Key Summary: In 2023, Caligan Partners urges Anika to consider strategic alternatives due to poor performance, advocating for a potential full sale. Valuation suggests Anika could be worth $60 per share. Caligan nominates directors, leading to a cooperation agreement with the company. On March 6, 2024, Caligan nominated two nominees to the Board. On May 28, 2024, Caligan Partners entered into a Cooperation Agreement with the company.Market Cap: $381 million | Anika Therapeutics, Inc., a joint preservation company, creates and delivers advancements in early intervention orthopedic care in the areas of anika-anik-enters-into-cooperation-agreement-with-caligan-partnersosteoarthritis (OA) pain management, regenerative solutions, soft tissue repair, and bone preserving joint technologies in the United States, Europe, and internationally.
On March 6, 2024, Caligan Partners (9.7%) nominated two nominees for election to the board at the 2024 AGM. Source
On May 28, 2024, Caligan Partners entered into a Cooperation Agreement with the company and pursuant to it, Caligan withdrew its prior nomination of individuals to the Board and the company appointed William Jellison (one of the individuals Caligan nominated) and Joseph Capper to the Board effective as of May 28, 2024.
Past
On February 21, 2023, Caligan Partners (4%) issued an open letter to the board in connection with Anika’s poor share performance, caused by the heavy losses it is incurring in its joint preservation segment, and its failure to maximize the value of Anika's viscosupplement portfolio. Further, it urges the company to consider strategic alternatives including a full sale, and is preparing to nominate directors to the board.
Valuation insight
Caligan believes, based on the strong regression, on a standalone basis (fully burdened by corporate costs and Cingal R&D), Anika’s OA pain management segment would be valued at ~5.8x 2023 revenue/14.2x 2023 EBITDA, which implies an EV of $580MM. For a potential acquirer that could easily eliminate Anika’s excessive corporate costs and decide the optimal path forward for Cingal, pro-forma EBITDA margins could be in the mid-50 percent range. Consistent with our earlier analysis, this implies that based on the existing, approved viscosupplement portfolio alone, Anika could be worth almost $60 per share, double the current share price.
On March 30, 2023, Caligan Partners nominated two nominees for election to the board at the 2023 AGM. Source
On April 13, 2023, the company entered into a Cooperation Agreement with Caligan Partners and pursuant to it, the company agreed to increase the size of the Board to eight directors and appoint Mr. Fischetti as an independent Class III director to fill such vacancy with a term expiring at the company’s 2023 AGM.
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