Investor Group Nominates Three Directors as Pacira Stock Drops 56%
DOMA Perpetual, holding 7.1% of Pacira shares, has nominated three candidates to replace CEO Frank Lee and overhaul the board. Pacira’s stock has slid 56% over ten years and 30% under Lee as missed earnings, lowered guidance and soaring management pay eroded profitability.
1. Pacira Underperformance
Over the past decade, Pacira’s share price has fallen 56% and has declined 30% since Frank Lee became CEO, driven by consecutive earnings misses, repeated downward guidance revisions and two years of net losses.
2. DOMA’s Activist Nomination
Miami-based DOMA Perpetual Capital Management, which holds roughly 7.1% of outstanding shares, has proposed Christopher Dennis, Oliver Benton Curtis and Eric de Armas for the board to strengthen financial controls and oversight.
3. Governance and Compensation Concerns
DOMA highlights that management pay now approaches 7% of market capitalization after switching to RSUs, executives received more in RSUs than cumulative EPS distributions, and management spent funds on an expensive San Francisco headquarters without strategic justification.
4. Proposed Strategic Overhaul
The activist investor is calling for the immediate removal of Frank Lee, appointment of an interim CEO, a formal sale process of Pacira or its flagship pain drug Exparel to unlock shareholder value and return capital.