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

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.