DOMA Perpetual Asserts Pacira BioSciences CEO Frank Lee Should Be Replaced Immediately; Urges Board To Name Interim CEO And Conduct Formal Sale Process Of The Business
Benzinga Newsdesk 8 months ago
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Pacira's Stock is Down 56% Over the Last Decade and Down 68% Over the Last 5 Yearsi; Under the Leadership of CEO and Board Member Frank Lee, the Stock Has Fallen 30%ii; The Company's Underperformance is Reflected in
Pacira's Stock is Down 56% Over the Last Decade and Down 68% Over the Last 5 Yearsi; Under the Leadership of CEO and Board Member Frank Lee, the Stock Has Fallen 30%ii; The Company's Underperformance is Reflected in Consistently Missed Earnings, Continuous Lowering of Guidance, Which is Then Missed, and a Complete Lack of Combined Profitability in the Last Two Yearsiii; We believe the Stock Price Reflects the Market's Lack of Trust in Management and the Board of Director's Utter Failure of Oversight
DOMA Asserts Frank Lee Should be Replaced Immediately; the Board Should Name an Interim CEO and Conduct a Formal Sale Process of the Business
DOMA's Three Highly Qualified Nominees Possess Vast Experience in Strategic Capital Allocation, Risk Management, Healthcare, Internal Investigations, Litigation, and Due Diligence
MIAMI, March 11, 2026 /PRNewswire/ -- DOMA Perpetual Capital Management LLC ("DOMA Perpetual") is a fundamentals-based, value-oriented investor that, together with its affiliates (collectively "DOMA" or "we"), beneficially owns approximately 7.1% of the outstanding shares of common stock of Pacira BioSciences (NASDAQ:PCRX) ("Pacira" or the "Company").
DOMA today announced its nomination of three highly skilled director candidates to Pacira's Board of Directors (the "Board"): Christopher Dennis, Oliver Benton Curtis and Eric de Armas. DOMA believes electing these nominees is critical to address the Board's lack of financial controls, sophistication and legal expertise, and to develop proper management oversight at the Board level. These candidates possess significant, relevant experience and are prepared to ensure that all shareholders' interests are fully represented on the Board.
DOMA's aim is to generate profit for the Company's shareholders, who have been forced to weather consistent year-over-year declines in the stock price while Company expenses and Management compensation have soared. DOMA believes the Board must avoid taking any further risk with IP battles and has previously privately notified members of the Board of its concern that the Board's actions may potentially constitute gross negligence.
The Board has spent years generating zero value for shareholders while lavishly compensating its executives and members. DOMA believes that the Company's shareholders should not continue to tolerate a Board that has overseen years of stock price decline while expenses and management compensation have increased.v Moreover, since the Company's Management has proven incapable of meeting performance-based goals that would benefit all shareholders, the Board's Compensation Committee signed off on a change from options-based compensation to RSUsvi. In the last two years, this change in compensation has paid more to CEO Frank Lee than what was distributed in earnings per share to all shareholders combinedvii. This compensation was not a reward for value creation or a job well done; it follows two years of dismal performance, in which the stock price has fallen over 30% and expenses have swelled across the firm.viii Management executive compensation is unsustainable, currently approaching 7% of the Firm's entire market capitalization.ix
The Board has continued to approve wasteful and unjustified expenditures, including allowing management to spend shareholder cash relocating the Company's headquarters to San Francisco despite the significant cost to shareholders and without providing a clear strategic justification for the move.x DOMA believes EXPAREL is a valuable asset whose potential has been undermined by management's strategic and operational execution. DOMA believes that shareholders must elect directors that understand that the Board must undertake a comprehensive review of the decisions and strategy that have contributed to the Company's sustained underperformance.
The interests of Pacira's shareholders must finally be put first. The Board should immediately engage bankers to proceed with a sale of the Company, discontinuing future acquisitions of pipeline drugs and maximizing returns and returning capital to its rightful owners, the Company's shareholders. EXPAREL is the only non-opioid pain medication for use in the surgical setting in the United States, a country still suffering from a horrible opioid epidemic. The drug lowers costs for providers and patients and has the potential to save countless lives by offering an effective alternative to opioid pain management. Pacira is too small to market this drug with scale and efficiency. By selling Pacira to a larger firm, the Company can ensure that shareholders finally receive the return they deserve and a larger, savvier company will be able to accelerate the distribution and application of this incredible drug. DOMA remains open to engaging constructively with the Board to achieve a solution that maximizes value for all shareholders.