By Svea Herbst-Bayliss
(Reuters) – Aesthetics device maker Cutera Inc said on Thursday it has appointed Taylor Harris, who previously helped lead three companies which ended up getting acquired, as its new chief executive, driving its shares up 23% on dealmaking hopes.
Harris, who joined Cutera’s board last month, will take over as CEO on Aug. 7. His appointment comes after Cutera in April ousted CEO David Mowry and activist investor J. Daniel Plants, who had served on the company’s board for eight years, over alleged violations of their employment contracts.
“Taylor has a longstanding track record of successfully leading and growing companies in the healthcare industry, and we are confident he is the right leader to help Cutera accelerate our momentum, sharpen our execution and create value for our stockholders,” Cutera board chairman Kevin Cameron said in a statement.
Cutera has received enquiries in recent weeks from companies interested in an acquisition, although the interest is preliminary and Harris plans to spend the next few months focused on improving Cutera’s operations, according to people familiar with the matter.
Cutera shares ended trading on Thursday up 23% at $18.26, giving the company a market value of $363 million. They have lost close to two-thirds of their value so far this year.
Cutera, which sells devices including laser treatments for tattoo removal and acne, has seen weaker demand for its products as consumers cut down on discretionary spending amid fears about an economic slowdown. It is betting on its new AviClear device, which U.S. regulators approved last month for the treatment of acne, to revitalize growth.
“Cutera’s core business, the exciting AviClear opportunity, and the company’s new product engine provide a strong foundation for long-term success,” Harris said in a statement.
Harris previously served as chief financial officer of heart drug maker MyoKardia which was acquired by Bristol-Myers Squibb in 2020 for $13.1 billion. He was also CFO at ZELTIQ Aesthetics, which developed a device to remove fat, when it was bought by Allergan, now part of AbbVie Inc in 2017 for $2.5 billion. He was CEO at Thoratec Corp, which makes devices used to treat heart-failure patients, when it was acquired by St. Jude Medical in 2015 for $3.3 billion.
(Reporting by Svea Herbst-Bayliss in Rhode Island; Additional reporting by Greg Roumeliotis in New York; Editing by Diane Craft)
