Durect Corporation reported its financial results for the first quarter of 2025, revealing a net loss of $4.2 million, a significant improvement from the $7.6 million loss recorded in the same period of 2024. Total revenues for the quarter were $321,000, down from $496,000 year-over-year, primarily due to decreased collaborative research and development revenue. The company attributed the decline to lower earn-out revenue from its collaboration with Indivior UK Limited regarding PERSERIS net sales. Operating expenses also decreased to $4.5 million from $6.8 million, driven by reduced research and development costs, particularly related to the lead drug candidate, larsucosterol.
Durect's cash and cash equivalents stood at $8.1 million as of March 31, 2025, down from $11.2 million at the end of 2024. The company has expressed concerns regarding its liquidity, stating that it does not have sufficient cash resources to fund its planned operations for the next twelve months. This situation raises substantial doubt about its ability to continue as a going concern. The company plans to seek additional funding through various means, including public offerings and collaborations, to support its ongoing research and development efforts.
In terms of operational developments, Durect has made strategic moves, including the termination of its license agreement with Innocoll Pharmaceuticals for the commercialization of POSIMIR, a post-surgical pain product. The company is now evaluating its options for finding a new partner to commercialize POSIMIR. Additionally, Durect completed the sale of its ALZET product line in November 2024, which has been classified as discontinued operations in its financial statements.
As of May 9, 2025, Durect had a total of 14 employees, a reduction from previous headcounts, reflecting its ongoing efforts to streamline operations and reduce costs. The company is focused on advancing larsucosterol, which is in clinical development for alcohol-associated hepatitis and has received Breakthrough Therapy Designation from the FDA. Durect aims to initiate a Phase 3 clinical trial for larsucosterol in 2025, pending sufficient funding.
Looking ahead, Durect anticipates continued losses and negative cash flows from operations. The company is actively seeking to enhance its collaborative research and development revenue and is exploring potential new partnerships to bolster its financial position. The management remains cautious about the future, emphasizing the need for additional capital to sustain its operations and strategic initiatives.
About DURECT CORP
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