Core Insights - Bausch Health has successfully completed the acquisition of DURECT Corporation, acquiring all outstanding shares for $1.75 per share, totaling approximately $63 million in cash [1][3] - The acquisition adds larsucosterol, an FDA Breakthrough Therapy for alcohol-associated hepatitis, to Bausch Health's hepatology pipeline, addressing a significant unmet medical need [2][3] Transaction Details - The acquisition includes potential milestone payments of up to $350 million, contingent on achieving specific sales targets before December 31, 2045 [1] - Approximately 19,984,767 shares of DURECT, representing about 62% of outstanding shares, were validly tendered in the offer [3] - Following the merger, DURECT will operate as a wholly owned subsidiary of Bausch Health, and its shares will be delisted from Nasdaq [4] Product and Market Context - Larsucosterol is positioned as a novel treatment for alcohol-associated hepatitis, a condition currently lacking approved therapies, with existing treatments often inadequate [2] - The urgency for effective treatments is underscored by a 30% mortality rate within 90 days of hospitalization for patients with severe alcohol-associated hepatitis [2] Strategic Alignment - The acquisition aligns with Bausch Health's strategic focus on research and development in areas of unmet medical need, particularly in liver diseases [3] - Bausch Health aims to enhance its portfolio with innovative therapies that address significant health challenges [6]

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].