Bausch Health Acquires DURECT for $63M, Potential Milestones Up to $350M.

Bausch Health Companies Inc. (BHC) is acquiring DURECT Corporation in a $63 million deal, with potential future milestone payments of up to $350 million. The acquisition aligns with BHC's hepatology development and commercialization expertise and could accelerate the clinical development and market availability of larsucosterol, a therapeutic molecule with potential in treating alcoholic hepatitis.

Bausch Health Companies Inc. (BHC), a global diversified pharmaceutical company, has announced a definitive agreement to acquire DURECT Corporation (DRRX) for approximately $63 million. The deal includes a novel therapeutic molecule, larsucosterol, which has shown promising results in treating alcoholic hepatitis (AH) in Phase 2 trials. The acquisition aligns with BHC's strategic priority to intensify focus on innovation and R&D, particularly in the hepatology space [1].

Larsucosterol, an epigenetic modulator, has demonstrated potential as the first FDA-approved therapeutic option for AH. AH is a severe form of alcohol-associated liver disease (ALD), characterized by inflammation and destruction of liver tissue. There is currently no FDA-approved treatment for AH, highlighting the significant unmet medical need. The acquisition of larsucosterol by BHC aims to accelerate its clinical development and commercialization, leveraging BHC's expertise in hepatology and existing pipeline of innovative treatments [1].

Under the terms of the definitive agreement, BHC will pay $1.75 per share in an all-cash transaction for an upfront consideration of approximately $63 million at closing. The transaction includes potential milestone payments of up to $350 million, contingent on the achievement of specific clinical and commercial milestones. The purchase price represents a premium of approximately 191% to the 30-day volume-weighted average trading price of DURECT's common stock ended on July 28, 2025 [1].

The acquisition is expected to close in the third quarter of 2025, pending the tendering of a majority of DURECT's outstanding shares and the satisfaction of customary closing conditions. Advisors Centerview Partners LLC and Sullivan & Cromwell LLP are serving as exclusive financial and legal advisors to BHC, respectively. Locust Walk and Orrick, Herington and Sutcliffe LLP are serving as exclusive financial and legal advisors to DURECT, respectively [1].

BHC's acquisition of DURECT Corporation and larsucosterol underscores its commitment to addressing unmet medical needs in hepatology. The deal aligns with BHC's strategic focus on innovation and its ambition to be a globally integrated healthcare company. The addition of larsucosterol to BHC's pipeline complements its ongoing Phase 3 program of soluble solid dispersion of rifaximin (rifaximin SSD) for cirrhotic patients, further strengthening its position in the hepatology market [1].

References:
[1] https://www.durect.com/2025/07/bausch-health-to-acquire-durect-corporation-strengthening-commitment-to-developing-innovative-solutions-for-patients-with-liver-disease/