DURECT (DRRX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were $2.2 million, a slight increase from $2.1 million in Q2 2023, driven by higher collaboration revenue.

• Net loss for Q2 2024 was $3.7 million, a significant improvement from $11.2 million in Q2 2023; six-month net loss was $11.3 million vs. $23.2 million year-over-year.

• R&D expenses dropped to $2.2 million from $7.9 million year-over-year, mainly due to completion of the AHFIRM trial.

• Cash and investments totaled $15.8 million as of June 30, 2024, down from $29.8 million at year-end 2023, with a quarterly cash burn of $5.8 million.

• Larsucosterol, the lead candidate, showed a 41% and 35% reduction in 90-day mortality in Phase 2b AHFIRM trial; FDA granted Breakthrough Therapy Designation in May 2024.

Financial highlights

• Product revenue for Q2 2024 was $1.6 million, flat year-over-year; six-month product revenue was $2.9 million, slightly down from $3.0 million.

• Operating expenses for Q2 2024 were $5.6 million, down from $12.1 million in Q2 2023.

• Debt decreased to $12.5 million at June 30, 2024 from $16.7 million at December 31, 2023.

• Operating cash outflow for the first half of 2024 was $10.4 million, improved from $18.6 million in the prior year period.

• SG&A expenses decreased to $3 million from $3.8 million in the prior year.

Outlook and guidance

• Phase III trial for larsucosterol in alcohol-associated hepatitis is expected to start before year-end 2024, pending adequate funding, with topline data anticipated in the second half of 2026.

• Operating expenses for the second half of 2024 projected at $3.5–$4 million per quarter, excluding loan payments.

• Management expects R&D and SG&A expenses to remain comparable to Q2 2024 levels in the near term.

• Collaborative revenue is expected to decrease due to Indivior's discontinuation of PERSERIS.

• Company anticipates continued losses and negative cash flows for the foreseeable future.