DURECT Corporation Reports Second Quarter 2025 Financial Results and Provides Update on Proposed Acquisition by Bausch Health

Core Viewpoint - DURECT Corporation has entered into a merger agreement with Bausch Health, where Bausch Health will acquire DURECT for $1.75 per share, with potential additional milestone payments totaling up to $350 million, expected to close in Q3 2025 [1][2]. Financial Highlights - For the second quarter ended June 30, 2025, DURECT reported total revenues of $447,000, a decrease from $646,000 in the same period of 2024. The net loss for the quarter was $2.3 million, compared to a net loss of $3.7 million in Q2 2024 [5][11]. - As of June 30, 2025, DURECT had cash, cash equivalents, and investments totaling $6.7 million, down from $12.0 million at the end of 2024 [5][12]. Merger Agreement Details - The merger agreement stipulates an upfront cash payment of approximately $63 million at closing, with additional milestone payments contingent on the commercial success of DURECT's lead drug candidate, larsucosterol, before December 31, 2045 [2][3]. - The tender offer for DURECT's outstanding shares commenced on August 12, 2025, and the merger is anticipated to be completed in the third quarter of 2025 [2][3]. Product Development - DURECT is focused on developing epigenetic therapies, particularly larsucosterol, which is in clinical development for treating alcohol-associated hepatitis (AH) and has received Fast Track and Breakthrough Therapy designations from the FDA [5][6].