Investor Group Cites 64% Five-Year Loss and Calls for Sale Process
Pacira has delivered a 64% decline over five years and a 28% drop since Frank Lee’s appointment, with year-to-date losses of 11%. DOMA, a 7.5% shareholder, criticizes the board’s management of Exparel patent litigation and urges a board-supervised sale process to protect shareholder value.
1. Underperformance Trends
Pacira’s total shareholder return since Frank Lee became CEO stands at –28%, with a 1-year drop of 12%, a 3-year loss of 44%, a 5-year loss of 64% and an 11% decline year-to-date. DOMA Perpetual argues that this persistent underperformance reflects board negligence and misguided strategic choices that have failed to deliver adequate total return to shareholders.
2. Exparel Patent Risk
Exparel, representing over 80% of Pacira’s revenue, faces significant IP challenges after a district court invalidated a key ‘495 patent claim. A subsequent settlement accelerates limited generic entry in 2030 and unlimited entry no earlier than 2039, heightening the risk of revenue erosion without a contingency plan in place.
3. Advocated Sale Process
Holding approximately 7.5% of shares—more than the entire board combined—DOMA Perpetual contends that a disciplined, board-supervised process to explore strategic alternatives, including a potential sale, is the safest path to protect and enhance shareholder value. The investor letter calls for shareholders to vote on whether any sale price is adequate and in their best interests.