Anika Therapeutics Inc. is streamlining its operations to capitalize on growth opportunities within the hyaluronic acid and regenerative solutions markets.

The company has sold its Arthrosurface business for $10 million to Phoenix Brio Incorporated and announced its intent to divest its sports medicine franchise (Parcus Medical). “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,” Anika Therapeutics President/CEO Cheryl R. Blanchard, Ph.D., said. “Today’s actions position Anika to fully focus on our profitable, core hyaluronic acid (HA) technology, and advance our differentiated and growing Regenerative Solutions portfolio. The total addressable global market for these products is estimated to be $4 billion.”

Anika officially closed the sale of its Arthrosurface business today, receiving $10 million in a 10-year non-interest bearing promissory note for $7 million, and an estimated $3 million subject to Arthrosuface’s sales performance. Anika and Phoenix Brio are provideing certain support services through early 2025 and will ensure product and sales service continuity to distributors and customers.

“As a part of our assessment of our products, pipeline, and market opportunities, and our experience operating these businesses in a rapidly changing environment, we concluded that the Arthrosurface and Parcus portfolio of products were not an optimal fit for Anika but would be a welcomed addition for another company,” Dr. Blanchard continued. “We will continue to work with our advisors to pursue the sale of the Parcus business and will provide details as appropriate.”

As part of the comprehensive strategic review, Anika has decided to sell Parcus Medical, its Sarasota, Fla.-based sports medicine business it acquired with Arthrosurface in early 2020. Parcus is a competitor in the $3 billion global sports medicine market and has a broad portfolio of products to treat various soft tissue injuries, particularly in the shoulder, hand/wrist, and foot/ankle.

Goodwin Procter served as legal counsel and Piper Sandler acted as exclusive financial advisor to Anika for the Arthrosurface sale. Piper Sandler will act as exclusive financial advisor to Anika for the Parcus Medical sale.

Anika Therapeutics Inc. is a global joint preservation company that creates and delivers advancements in early intervention orthopedic care. Leveraging its core expertise in hyaluronic acid and implant solutions, the firm partners with clinicians to provide minimally invasive products that restore active living for people worldwide. Its focus areas include osteoarthritis pain management, regenerative solutions, and sports medicine; products are delivered in key sites of care, including ambulatory surgery centers. Anika’s global operations are headquartered outside of Boston.