JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
LAVAL, Quebec/CUPERTINO, California - Bausch Health Companies Inc. (NYSE:BHC) (TSX:BHC) announced Tuesday it has reached a definitive agreement to acquire DURECT Corporation (NASDAQ:DRRX) in an all-cash transaction valued at approximately $63 million, with potential additional milestone payments of up to $350 million. According to InvestingPro data, DURECT’s current market capitalization stands at $17.16 million, with the company showing a weak overall financial health score of 1.72.
The deal centers on DURECT’s lead asset larsucosterol, an epigenetic modulator with FDA Breakthrough Therapy Designation being developed for alcoholic hepatitis (AH), a life-threatening liver condition with no currently approved treatments.
Under the terms of the agreement, Bausch Health will pay $1.75 per share, representing a premium of approximately 217% to DURECT’s closing price on Monday. The transaction is expected to close in the third quarter of 2025, subject to customary conditions including tender of a majority of DURECT’s outstanding shares. InvestingPro analysis reveals that DURECT has been quickly burning through cash, though it maintains more cash than debt on its balance sheet, with a current ratio of 1.23.
Larsucosterol has shown promising results in Phase 2 trials for AH, which accounted for approximately 164,000 hospital admissions in the U.S. in 2021. Bausch Health plans to advance the drug into a Phase 3 registrational program.
"There is a significant unmet need in the treatment of patients with AH given the high mortality rate and that there are no currently approved treatments," said Jonathan Sadeh, Executive Vice President and Chief Medical Officer at Bausch Health.
The acquisition complements Bausch Health’s existing hepatology portfolio, which includes an ongoing Phase 3 program for rifaximin SSD in cirrhotic patients.
James E. Brown, President and CEO of DURECT, stated, "We chose this transaction with Bausch Health because we believe it provides significant value for our stakeholders, both immediately and in the long term."
Centerview Partners is serving as financial advisor to Bausch Health, while Locust Walk is advising DURECT on the transaction, according to the press release statement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.