Activist hedge fund Jana Partners is stepping up its campaign at medical-device maker Cooper Companies, calling for the replacement of chief executive Albert White and urging the company to consider strategic alternatives for its core businesses, according to a report by the Wall Street Journal.
Jana outlined its demands in a letter to Cooper on Thursday, arguing that the company requires a significant overhaul after what the activist describes as a prolonged period of underperformance.
The hedge fund is calling for Cooper to appoint a new chief executive and board chair, engage with potential buyers for its CooperVision contact-lens business and consider selling its fertility and other medical-device operations housed within CooperSurgical.
White has served as Cooper’s CEO since 2018.
Jana argues that Cooper has struggled with inventory management and capital allocation and believes changes at the leadership and board levels are needed to address those issues.
The campaign marks an escalation of Jana’s involvement with Cooper after the activist built a stake in the company around a year ago. Jana had previously encouraged Cooper to explore strategic options, including a potential combination of CooperVision with rival Bausch + Lomb.
Cooper has a market capitalisation of approximately $10bn following a roughly 16% decline in its shares over the past year. The stock has fallen about 28% since Jana first disclosed its investment, according to the figures cited by the Wall Street Journal.
Cooper operates two principal businesses. CooperVision manufactures contact lenses and provides vision-care products, while CooperSurgical supplies products and services focused on women’s health and fertility. CooperVision is one of the world’s largest manufacturers of soft contact lenses.
Jana’s latest demands suggest the activist sees potential value in separating or otherwise reshaping the company’s businesses rather than maintaining its current structure.
The campaign comes shortly after Cooper reported third-quarter results and said it was expanding its US sales operation to cover an additional 5,000 eye-care offices.
Jana could pursue a proxy contest if Cooper does not agree to its proposals. The deadline for director nominations is expected to fall in early January, according to FactSet, giving the two sides several months to negotiate or prepare for a potential shareholder vote.
