Pacira Faces 10% YTD Stock Drop as Activist Seeks Board Overhaul
PCRX•DOMA, holding 7.5% of shares, highlights YTD 10% share drop and 65% five-year decline while alleging Pacira misled investors on patent protection and conceded hundreds of millions in Exparel revenues. The activist urges votes for three nominees at the June 9 meeting to replace management and pursue a sale process.
1. Activist Stake and Criticism
DOMA Perpetual Capital Management owns approximately 7.5% of Pacira and accuses the board of a decade of value destruction, alleging gross negligence in managing patent risks and self-enriching compensation practices.
2. Stock Performance Declines
Pacira’s stock has fallen 10% year-to-date, 9% over one year, 21% over two years, 41% over three years, 65% over five years and 46% over ten years, reflecting investor skepticism.
3. Patent Settlement and Risks
Following an adverse lower court ruling on the ‘495 patent, Pacira settled with Fresenius Kabi, conceding hundreds of millions in future Exparel revenue, exposing the company to further generic competition.
4. Strategic Sale Proposal and Proxy Fight
DOMA urges shareholders to vote for its three nominees at the June 9 annual meeting to explore a disciplined market sale process, replace current directors and protect shareholder value.
