Pacira BioSciences adopts majority vote standard for director elections

Published 14/03/2025, 22:42
Pacira BioSciences adopts majority vote standard for director elections

Pacira BioSciences, Inc. (NASDAQ:PCRX), a pharmaceutical company specializing in the preparation of pharmaceuticals with a market capitalization of $1.05 billion, has announced changes to its corporate governance structure. The company, which maintains a strong financial health score of "GOOD" according to InvestingPro analysis, approved the adoption of the Third Amended and Restated Bylaws through its Board of Directors on Monday, effective immediately.

The key change introduced is the implementation of a majority voting standard for the election of directors in uncontested elections. This means that for a director to be elected in situations where there is no competition for the board seats, they must receive more votes cast in favor than against their election. In the case of contested elections, where there are more nominees than available board positions, the company will retain the plurality vote standard, wherein the candidates with the most votes win, regardless of whether those votes constitute a majority.

No other amendments were made to the company’s Second Amended and Restated Bylaws, indicating that the majority of the company’s governance policies remain unchanged.

This move is seen as an effort to enhance corporate governance and accountability to shareholders. The adoption of a majority voting standard is often viewed as a practice that can lead to better alignment of board directors with shareholder interests. This commitment to shareholder value is further evidenced by management’s aggressive share buyback program, while the company’s stock has shown strong momentum with a 73% gain over the past six months.

The full text of the Third Amended and Restated Bylaws has been filed with the Securities and Exchange Commission and is available for reference. This change comes as part of the company’s latest filing, which also includes routine financial statements and exhibits.

Investors and stakeholders can view the detailed bylaws and the company’s SEC filings to understand the complete implications of these governance changes.

This report is based on a press release statement and the company’s recent SEC filing.

In other recent news, Pacira Pharmaceuticals reported its fourth-quarter 2024 earnings, exceeding analyst expectations with an earnings per share (EPS) of $0.91 and revenue of $187.3 million, surpassing forecasts of $0.79 EPS and $180.22 million in revenue. The company also provided a revenue guidance for 2025, projecting between $725 million and $765 million, aligning with analyst expectations of $744 million. In a strategic move, Pacira completed the acquisition of the remaining 81% of GQ Bio for $32 million, supporting its "5x30" strategy to invest in innovative pipeline assets. Analyst firm Needham raised Pacira’s stock price target to $32, maintaining a buy rating, while H.C. Wainwright increased its target to $48, citing a potentially conservative revenue forecast for 2025. Additionally, DOMA Perpetual Capital Management nominated three candidates for Pacira’s board, aiming to address perceived gaps in financial and legal expertise and to push for strategic capital allocation changes. Pacira is advancing its NOPAIN initiative, aimed at reducing opioid use, which is expected to drive growth for its flagship product, Exparel, particularly in the second half of 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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