Workflow
DURECT (DRRX) - 2025 Q2 - Quarterly Results
DURECT DURECT (US:DRRX)2025-08-12 20:30

Executive Summary & Corporate Update Second Quarter 2025 Financial Results Overview DURECT Corporation reported its financial results for Q2 2025, showing a decrease in total revenues and a reduced net loss compared to Q2 2024, with cash and investments also declining from year-end 2024 Financial Highlights for Three Months Ended June 30: | Metric | Q2 2025 | Q2 2024 | | :---------------------------------- | :------ | :------ | | Total revenues | $447,000 | $646,000 | | Net loss | $2.3 million | $3.7 million | Cash, Cash Equivalents and Investments: | Date | Amount | | :---------------------------------- | :------ | | June 30, 2025 | $6.7 million | | December 31, 2024 | $12.0 million | Proposed Acquisition by Bausch Health DURECT announced an agreement to be acquired by Bausch Health, with the transaction expected to close in Q3 2025, including an upfront cash payment per share and potential future sales milestones - DURECT Corporation announced its acquisition by Bausch Health Companies Inc.2 - The transaction is expected to be completed in the third quarter of 202513 Merger Agreement Details The merger agreement outlines Bausch Health's payment of $1.75 per share in cash, totaling approximately $63 million upfront, with potential for up to $350 million in aggregate net sales milestone payments for larsucosterol Merger Payment Structure: | Component | Amount | | :---------------------------------- | :------ | | Per share payment | $1.75 per share | | Upfront consideration (all-cash) | Approximately $63 million | | Potential net sales milestone payments | Up to $350 million (aggregate) | - Milestone payments are contingent on larsucosterol sales, to be achieved before the earlier of the 10-year anniversary of first commercial sale in the U.S. or December 31, 20453 Tender Offer and SEC Filings A tender offer for DURECT's common stock commenced on August 12, 2025, by Bausch Health's subsidiary, with investors advised to review SEC filings for important information - A tender offer to acquire all of DURECT's outstanding common stock commenced on August 12, 20253 - Bausch Health and Merger Sub filed a Tender Offer Statement on Schedule TO, and DURECT filed a Solicitation/Recommendation Statement on Schedule 14D-9 with the SEC on August 12, 20254 - Investors and security holders are advised to read these documents carefully and in their entirety prior to making any decisions regarding the tender offer456 Company Profile About DURECT Corporation DURECT Corporation is a late-stage biopharmaceutical company focused on epigenetic therapies, with its lead drug candidate, larsucosterol, in clinical development for alcohol-associated hepatitis (AH) and holding FDA Fast Track and Breakthrough Therapy designations - DURECT is a late-stage biopharmaceutical company developing epigenetic therapies targeting dysregulated DNA methylation for serious and life-threatening conditions, including acute organ injury6 - Larsucosterol, DURECT's lead drug candidate, is in clinical development for alcohol-associated hepatitis (AH) and has received FDA Fast Track and Breakthrough Therapy designations6 - Larsucosterol is an investigational drug candidate and has not been approved for commercialization by the U.S. Food and Drug Administration or other health authorities9 Forward-Looking Statements and Risk Factors This section contains forward-looking statements regarding the acquisition and future performance, cautioning that actual results may differ due to various risks, including uncertainties in timing, completion, competing offers, closing conditions, and milestone achievement - The press release contains forward-looking statements regarding the potential benefits and timing of the acquisition, and the prospective performance of the surviving company7 - Actual results may differ materially due to risks such as uncertainties in the timing and completion of the Offer and Merger, the percentage of stockholders tendering shares, competing offers, failure to satisfy closing conditions, and the risk that Milestone Payments are not achieved7 - Undue reliance should not be placed on these statements, and the Company undertakes no obligation to revise or update them, except as required by law8 Financial Statements Condensed Statements of Operations and Comprehensive Loss The condensed statements of operations show a decrease in total revenues and a reduced net loss for both the three and six months ended June 30, 2025, compared to the same periods in 2024, primarily due to lower research and development costs Three Months Ended June 30 (in thousands): | Metric | 2025 | 2024 | YoY Change | | :---------------------------------- | :--- | :--- | :--------- | | Collaborative R&D and other revenue | $428 | $606 | -29.4% | | Product revenue | $19 | $40 | -52.5% | | Total revenues | $447 | $646 | -30.8% | | Research and development | $1,176 | $2,247 | -47.7% | | Selling, general and administrative | $2,067 | $2,566 | -19.4% | | Net loss | $(2,265) | $(3,700) | -38.7% | | Net loss per common share (basic) | $(0.07) | $(0.12) | -41.7% | Six Months Ended June 30 (in thousands): | Metric | 2025 | 2024 | YoY Change | | :---------------------------------- | :--- | :--- | :--------- | | Collaborative R&D and other revenue | $749 | $1,102 | -32.0% | | Product revenue | $19 | $40 | -52.5% | | Total revenues | $768 | $1,142 | -32.8% | | Research and development | $3,059 | $6,366 | -51.9% | | Selling, general and administrative | $4,644 | $5,246 | -11.5% | | Net loss | $(6,497) | $(11,343) | -42.7% | | Net loss per common share (basic) | $(0.21) | $(0.37) | -43.2% | Condensed Balance Sheets As of June 30, 2025, DURECT's total assets decreased significantly compared to December 31, 2024, primarily driven by a reduction in cash and cash equivalents and short-term investments, while total liabilities remained relatively stable and stockholders' equity decreased Condensed Balance Sheet Highlights (in thousands): | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | Cash and cash equivalents | $6,502 | $11,011 | $(4,509) | | Short-term Investments | $0 | $792 | $(792) | | Total current assets | $7,772 | $13,175 | $(5,403) | | Total assets | $12,482 | $18,349 | $(5,867) | | Total current liabilities | $7,893 | $7,710 | $183 | | Stockholders' equity | $3,483 | $9,131 | $(5,648) | Contact Information Investor Relations Contact This section provides contact details for DURECT Corporation's investor relations and media inquiries, handled by LifeSci Advisors and LifeSci Communications, respectively - Investor Relations contact: Sandya von der Weid at LifeSci Advisors (svonderweid@lifesciadvisors.com)13 - Media Contact (DURECT): Michael Fitzhugh at LifeSci Communications (mfitzhugh@lifescicomms.com)13