DURECT (DRRX) Q2 2025 earnings summary

Executive summary

• Entered into a definitive agreement for acquisition by Bausch Health at $1.75/share plus up to $350M in milestone CVRs, with closing expected in Q3 2025.

• Lead drug larsucosterol showed positive trends in Phase 2b for alcohol-associated hepatitis and received FDA Breakthrough Therapy and Fast Track designations.

• Completed sale of ALZET product line in November 2024 for $17.5M, now classified as discontinued operations.

• Ongoing operations focus on epigenetic therapies and select excipient product sales.

Financial highlights

• Q2 2025 total revenues were $447K, down from $646K in Q2 2024; six-month revenues were $768K, down from $1.1M year-over-year.

• Net loss from continuing operations was $2.3M for Q2 2025, down from $3.7M in Q2 2024; six-month net loss was $6.5M, down from $11.3M year-over-year.

• Cash, cash equivalents, and investments totaled $6.7M at June 30, 2025, compared to $12.0M at December 31, 2024.

• Operating expenses for Q2 2025 were $3.25M, down from $4.84M in Q2 2024.

• Research and development expenses for Q2 2025 were $1.2M, down from $2.2M in Q2 2024; SG&A expenses were $2.1M, down from $2.6M.

Outlook and guidance

• Management expects research and development and SG&A expenses to remain comparable or decrease in the near term.

• Company anticipates continued operating losses and negative cash flows; substantial doubt exists about ability to continue as a going concern without additional funding.

• Pending merger restricts ability to raise capital or pursue strategic transactions until closing.

• Merger with Bausch Health expected to close in Q3 2025, subject to regulatory and shareholder approvals.

• Potential for up to $350M in milestone payments tied to larsucosterol sales if achieved by 2045.