09:55 AM EDT, 09/25/2024 (MT Newswires) -- Pacira BioSciences ( PCRX ) has to quickly complete its currently approved $150 million stock buyback and launch a bigger stock repurchase plan as its share price continues to fall, shareholder DOMA Perpetual Capital Management said in a letter to the company's board Wednesday.

In the letter, DOMA, which owns about 4% of Pacira's shares, said the company should focus on buying back stock before considering any other capital-intensive plans. It should also stop all future M&A activity until proper shareholder return has been achieved.

"We believe Pacira's current stock price represents an enormous opportunity for a shareholder return," DOMA said in the letter.

The shareholder also proposed that after completing the currently approved $150 million share buyback plan, the company should approve a new $300 million share repurchase plan in Q4.

"Additional buybacks should continue into 2025, for as long as they can be done at accretive prices," DOMA said.

DOMA also said that it would be a "critical mistake" if the company did not repurchase stock "aggressively." It said that the company must take advantage of Pacira's "irrationally depressed" share price to buy back as many shares as it can "at the fastest pace allowed."

The shareholder also criticized Pacira's handling of patent litigation and its communication with shareholders regarding the issue, which has been affecting the stock. Earlier this month, a federal judge ruled that the US patent supporting Pacira's Exparel pain medication is not valid.

Pacira did not immediately respond to MT Newswires' request for comment.

Shares of Pacira were down 0.5% in recent trading activity.

Price: 14.19, Change: -0.07, Percent Change: -0.49