Anika Therapeutics signs agreements to acquire Parcus Medical, Arthrosurface
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Anika Therapeutics Inc. announced it has signed agreements to acquire Parcus Medical and Arthrosurface.
In its agreement with Parcus Medical, Anika will acquire all outstanding membership interests in exchange for an upfront payment of approximately $35 million in cash from the company’s existing balance sheet, according to a company press release. The release also noted Anika will acquire all outstanding shares of Arthrosurface in exchange for an upfront payment of approximately $60 million in cash from Arthrosurface’s existing balance sheet.
The release noted Parcus Medical unitholders will be eligible to receive an additional $60 million upon successful achievement of certain commercial milestones, while Arthrosurface shareholders will be eligible to receive an additional $40 million upon successful achievement of certain regulatory and commercial milestones.
According to the release, Anika Therapeutics expects these acquisitions to drive growth by broadening the company’s product portfolio into joint preservation and restoration, adding high-growth and diversified revenue streams and expanding its product pipeline and research and development expertise. The release also noted the acquisitions aim to strengthen the commercial capabilities of Anika Therapeutics with approximately 40 direct sales representatives and approximately 150 distributors in the United States, as well as more than approximately 70 international distributors.
“We are very excited about these acquisitions, which are consistent with Anika’s commitment to expanding our portfolio into replacement and regenerative therapies for joint preservation and restoration,” Joseph Darling, president and CEO of Anika Therapeutics, said in the release. “These acquisitions will significantly enhance our commercial capabilities and infrastructure, diversify our revenue mix and expand our product portfolio and pipeline. Parcus Medical provides direct access to the high-growth ambulatory surgery center market, which will enable Anika to source new revenue streams, and Arthrosurface has an innovative product pipeline and an established direct hybrid sales model, which will accelerate our product platform strategy. Importantly, we are confident that these acquisitions, together with our existing product portfolio, will solidify Anika’s position in the $7 billion sports and regenerative medicine market and strengthen our ability to deliver better patient experiences and drive sustained revenue growth that will ultimately enhance value for shareholders.”
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