Bausch Health Companies Acquires Durect Corporation

Bausch Health Companies Inc., a global, diversified pharmaceutical company, has completed its previously announced tender offer to acquire Durect Corporation.

Under the terms of the agreement, Bausch Health acquired all outstanding shares of Durect for $1.75 per share in cash, representing a total upfront cash payment of approximately $63 million at closing. The transaction also includes the potential for two additional net sales milestone payments of up to $350 million in the aggregate (subject to certain adjustments in respect of a retention plan) if the milestones are achieved before the earlier of the 10-year anniversary of the first commercial sale in the United States and December 31, 2045.

The acquisition adds Durect’s lead asset, larsucosterol, a novel epigenetic modulator with FDA Breakthrough Therapy Designation for treatment of alcohol-associated hepatitis (AH), to Bausch Health’s hepatology pipeline. Currently, there are no approved therapies indicated to treat AH, and patients must rely on supportive care such as corticosteroids, which are often inadequate for long-term treatment and result in about 30% mortality within 90 days of hospitalization. A registrational Phase 3 program is currently being planned to evaluate the safety and efficacy of larsucosterol for the treatment of patients with severe AH.

“We are pleased to complete the acquisition of Durect, which brings larsucosterol into our hepatology pipeline as a promising advanced-stage therapy,” said Thomas J. Appio, CEO, Bausch Health. “This addition supports our ongoing efforts to develop innovative therapies for liver diseases with limited or no current treatment options. The acquisition aligns with our strategic focus on purposeful R&D and advancing solutions in areas of unmet medical need.”

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