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MIAMI - DOMA Perpetual Capital Management LLC, a significant investor in Pacira BioSciences (NASDAQ: PCRX), announced today its nomination of three director candidates for the company’s board. The move comes as part of a strategy to address what DOMA identifies as a lack of financial sophistication and legal expertise on the current board and to amend the company’s capital allocation strategy. According to InvestingPro data, Pacira maintains good financial health with a current ratio of 2.4, indicating strong liquidity, while operating with a moderate debt level.
Over the past decade, Pacira’s stock has plummeted by 76%, while the S&P 500 index rose by 167%. DOMA attributes this underperformance to the board and management’s half a billion dollars in compensation, which is roughly 50% of Pacira’s current market cap. The proposed director nominees, Joseph Kromholz, Philip Pucciarelli, and Eric de Armas, bring extensive experience in intellectual property law, investment banking, and corporate finance, respectively.
DOMA, which owns approximately 4.2% of Pacira’s outstanding shares, criticizes the current board’s approach to strategic capital allocation, which it believes is misaligned with shareholder interests. The investor group suggests that the board should prioritize shareholder returns and avoid taking significant risks until there is certainty in the ongoing intellectual property battle.
The nominees are expected to push for accelerated buybacks and the return of the majority of the company’s cash balance and free cash flow to shareholders, as long as it remains accretive to do so. Supporting this strategy, InvestingPro data shows management has already been actively buying back shares, with the company generating substantial free cash flow yield of 17%. DOMA’s goal is to ensure that shareholders’ interests are fully represented on Pacira’s board and to correct what it calls a decade of corporate abuse and lackluster stock performance.
The proxy statement for the election of DOMA’s slate of director nominees has been filed with the Securities and Exchange Commission, and the investment firm advises all shareholders to review it for important information once available. For deeper insights into Pacira’s financial health, valuation, and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which includes detailed analysis of the company’s fundamentals and future potential.
This article is based on a press release statement from DOMA Perpetual Capital Management LLC.
In other recent news, Pacira Pharmaceuticals reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.91 compared to the forecasted $0.79. The company also exceeded revenue forecasts, reporting $187.3 million against the anticipated $180.22 million. Pacira has set its 2025 revenue guidance between $725 million and $765 million, aligning with analysts’ expectations. Notably, Pacira completed the acquisition of the remaining 81% stake in GQ Bio for $32 million, supporting its strategic "5x30" initiative.
Analyst firms have responded to these developments with positive adjustments. Needham reaffirmed its buy rating on Pacira and raised the stock price target to $32, citing the company’s strategic moves and positive outlook for 2025. Similarly, H.C. Wainwright increased the price target to $48, emphasizing the conservative nature of Pacira’s 2025 revenue guidance and the positive developments surrounding its drug Exparel. The analyst from H.C. Wainwright projected a 10.6% revenue increase for 2025, highlighting the potential for greater adoption of Exparel due to the NOPAIN Act.
Pacira’s flagship product, Exparel, saw sales increase to $147.7 million in Q4 2024, up from $143.9 million in the same quarter the previous year. The company anticipates further growth driven by strategic initiatives like the NOPAIN program, which aims to reduce opioid use by promoting non-opioid pain management alternatives. The recent acquisition of GQ Bio is expected to eliminate future milestone payments and complement Pacira’s pipeline, aligning with its long-term growth strategy.
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