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Anika Therapeutics announced the divestiture of its Arthrosurface business and the intention to divest the Parcus Medical business. The companies were acquired by Anika in 2020. The move is part of Anika’s strategic shift to focus on its core hyaluronic acid technology and Regenerative Solutions portfolio.
Primo Medical Group and two former Arthrosurface leaders purchased the Arthrosurface assets. Anika received consideration of $10 million in the form of a 10-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.
ORTHOWORLD Senior Market Analyst Mike Evers noted that in 2020, Arthrosurface contributed about $24 million, or approximately 20% of Anika’s orthopedic revenue. By 2023, it was likely closer to 15% to 18% as the company focused more on newer shoulder products.
With a focus on minimally invasive techniques, Arthrosurface products are designed to restore natural joint function while preserving surrounding bone and tissue. Arthrosurface’s product portfolio includes more than 150 different surface implant curvatures for the knee, shoulder, wrist and toe that are designed to treat upper and lower extremity orthopedic conditions caused by trauma, injury and arthritic disease.
Shane Shankle, who was appointed Arthrosurface’s new President, said, “As a leader in joint preservation, I’m excited to drive our company’s growth plan by delivering products that help patients maintain an active quality of life.”
Phoenix Brio will be the parent company to Arthrosurface and both will be based in West Bridgewater, Massachusetts. Anika and Primo Medical Group have agreed to provide support services through early 2025 and are committed to ensuring product continuity and high levels of service to distributors and customers during this time.
Anika announced that it also decided to sell its Parcus Medical sports medicine business. The company does not intend to discuss further developments until a transaction is approved or disclosure becomes otherwise appropriate.
“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,” said Cheryl R. Blanchard, Ph.D., President and Chief Executive Officer of Anika Therapeutics. “Today’s actions position Anika to fully focus on our profitable, core hyaluronic acid technology and advance our differentiated and growing Regenerative Solutions portfolio. The total addressable global market for these products is estimated to be $4 billion.”
The divestitures were announced during Anika’s 3Q24 earnings report. The company announced third-quarter revenue of $38.8 million, down 7% compared to the same period in 2023.
Sources: Primo Medical Group; Anika Therapeutics
Anika Therapeutics announced the divestiture of its Arthrosurface business and the intention to divest the Parcus Medical business. The companies were acquired by Anika in 2020. The move is part of Anika’s strategic shift to focus on its core hyaluronic acid technology and Regenerative Solutions portfolio.
Primo Medical Group and two...
Anika Therapeutics announced the divestiture of its Arthrosurface business and the intention to divest the Parcus Medical business. The companies were acquired by Anika in 2020. The move is part of Anika’s strategic shift to focus on its core hyaluronic acid technology and Regenerative Solutions portfolio.
Primo Medical Group and two former Arthrosurface leaders purchased the Arthrosurface assets. Anika received consideration of $10 million in the form of a 10-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.
ORTHOWORLD Senior Market Analyst Mike Evers noted that in 2020, Arthrosurface contributed about $24 million, or approximately 20% of Anika’s orthopedic revenue. By 2023, it was likely closer to 15% to 18% as the company focused more on newer shoulder products.
With a focus on minimally invasive techniques, Arthrosurface products are designed to restore natural joint function while preserving surrounding bone and tissue. Arthrosurface’s product portfolio includes more than 150 different surface implant curvatures for the knee, shoulder, wrist and toe that are designed to treat upper and lower extremity orthopedic conditions caused by trauma, injury and arthritic disease.
Shane Shankle, who was appointed Arthrosurface’s new President, said, “As a leader in joint preservation, I’m excited to drive our company’s growth plan by delivering products that help patients maintain an active quality of life.”
Phoenix Brio will be the parent company to Arthrosurface and both will be based in West Bridgewater, Massachusetts. Anika and Primo Medical Group have agreed to provide support services through early 2025 and are committed to ensuring product continuity and high levels of service to distributors and customers during this time.
Anika announced that it also decided to sell its Parcus Medical sports medicine business. The company does not intend to discuss further developments until a transaction is approved or disclosure becomes otherwise appropriate.
“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,” said Cheryl R. Blanchard, Ph.D., President and Chief Executive Officer of Anika Therapeutics. “Today’s actions position Anika to fully focus on our profitable, core hyaluronic acid technology and advance our differentiated and growing Regenerative Solutions portfolio. The total addressable global market for these products is estimated to be $4 billion.”
The divestitures were announced during Anika’s 3Q24 earnings report. The company announced third-quarter revenue of $38.8 million, down 7% compared to the same period in 2023.
Sources: Primo Medical Group; Anika Therapeutics
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Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
