#USA #Miami #Pacira BioSciences #Exparel #DOMA Perpetual

DOMA Perpetual's Bold Call for Action on Pacira BioSciences

In a significant move reflecting shareholder concerns, DOMA Perpetual Capital Management LLC, a prominent stakeholder in Pacira BioSciences, Inc. (NASDAQ: PCRX), has formally requested the company's board to engage investment bankers for an extensive sale process. DOMA, which holds 6.8% of Pacira's common stock, cites management's inadequate performance and financial imprudence as key reasons for this urgent recommendation.

On November 10, 2025, DOMA submitted a letter articulating their position and intentions regarding their shareholding in what they describe as a 'disheartening narrative of underperformance' from the current management. They express disappointment over excessive expenditures and question the ongoing financial strategies leading to diminished shareholder returns. The call to action comes at a time when Pacira is under scrutiny for its declining stock performance and lack of strategic direction.

Key Issues Highlighted by DOMA

In their letter, DOMA meticulously outlines several crucial issues concerning Pacira's management:

• - Excessive Spending: They claim that the management has squandered millions on initiatives that yielded dubious returns, including a costly headquarters move that they considered unnecessary and detrimental to financial prudence.
• - Out-of-Line Executive Compensation: The letter points to stock-based compensation costs that, according to DOMA, should not correlate with the company's current scale, identifying them as significantly excessive around 6% of market capitalization for 2025.
• - Declining Revenue: Another flag raised by DOMA is the 2% decline in Zilretta sales over the year, underscoring management’s inability to drive growth effectively.

The Need for a Strategic Sale Process

DOMA believes that a potential buyer could enhance Pacira's fiscal health by implementing cost-cutting measures without the inefficiencies caused by current management. They argue that existing assets, particularly Exparel, an innovative non-opioid pain management product, hold considerable value that far exceeds the current share price of approximately $66, which they estimate could reflect a threefold increase.

By advocating for a sale process, DOMA suggests that under more capable management, Exparel could substantially benefit from enhanced distribution and marketing efficiencies, thus better serving both healthcare providers and the broader community grappling with the opioid crisis.

Recommendations for Board Action

In addition to seeking a formal sale process, DOMA emphasizes immediate actions the board must take to rectify their current trajectory:
1. Cost Reduction Strategy: Provoking immediate discussions regarding a fiscal strategy that curbs excessive spending while prioritizing effective capital allocation.
2. Free Cash Flow Utilization: All profits should be earmarked for stock buybacks, emphasizing that this should be a top priority until stock prices align with intrinsic values.
3. Hold All Major Acquisitions: DOMA advises halting any further major projects unless current commitments prove profitable.

Conclusion

In conclusion, DOMA Perpetual’s assertive stance towards Pacira's board showcases growing frustration among shareholders. Their detailed proposal underscores the necessity for a recalibrated approach to enhance shareholder value effectively. As investors seek accountability and tangible improvements, how Pacira's board responds to these multifaceted concerns remains to be seen, but the urgency for corrective measures has never been clearer.

For now, the spotlight is on Pacira BioSciences as they navigate the pressures of shareholder activism and the call for transformative change.