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

Sept 18 (Reuters) – 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)