#USA #Miami #Pacira BioSciences #DOMA Perpetual #Frank Lee

DOMA Perpetual Aims to Transform Pacira BioSciences through Strategic Nominations

In a significant move aimed at revitalizing Pacira BioSciences, Inc., DOMA Perpetual Capital Management LLC, an investment firm based in Miami, has nominated three highly experienced candidates for the company's Board of Directors. This comes during a challenging period for Pacira, whose stock has plummeted by 56% over the last decade and 68% in just the past five years, sparking concerns among shareholders regarding the current management's performance.

Under the leadership of CEO Frank Lee, the company has notably experienced a stock decrease of 30%, with numerous missed earnings projections that continue to undermine investor confidence. The underperformance of the firm, according to DOMA, is a reflection of poor oversight from the Board, leading to significant mismanagement and lack of accountability.

The Nominees: A Focus on Expertise

DOMA's nominees include:

• - Christopher Dennis, MD, MBA, FAPA - A board-certified psychiatrist with over 25 years in behavioral health and digital health. His leadership skills and insights into healthcare could be invaluable for Pacira's strategic direction.
• - Oliver Benton Curtis III - A seasoned federal prosecutor turned trial lawyer, he brings extensive experience in regulatory enforcement and internal investigations, vital for ensuring corporate governance.
• - Eric de Armas - Currently the CFO and CCO at DOMA Perpetual, his over two decades of experience in finance and risk management will be crucial in navigating the company's financial landscape.

These nominees are characterized by their extensive backgrounds in healthcare, financial strategy, and legal compliance, which DOMA believes are essential for instilling financial controls and expertise on the Board.

Addressing Shareholder Concerns

DOMA has highlighted the frustrating trends for Pacira shareholders, with the company incurring annual losses while executive compensation has surged. Over the last two years, CEO Frank Lee's compensation reportedly exceeded the total earnings per share distributed to all shareholders. This shift from performance-based incentives to cash compensations, primarily in the form of Restricted Stock Units (RSUs), raises red flags about the Board's accountability.

The continued increase in management remuneration, alongside the company's dilapidated stock performance, has spurred DOMA's call for immediate changes. They argue that the Board should seek an interim CEO, suspend further risky acquisitions, and prioritize maximizing shareholder returns through potential sales of the company or its assets.

Future Directions for Pacira

EXSPAREL, Pacira’s flagship non-opioid pain medication, holds enormous potential for growth within a healthcare landscape seeking alternatives to opioids. However, DOMA asserts that Pacira is too small to effectively market and distribute this valuable product independently.

By aligning itself with a larger firm, Pacira could better leverage its assets and assure that shareholders receive appropriate returns on their investments. DOMA's vision is clear: shareholders’ interests should be reinstated as a priority, leading to strategic shifts at both the management and Board levels.

Conclusion

As Pacira BioSciences navigates a critical juncture, the introduction of experienced candidates by DOMA Perpetual highlights a potential pathway toward revitalization. With the health sector in need of innovation amid rising opioid concerns, Pacira's Board must address shareholder grievances and work towards a future that prioritizes sustainable growth and profitability. The stakes are high, and the upcoming Board elections will play a pivotal role in shaping the future of not only Pacira but also the broader discourse on corporate responsibility in the pharmaceutical industry.