Bausch Health to Acquire DURECT and Breakthrough Liver Disease Candidate Larsucosterol for $63M Upfront

Bausch Health (BHC) announced it will acquire DURECT Corporation for $1.75 per share in cash plus a contingent value right (CVR), for a total upfront payment of approximately $63 million—a 191% premium to the 30-day VWAP and 217% to the last close13.

The CVR offers DURECT shareholders potential milestone payments up to $350 million1.

DURECT's lead candidate, larsucosterol, is an epigenetic modulator with FDA Breakthrough Therapy Designation for the treatment of alcoholic hepatitis (AH), a severe and life-threatening liver condition with no approved therapies in the US or Europe123.

Larsucosterol showed positive results in Phase 2 trials for AH; Bausch Health intends to launch a Phase 3 trial and leverage its hepatology capabilities for further development and possible commercialization123.

The acquisition strengthens Bausch Health’s position in hepatology, complementing its existing liver disease portfolio, notably expanding its efforts in treating complications from liver diseases globally23.

The tender offer is expected to close in Q3 2025, pending majority tender and standard conditions; untendered DURECT shares will be acquired by follow-on merger at the same terms1.

The acquisition deal occurred amid significant market interest, with DURECT shares rising 240% on announcement3.

Sources:

1. https://www.stocktitan.net/sec-filings/BHC/sc-to-c-bausch-health-companies-inc-tender-offer-communication-c582d5d3a298.html

2. https://www.durect.com/2025/07/bausch-health-to-acquire-durect-corporation-strengthening-commitment-to-developing-innovative-solutions-for-patients-with-liver-disease/

3. https://www.thepharmaletter.com/pharmaceutical/bausch-health-expands-liver-disease-portfolio-with-durect-corp-buy