DURECT Corporation Reports Q2 2025 Financial Results, Net Loss Decreases to $2.3 Million

DURECT Corporation reported its financial results for the second quarter of 2025, revealing a net loss of $2.3 million, or $0.07 per share, compared to a net loss of $3.7 million, or $0.12 per share, for the same period in 2024. For the six months ended June 30, 2025, the company recorded a net loss of $6.5 million, down from $11.3 million in the prior year. Total revenues for the second quarter were $447,000, a decrease from $646,000 in the same quarter of 2024, primarily due to lower collaborative research and development revenue, which fell to $428,000 from $606,000 year-over-year.

DURECT's total assets decreased to $12.5 million as of June 30, 2025, down from $18.3 million at the end of 2024. The decline in cash and cash equivalents was significant, dropping to $6.5 million from $11 million. The company’s accumulated deficit increased to $603.8 million, reflecting ongoing operational losses. Operating expenses for the second quarter were $3.25 million, a reduction from $4.84 million in the same period last year, driven by lower research and development costs, which were $1.18 million compared to $2.25 million in 2024.

Strategically, DURECT is in the process of being acquired by Bausch Health Americas, Inc., with a definitive agreement announced on July 28, 2025. Under the terms of the agreement, Bausch Health will acquire DURECT for $1.75 per share in cash, with potential milestone payments of up to $350 million based on future sales of DURECT's lead product candidate, larsucosterol. The transaction is expected to close in the third quarter of 2025, pending regulatory approvals and other customary conditions.

Operationally, DURECT has seen a reduction in its workforce, with 13 employees as of August 8, 2025, down from 34 a year earlier. The company has also terminated its license agreement with Innocoll Pharmaceuticals for the commercialization of POSIMIR, which is not expected to materially impact its financials. DURECT continues to focus on the development of larsucosterol, which has received Breakthrough Therapy Designation from the FDA for the treatment of alcohol-associated hepatitis.

Looking ahead, DURECT has expressed concerns regarding its ability to continue as a going concern, citing insufficient cash resources to fund operations for the next 12 months. The company plans to seek additional funding through collaborations, equity financing, or other means to support its ongoing research and development efforts. The pending acquisition by Bausch Health is seen as a critical step in addressing these financial challenges.