S&P 500 cuts losses as Nvidia climbs ahead of results
Investing.com -- Bausch Health Companies Inc. (NYSE:BHC) stock rose 2.2% while Durect Corporation (NASDAQ:DRRX) shares soared 263% after the companies announced a definitive agreement for Bausch Health to acquire Durect.
The acquisition includes Durect’s novel therapeutic molecule, larsucosterol, which has shown promising results in Phase 2 trials for treating alcoholic hepatitis (AH). Under the terms of the agreement, Bausch Health will pay $1.75 per share in an all-cash transaction, representing an upfront consideration of approximately $63 million at closing.
The purchase price represents a premium of approximately 191% to Durect’s 30-day volume-weighted average trading price ended on July 28, 2025. The deal also includes the potential for two additional net sales milestone payments of up to $350 million in aggregate if achieved before specific deadlines.
"This announcement is fundamental progress on our Strategic Priority - Innovation," said Thomas J. Appio, Chief Executive Officer of Bausch Health. "It demonstrates our commitment to hepatology and finding new ways to address unmet medical needs."
Alcoholic hepatitis is a life-threatening form of alcohol-associated liver disease that accounted for approximately 164,000 hospital admissions in the U.S. in 2021. There is currently no FDA or EMA approved treatment for the condition.
The acquisition complements Bausch Health’s ongoing Phase 3 program for rifaximin SSD being studied in cirrhotic patients globally. A registrational Phase 3 program to evaluate larsucosterol for treating severe AH is being planned as a randomized, double-blind, placebo-controlled, multi-center study with 90-day survival as the primary endpoint.
The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions including a majority of Durect’s outstanding shares being tendered.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.