Benzingaยท2025-07-29 18:21Core Viewpoint - Bausch Health Companies Inc. has agreed to acquire DURECT Corp, focusing on the development of larsucosterol, a novel therapeutic molecule for alcoholic hepatitis, which currently lacks FDA or EMA approved treatments [1][2][3]. Group 1: Acquisition Details - Bausch Health will pay $1.75 per share in an all-cash transaction, totaling approximately $63 million, with potential milestone payments of up to $350 million [3]. - The acquisition is expected to close in the third quarter of 2025 [6]. Group 2: Clinical Development - A registrational Phase 3 program is planned to evaluate the safety and efficacy of larsucosterol for severe alcoholic hepatitis, with a primary endpoint of 90-day survival [3][4]. - The trial will be randomized, double-blind, placebo-controlled, and will incorporate feedback from the FDA [4]. Group 3: Complementary Programs - The acquisition complements Bausch Health's ongoing RED-C clinical program, which assesses rifaximin SSD for delaying the onset of hepatic encephalopathy hospitalization and all-cause mortality [5]. - Patient enrollment in two global Phase 3 studies for the RED-C program is complete, with results expected in early 2026 [5]. Group 4: Financial Context - Bausch Health is addressing its $21 billion debt, with a third due by 2027, and previously considered selling Bausch + Lomb Corp as part of this strategy [6]. - At the time of publication, Bausch Health's stock was down 0.36% at $6.87, while DURECT's stock rose 238.34% to $1.87 [6].