Bausch Health Acquires DURECT for $63 Million, Adds Breakthrough AH Therapy to Pipeline

Bausch Health has completed its acquisition of DURECT Corporation for $63 million upfront, bringing DURECT's lead asset, larsucosterol, into Bausch Health's hepatology pipeline. Larsucosterol has FDA Breakthrough Therapy Designation for alcohol-associated hepatitis, which has a 30% mortality rate. The deal includes up to $350 million in potential milestone payments tied to future net sales.

Bausch Health has completed its acquisition of Durect Corporation for $63 million upfront, bringing Durect's lead asset, larsucosterol, into Bausch Health's hepatology pipeline. Larsucosterol has FDA Breakthrough Therapy Designation for alcohol-associated hepatitis, a condition with a 30% mortality rate. The deal includes up to $350 million in potential milestone payments tied to future net sales.

This strategic move by Bausch Health focuses on overlooked diseases where there is real demand for innovation and less competitive pressure. The company plans to kick off a Phase 3 trial soon to test whether larsucosterol can deliver meaningful results for patients. The deal could grow far larger over time if the therapy makes it to market as a commercial success.

Bausch Health's share price saw a modest boost, reflecting investor interest but also the cautious nature of drug development bets. High-stakes late-stage trials are known for their unpredictability, but if larsucosterol succeeds, the company could see both financial and reputational gains. Success here might also strengthen investor appetite for biopharma deals centered around treatments for rare or neglected diseases.

Alcohol-associated hepatitis lands thousands in US hospitals each year, yet treatment choices remain slim. Regulatory efforts like the FDA's fast-track label are motivating drugmakers to focus on these underserved areas, driving more acquisitions and investment. Moves like this one are part of a bigger shift, as pharma firms target urgent medical needs that have long been overlooked — potentially reshaping global health if these therapies pay off.