Jana urges Cooper to replace CEO, explore asset sales after performance setbacks

Sept 18 — Activist investor Jana Partners on Friday urged Cooper Companies to launch ​an external search for a new CEO and consider asset sales, arguing recent missteps have hurt investor confidence ‌and weighed on the medical device maker's market value.

Cooper had lowered its annual forecasts ⁠last week and ended ​a review of options for ⁠its CooperSurgical unit without a sale.

Here are more details:

• Jana ‌asked Cooper to engage ‌potential buyers for its contact lens unit, CooperVision, and ⁠consider a sale of fertility ⁠and medical device businesses within its CooperSurgical unit.

• Cooper did not immediately respond to a Reuters request for comment.

• The activist investor owns about 3.58 million shares, or 1.8% stake, in Cooper, according to its latest regulatory filing.

• JANA ‌is also calling for a new board ​chair and the addition of directors with expertise to strengthen oversight of the company.

• Jana urged Cooper to link executive pay more closely to performance to boost accountability.

• It also criticized Cooper's handling of excess inventory held by customers of CooperVision.

• Jana said Cooper's shares have lagged peers and ​trade at a discount to comparable companies.

• Shares have fallen about ‌21% over the ‌past ⁠12 months, compared with gains of about 19% for Becton Dickinson and 61% for Integer Holdings and a decline of about 17% for Alcon, according to data compiled by LSEG.

• The investor ‌also urged Cooper to ​hire an outside adviser to identify ‌manufacturing and supply-chain cost ⁠savings at ​CooperVision.

(Reporting by Sahil Pandey in Bengaluru; Editing by Leroy Leo and ​Sahal Muhammed)

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