BEDFORD, Mass. - Anika Therapeutics , Inc. (NASDAQ: NASDAQ:ANIK), specializing in joint preservation and early intervention orthopedics, today announced strategic board appointments and the initiation of a $40 million share repurchase program.
The company has appointed Joseph Capper, CEO of MIMEDX, and William Jellison, former CFO of Stryker (NYSE:SYK), to its Board of Directors, effective immediately. The new directors are expected to leverage their combined nearly five decades of MedTech experience to contribute to Anika's capital allocation strategies.
The board has also authorized a new share repurchase program, which will replace the April 2023 buyback plan.
This program includes a $15 million repurchase through a 10b5-1 plan, to be completed by June 30, 2025, with the balance to be bought back in the open market by June 30, 2026. These actions follow the company's cost reduction initiatives aimed at focusing on core strengths and improving financial performance.
Anika's President and CEO, Cheryl R. Blanchard, Ph.D., expressed confidence that the appointments of Capper and Jellison will add valuable perspectives to the company's efforts to enhance customer solutions and drive shareholder value. John B. Henneman III, Chair of the Board, emphasized the board's commitment to sustainable profitability and operational excellence.
Caligan Partners LP, which entered into a cooperation agreement with Anika, has endorsed the board's full slate of directors for the upcoming 2024 Annual Meeting. Following the meeting, Anika's board will consist of nine directors, eight of whom are independent.
The cooperation agreement, which includes various commitments by Caligan, will be detailed in a Form 8-K filing with the U.S. Securities and Exchange Commission.
Anika's management remains focused on achieving an adjusted EBITDA of $25-$30 million for 2024, representing a significant increase from the previous year. The company continues to prioritize shareholder value and operational efficiency in its strategic planning.
This news article is based on a press release statement from Anika Therapeutics.
InvestingPro Insights
Anika Therapeutics, Inc. (NASDAQ: ANIK) is making strategic moves that reflect a strong focus on capital allocation and shareholder value, as seen in their recent board appointments and share repurchase program. The company's commitment to financial performance is underscored by the InvestingPro Tips, which highlight that management has been actively buying back shares and that Anika holds more cash than debt on its balance sheet. Additionally, the company is expected to turn a profit this year, according to analysts' predictions.
InvestingPro Data presents a nuanced picture of Anika's financial health. The company's market capitalization stands at $367.15 million, indicating a modest size within the biotech and pharmaceutical industry. Despite a negative P/E ratio over the last twelve months as of Q1 2024, reflecting the company's past challenges in generating profits, the PEG ratio during the same period is at 0.02, suggesting potential for future earnings growth relative to its share price. Furthermore, Anika's revenue growth of 7.49% over the last twelve months as of Q1 2024 demonstrates its ability to increase sales, an essential factor for future profitability.
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