Doma Perpetual Capital Management has called on shareholders of Pacira BioSciences to support efforts for strategic and operational changes at the pharmaceutical company, arguing the business is undervalued and suffering from weak execution.

In a letter to shareholders, the investment firm criticised Pacira’s recent performance and said management had failed to fully capitalise on the commercial potential of its non-opioid pain treatment portfolio. Doma says the company’s shares have significantly underperformed peers despite favourable market conditions for alternative pain therapies.

The hedge fund also raised concerns over capital allocation, operational efficiency and investor communication, while calling for stronger governance and a renewed focus on shareholder value creation.

Doma argues Pacira’s product portfolio and balance sheet position provide substantial upside potential if the company improves execution and adopts a clearer strategic direction. The investor says it believes operational changes and a refreshed approach to growth could unlock significant value for shareholders.

The letter adds to growing pressure from activist investors across the healthcare sector, where managers are increasingly targeting companies viewed as undervalued or operationally inefficient.

Pacira has faced a more challenging commercial environment in recent years amid increased competition and shifting healthcare spending trends, despite continued demand for non-opioid pain management treatments.