Bausch Health Companies Inc. (BHC) entered a merger agreement on July 29, 2025, to acquire DURECT Corporation (DRRX) in a deal worth $63 million.
Under the terms of the agreement, Bausch Health will pay $1.75 per share in an all-cash transaction, with the potential for two additional net sales milestone payments of up to $350 million in the aggregate if the milestone is achieved before the earlier of the 10 year anniversary of the first commercial sale in the United States and December 31, 2045.
The cash consideration of $1.75 per share represents a premium of 218.18% from the stock’s last close.
DURECT is a late-stage biopharmaceutical company developing epigenetic therapies to treat serious conditions like alcoholic hepatitis (AH), with its lead candidate, larsucosterol, targeting abnormal gene regulation linked to organ injury.
Bausch Health is a global pharmaceutical company that develops, manufactures, and markets a broad range of prescription, over-the-counter, and medical device products, with a focus on eye health, gastroenterology, dermatology, and neurology.
Through this deal, Bausch Health will acquire larsucosterol, a new treatment developed by Durect. Larsucosterol is a molecule that helps control which genes in the body are turned on or off, which can influence how cells behave and respond to disease. It has shown encouraging results in Phase 2 trials for treating alcoholic hepatitis (AH), a severe liver condition caused by long-term heavy alcohol use. Bausch Health has the experience needed to continue developing and potentially bring this treatment to market.
A Phase 3 clinical trial is being planned to test how safe and effective larsucosterol is for treating patients with severe alcoholic hepatitis (AH). The study will be randomized, double-blind, and placebo-controlled, meaning neither patients nor doctors will know who receives the real treatment or the placebo. It will take place at multiple medical centers, and the main goal is to measure patient survival after 90 days.
The deal is expected to close in the third quarter of 2025.
DURECT was advised by Locust Walk on financial matters and by Orrick, Herrington & Sutcliffe on legal matters. Bausch Health received financial advice from Centerview Partners and legal counsel from Sullivan & Cromwell.
Bausch Health is acquiring DURECT at 31.44 times the sales.
For further details about the merger transaction, visit the Deal Metrics page here:
Deal Metrics for the acquisition of DURECT Corporation (DRRX) by Bausch Health Companies Inc. (BHC)
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– A spread history chart of the merger from announcement through eventual completion or failure.
– Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
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– A history of deal updates.
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Editor’s Note: Baranjot Kaur contributed to this article