing companies in the healthcare industry, and we
are confident he is the right leader to help Cutera accelerate
our momentum, sharpen our execution and create value for our
stockholders," Cutera board chairman Kevin Cameron said in a
statement.
    Cutera has received enquiries in recent weeks from companies
interested in an acquisition, although the interest is
preliminary and Harris plans to spend the next few months
focused on improving Cutera's operations, according to people
familiar with the matter. 
    Cutera shares ended trading on Thursday up 23% at $18.26,
giving the company a market value of $363 million. They have
lost close to two-thirds of their value so far this year.
    Cutera, which sells devices including laser treatments for
tattoo removal and acne, has seen weaker demand for its products
as consumers cut down on discretionary spending amid fears about
an economic slowdown. It is betting on its new AviClear device,
which U.S. regulators approved last month for the treatment of
acne, to revitalize growth. 
    "Cutera's core business, the exciting AviClear opportunity,
and the company's new product engine provide a strong foundation
for long-term success," Harris said in a statement.
    Harris previously served as chief financial officer of heart
drug maker MyoKardia which was acquired by Bristol-Myers Squibb
 BMY.N  in 2020 for $13.1 billion.  He was also CFO at ZELTIQ
Aesthetics, which developed a device to remove fat, when it was
bought by Allergan, now part of AbbVie Inc  ABBV.N  in 2017 for
$2.5 billion. He was CEO at Thoratec Corp, which makes devices
used to treat heart-failure patients, when it was acquired by
St. Jude Medical in 2015 for $3.3 billion.

 (Reporting by Svea Herbst-Bayliss in Rhode Island; Additional
reporting by Greg Roumeliotis in New York; Editing by Diane
Craft)
 ((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))