Anika Therapeutics (ANIK) signed agreements to acquire Parcus Medical, a sports medicine company, and Arthrosurface, a provider of joint surface and preservation solutions.
The transactions diversify the company's revenue mix while expanding its product portfolio and pipeline. Parcus Medical provides direct access to ambulatory surgery centers, while Arthrosurface's pipeline and established direct hybrid sales model will accelerate ANIK's product platform strategy, firming the company's position in the sports and regenerative medicine spaces.
ANIK gains 40 direct sales reps and 150 distributors in the U.S., as well as 70 ex-U.S. distributors.
ANIK will acquire Parcus for an upfront payment of ~US $35 million in cash with an additional $60 million contingent upon achievement of certain commercial milestones. Parcus' estimated 2019 revenue is ~$13 million, +15% vs. 2018.
Parcus' 400+ products have application in sports medicine procedures to repair the shoulder, knee, hip and distal extremities, globally. Parcus' executive team, led by President Mark Brunsvold, will join ANIK and continue to lead the Parcus Medical segment.
ANIK will acquire Arthrosurface for an upfront payment of ~$60 million in cash with an additional $40 million contingent upon achievement of certain regulatory and commercial milestones. Arthrosurface's estimated 2019 revenue is ~$30 million, +10% vs. 2018.
Arthrosurface’s product portfolio, encompassing microfracture and implants, includes more than 150 different surface implant curvatures for the knee, shoulder, hip, ankle, wrist and toe to treat upper and lower extremity orthopedic conditions caused by trauma, injury and arthritis. More than 100,000 patients have been treated with its products in over 25 countries by 5,000+ surgeons. Its executive team, led by President and Chief Executive Officer Steven Ek, will join ANIK and continue to lead the Arthrosurface business innovation.
Both transactions are expected to close within 1Q20.