DOMA Perpetual Nominates Three Highly Qualified Candidates for the Board of Pacira BioSciences
DOMA Perpetual Capital Management, owning 4.2% of Pacira BioSciences (NASDAQ: PCRX), has nominated three directors to the company's board amid concerns over poor performance and capital allocation. The activist investor highlighted that Pacira's stock has declined 76% over the past decade while the S&P 500 gained 167%.
The key concerns include:
- 33% stock price decline under current CEO Frank Lee
- Management compensation totaling nearly half a billion dollars (approximately 50% of current market cap)
- Questionable capital allocation strategies
DOMA's nominated candidates include: Joseph Kromholz (IP law expert), Philip Pucciarelli (healthcare investment banking veteran), and Eric de Armas (DOMA's CFO/CCO). DOMA aims to accelerate share buybacks and return cash to shareholders while avoiding substantial risks until IP battle certainty is achieved.
DOMA Perpetual Capital Management, che possiede il 4,2% di Pacira BioSciences (NASDAQ: PCRX), ha nominato tre direttori per il consiglio di amministrazione dell'azienda a causa di preoccupazioni riguardo alle scarse performance e all'allocazione del capitale. L'investitore attivista ha sottolineato che il titolo di Pacira è diminuito del 76% nell'ultimo decennio, mentre l'S&P 500 ha guadagnato il 167%.
Le principali preoccupazioni includono:
- Declino del prezzo delle azioni del 33% sotto l'attuale CEO Frank Lee
- Compensi della direzione che ammontano a quasi mezzo miliardo di dollari (circa il 50% della capitalizzazione di mercato attuale)
- Strategie di allocazione del capitale discutibili
I candidati nominati da DOMA includono: Joseph Kromholz (esperto di diritto della proprietà intellettuale), Philip Pucciarelli (veterano della banca d'investimento nel settore sanitario) ed Eric de Armas (CFO/CCO di DOMA). DOMA mira ad accelerare i riacquisti di azioni e restituire liquidità agli azionisti, evitando al contempo rischi significativi fino a quando non si raggiunge certezza nella battaglia IP.
DOMA Perpetual Capital Management, que posee el 4.2% de Pacira BioSciences (NASDAQ: PCRX), ha nominado a tres directores para la junta de la empresa debido a preocupaciones sobre el bajo rendimiento y la asignación de capital. El inversor activista destacó que las acciones de Pacira han disminuido un 76% en la última década, mientras que el S&P 500 ha aumentado un 167%.
Las principales preocupaciones incluyen:
- Declive del 33% en el precio de las acciones bajo el actual CEO Frank Lee
- Compensación de la dirección que suma casi medio billón de dólares (aproximadamente el 50% de la capitalización de mercado actual)
- Estrategias de asignación de capital cuestionables
Los candidatos nominados por DOMA incluyen: Joseph Kromholz (experto en derecho de propiedad intelectual), Philip Pucciarelli (veterano de la banca de inversión en salud) y Eric de Armas (CFO/CCO de DOMA). DOMA tiene como objetivo acelerar la recompra de acciones y devolver efectivo a los accionistas, evitando riesgos sustanciales hasta que se logre certeza en la batalla de propiedad intelectual.
DOMA Perpetual Capital Management는 Pacira BioSciences (NASDAQ: PCRX)의 4.2%를 소유하고 있으며, 저조한 성과와 자본 배분에 대한 우려로 회사 이사회에 세 명의 이사를 추천했습니다. 행동주의 투자자는 Pacira의 주가는 지난 10년 동안 76% 하락했다고 강조했으며, S&P 500은 167% 상승했습니다.
주요 우려 사항은 다음과 같습니다:
- 현재 CEO Frank Lee 하에서 주가가 33% 하락
- 경영진 보상이 거의 5억 달러에 달함 (현재 시장 가치의 약 50%)
- 의심스러운 자본 배분 전략
DOMA가 추천한 후보자는 Joseph Kromholz(지적 재산권 법 전문가), Philip Pucciarelli(헬스케어 투자 은행 베테랑), Eric de Armas(DOMA의 CFO/CCO)입니다. DOMA는 주식 매입을 가속화하고 주주에게 현금을 반환하는 것을 목표로 하며, 지적 재산권 분쟁의 확실성이 확보될 때까지 상당한 위험을 피하고자 합니다.
DOMA Perpetual Capital Management, qui détient 4,2 % de Pacira BioSciences (NASDAQ: PCRX), a nommé trois administrateurs au conseil d'administration de l'entreprise en raison de préoccupations concernant les performances médiocres et l'allocation du capital. L'investisseur activiste a souligné que l'action de Pacira a chuté de 76 % au cours de la dernière décennie, tandis que le S&P 500 a gagné 167 %.
Les principales préoccupations incluent :
- Une baisse de 33 % du prix de l'action sous la direction de l'actuel PDG Frank Lee
- Une rémunération de la direction atteignant près d'un demi-milliard de dollars (environ 50 % de la capitalisation boursière actuelle)
- Des stratégies d'allocation de capital discutables
Les candidats nommés par DOMA comprennent : Joseph Kromholz (expert en droit de la propriété intellectuelle), Philip Pucciarelli (vétéran de la banque d'investissement en santé) et Eric de Armas (CFO/CCO de DOMA). DOMA vise à accélérer les rachats d'actions et à restituer des liquidités aux actionnaires tout en évitant des risques importants jusqu'à ce qu'une certitude soit atteinte dans le conflit de propriété intellectuelle.
DOMA Perpetual Capital Management, das 4,2% von Pacira BioSciences (NASDAQ: PCRX) besitzt, hat drei Direktoren für den Vorstand des Unternehmens nominiert, da Bedenken hinsichtlich der schlechten Leistung und der Kapitalallokation bestehen. Der aktivistische Investor hob hervor, dass der Aktienkurs von Pacira in den letzten zehn Jahren um 76% gefallen ist, während der S&P 500 um 167% gestiegen ist.
Die Hauptsorgen umfassen:
- 33% Rückgang des Aktienkurses unter dem aktuellen CEO Frank Lee
- Vergütung des Managements, die fast eine halbe Milliarde Dollar beträgt (ca. 50% der aktuellen Marktkapitalisierung)
- Zweifelhafte Kapitalallokationsstrategien
Die von DOMA nominierten Kandidaten sind: Joseph Kromholz (Experte für IP-Recht), Philip Pucciarelli (Veteran im Bereich Gesundheitsinvestmentbanking) und Eric de Armas (CFO/CCO von DOMA). DOMA hat sich zum Ziel gesetzt, Aktienrückkäufe zu beschleunigen und den Aktionären Bargeld zurückzugeben, während es erhebliche Risiken vermeidet, bis eine gewisse Klarheit im IP-Konflikt erreicht ist.
- None.
- Stock price down 76% over the past decade vs S&P 500 up 167%
- 33% stock price decline under current CEO Frank Lee
- Excessive management compensation totaling ~$500M (50% of current market cap)
- Poor capital allocation strategy misaligned with shareholder interests
- Ongoing IP battle creating uncertainty
Insights
DOMA Perpetual's activist campaign against Pacira BioSciences represents a significant challenge to current leadership after dismal long-term performance, with the stock down
The activist's critique centers on two key issues: poor capital allocation decisions and excessive executive compensation totaling nearly
DOMA, owning
The three proposed board nominees bring expertise in intellectual property law, healthcare investment banking, and financial management - skills clearly targeted at addressing DOMA's identified weaknesses in the current board composition. This proxy contest represents a pivotal moment that could significantly reshape Pacira's strategic direction and capital allocation policy if successful.
DOMA Perpetual's board nomination represents a textbook activist intervention targeting a chronically underperforming healthcare company. The
The nomination introduces serious governance questions around executive compensation practices, with management allegedly receiving compensation equaling approximately half of the company's current market value. This compensation-to-performance disconnect represents a severe agency problem that typically attracts institutional investor support for activists.
DOMA's strategic focus on capital return over risky investments represents a classic activist approach for mature companies generating cash but struggling with growth initiatives. By nominating directors with specific expertise in IP law (Kromholz), healthcare banking (Pucciarelli), and financial management (de Armas), DOMA is constructing a specialized team designed to address perceived board deficiencies.
The referenced IP battle creates a significant complicating factor that investors must consider - suggesting potential risks to Pacira's intellectual property assets that could materially impact the company's competitive position. This proxy contest will ultimately be decided by large institutional shareholders weighing DOMA's critique against management's defense of their long-term strategy. With only
Pacira's Stock is Down
Under CEO and Board Member Frank Lee, the Stock Price Has Declined
Change to the Board's Composition is Critical to Accelerate Shareholder Return and to Correct a Decade of Corporate Abuse and Lack of Stock Price Returns
DOMA's Three Highly Qualified Nominees Possess Vast Experience in Strategic Capital Allocation, Risk Management, Healthcare Banking and Intellectual Property Law and Litigation
DOMA today announced its nomination of three highly skilled director candidates to Pacira BioSciences Board of Directors (the "Board"): Joseph Kromholz, Philip Pucciarelli and Eric de Armas. DOMA believes electing these nominees is critical to address the Board's lack of financial sophistication and legal expertise and to correct its value-destroying capital allocation strategy. These candidates possess significant, relevant experience and are prepared to ensure that shareholders' interests are fully represented on the Board.
Over the last decade, Pacira's stock price is down
DOMA's aim is to accelerate buybacks to enhance shareholder value, returning to shareholders the vast majority of the cash on the balance sheet and free cash flow, for as long as it is accretive. DOMA believes the Board must avoid taking any substantial risk in capital allocation until certainty in the IP battle is achieved. It is time to put Pacira's shareholders first.
Director Nominees:
- Joseph Kromholz – Mr. Kromholz is a highly skilled attorney in all areas of intellectual property law including patent, trademark, copyright and unfair competition law and related litigation.
- Philip Pucciarelli – Mr. Pucciarelli is a seasoned financial professional who has spent more than 25 years in Investment Banking with a focus on M&A, strategic capital raising and corporate finance advisory for public and private Healthcare services companies.
- Eric de Armas – Mr. de Armas, CFO and CCO of DOMA Perpetual, has over two decades of experience in the financial industry. He possesses a deep knowledge of corporate finance, risk management and strategic capital allocation.
About DOMA Perpetual Capital Management LLC:
DOMA Perpetual Capital Management LLC is an asset management firm based in
Contact:
DOMA Perpetual Capital Management LLC
ir@domaperpetual.com
CERTAIN INFORMATION CONCERNING THE PARTICIPANTS
DOMA Perpetual Capital Management LLC, a
DOMA STRONGLY ADVISES ALL STOCKHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS' PROXY SOLICITOR.
The participants in the proxy solicitation are anticipated to be DOMA, DOMA Perpetual LO Equity Master Fund LP, an exempted limited partnership organized under the laws of the
As of the date hereof, DOMA LO Master directly beneficially owns 1,804,069 shares of Common Stock, par value
Disclaimer
This letter has been prepared by DOMA. The views expressed herein reflect the opinions of DOMA and are based on publicly available information with respect to Pacira BioSciences, Inc. ("Pacira" or the "Company"). DOMA recognizes that there may be confidential information in the possession of the Company that could lead it or others to disagree with DOMA's conclusions. DOMA reserves the right to change or modify any of such views or opinions at any time and for any reason and expressly disclaims any obligation to correct, update, or revise the information contained herein or to otherwise provide any additional materials.
For the avoidance of doubt, this press release was not produced by any person that is affiliated with Pacira, nor was its content endorsed by Pacira. This press release is provided merely as information and is not intended to be, nor should it be construed as, an offer to sell or a solicitation of an offer to buy any security nor as a recommendation to purchase or sell any security. One or more funds managed by DOMA currently beneficially owns shares of the Company.
Some of the materials in this press release contain forward-looking statements. All statements contained herein that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words "anticipate," "believe," "expect," "potential," "could," "opportunity," "estimate," "plan," "once again," "achieve," and similar expressions are generally intended to identify forward-looking statements. The projected results and statements contained herein that are not historical facts are based on DOMA's current expectations, speak only as of the date of these materials and involve risks, uncertainties and other factors that may cause actual results, performances or achievements to be materially different from any future results, performances or achievements expressed or implied by such projected results and statements. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of DOMA.
i Pacira Company Filings, DOMA Perpetual Internal Calculations
ii Bloomberg Database, as of the close March 13, 2025. S&P 500 references Bloomberg Ticker: SPX
iii Pacira Company Filings, DOMA Perpetual Internal Calculations
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SOURCE DOMA Perpetual