DURECT (DRRX) Company Report

Bausch Health Companies Inc. completed its acquisition of DURECT Corporation on September 11, 2025.
Under the terms, Bausch Health acquired all outstanding shares of DURECT for $1.75 per share in cash, representing an upfront payment of approximately $63 million. The agreement also includes potential net sales milestone payments of up to $350 million.
The acquisition adds larsucosterol, DURECT's lead asset, to Bausch Health's hepatology pipeline. Larsucosterol has an FDA Breakthrough Therapy Designation for alcohol-associated hepatitis, and a registrational Phase 3 program is being planned.
Following the completion of the tender offer and merger, DURECT Corporation became a wholly owned subsidiary of Bausch Health, and its common stock ceased trading on Nasdaq on September 11, 2025.

Sep 11, 2025, 12:35 PM

DURECT Corporation Outlines Phase III Plans and Financing Needs for Alcohol-Associated Hepatitis Drug

DRRX

New Projects/Investments

Guidance Update

DURECT Corporation is developing larsucosterol for alcohol-associated hepatitis (AH), a severe disease with no approved therapy and a 30% 90-day mortality rate in the placebo group.
Larsucosterol demonstrated significant efficacy in a Phase II-B trial, showing 57% and 58% reductions in mortality in the US patient population, which led to FDA Breakthrough Designation.
The company plans a Phase III trial, expected to take about two years from initiation to data readout and cost approximately $20 million, to be conducted solely in the US with 90-day survival as the primary endpoint.
DURECT is currently debt-free after selling its ALZET business, but requires additional capital to fund the Phase III trial and ongoing operations.

Feb 11, 2025, 7:00 PM

DURECT Corporation Provides Update on Larsucosterol Development for Alcohol-Associated Hepatitis

DRRX

New Projects/Investments

Guidance Update

DURECT Corporation is developing Larsucosterol, an epigenetic therapy, for alcohol-associated hepatitis (AH), a condition responsible for 160,000 hospitalizations and 30,000-40,000 deaths annually in the US, with no currently approved therapy.
The company's Phase 2b trial demonstrated 57% and 58% reductions in mortality in US patients, which led the FDA to grant Breakthrough Designation for Larsucosterol.
A planned Phase 3 trial, which will focus solely on US patients and use 90-day survival as its primary endpoint, is expected to take about two years to complete from its start and cost an estimated $20 million for the trial itself. The FDA has indicated that a single trial replicating the US Phase 2b results could be sufficient for approval.
DURECT has a debt-free balance sheet after selling its LZAT business and repaying its term loan, but it requires additional capital to fund the upcoming Phase 3 trial.