Bausch Health's Strategic Acquisition of DURECT Corporation Unveiled
Bausch Health Completes Acquisition of DURECT Corporation
Bausch Health Companies Inc. (NYSE: BHC), a leading global pharmaceutical company, has successfully finalized its tender offer to acquire DURECT Corporation. This acquisition signifies a significant expansion of Bausch Health's hepatology portfolio, particularly with the inclusion of larsucosterol, which is designated as an FDA Breakthrough Therapy for the treatment of alcohol-associated hepatitis (AH).
Details of the Acquisition
Under the terms of this acquisition, Bausch Health will pay $1.75 in cash for each outstanding share of DURECT, amounting to approximately $63 million in total upfront payments. Furthermore, there is potential for two additional milestone payments that could reach $350 million, contingent upon the achievement of certain sales targets by a specified timeline.
Larsucosterol: A Promising Therapeutic
The focal point of this acquisition is larsucosterol, DURECT's novel epigenetic modulator which has shown considerable promise in treating alcohol-associated hepatitis. Currently, no effective therapies exist for AH; patients often rely on corticosteroids which can have inadequate long-term effects. With a registrational Phase 3 clinical trial in development, larsucosterol offers hope for a more effective treatment protocol for patients suffering from severe cases of AH.
Leadership Insights
Thomas J. Appio, Chief Executive Officer of Bausch Health, expressed enthusiasm following the completion of the acquisition. He noted the urgent need for innovative therapies to address alcohol-associated hepatitis, a condition that contributes to numerous hospitalizations annually. Appio emphasized that integrating larsucosterol aligns with Bausch Health’s strategic commitment to advancing healthcare solutions in areas of unmet medical necessity.
Market Implications
As of September 10, 2025, the tender offer's deadline, approximately 19,984,767 shares, representing 62% of DURECT’s outstanding shares, were tendered. Following the merger, which occurred effectively without a vote due to the terms outlined in Delaware General Corporation Law, DURECT will operate as a wholly-owned subsidiary of Bausch Health. This transition marks an important change in the market dynamics as DURECT shares will cease trading on Nasdaq.
Advisory Teams
The acquisition was supported by a team of financial and legal advisors. Centerview Partners LLC served as the exclusive financial advisor to Bausch Health while Sullivan & Cromwell LLP provided legal counsel. For DURECT, Locust Walk acted as the financial advisor with legal support from Orrick, Herrington & Sutcliffe LLP, ensuring that both parties navigated the complexities of this significant transaction with expertise.
About Bausch Health
Bausch Health Companies Inc. is a global pharmaceutical firm dedicated to improving health outcomes through innovative solutions. The company develops a diverse array of products predominantly in sectors such as gastroenterology, hepatology, and neurology. With the integration of larsucosterol, Bausch Health strengthens its position in the pharmaceutical space, particularly in addressing liver diseases.
About DURECT Corporation
DURECT Corporation specializes in pioneering epigenetic therapies to treat severe health conditions, particularly acute organ injuries. The company's lead asset, larsucosterol, is a significant advancement in the treatment of alcohol-associated hepatitis and holds FDA Fast Track and Breakthrough Therapy designations.
Frequently Asked Questions
What did Bausch Health acquire in the deal with DURECT?
Bausch Health acquired DURECT Corporation along with its lead asset, larsucosterol, aimed at treating alcohol-associated hepatitis.
What is larsucosterol?
Larsucosterol is a novel drug candidate developed by DURECT that targets alcohol-associated hepatitis, marked as an FDA Breakthrough Therapy.
How much did Bausch Health pay for DURECT shares?
Bausch Health paid $1.75 per share for approximately $63 million to complete the acquisition of DURECT Corporation.
What milestones could Bausch Health achieve from the acquisition?
There are potential milestone payments of up to $350 million related to net sales achievements tied to the performance of larsucosterol.
How will this acquisition impact Bausch Health?
This acquisition strengthens Bausch Health's hepatology pipeline and enhances its ability to offer innovative therapies for conditions with limited treatment options.
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