#United States #Lafayette Instrument #DURECT #ALZET #Cupertino

DURECT Corporation's Strategic Shift

In a significant move, DURECT Corporation (Nasdaq: DRRX), a promising biopharmaceutical entity known for its innovative epigenetic therapies, has announced the sale of its ALZET® line of osmotic pumps to Lafayette Instrument Co. for $17.5 million. This decision marks a pivotal moment in DURECT's ongoing strategy to streamline its portfolio and enhance its focus on core therapeutic developments.

Understanding the Transaction

The agreement between DURECT and Lafayette Instrument Co. entails the sale of specific assets and liabilities associated with the ALZET product line. Lafayette Instrument, a part of the Branford Castle Partners II, L.P. investment portfolio, is expected to integrate the ALZET pumps into its life science instrument offerings. This deal not only bolsters Lafayette’s product range but also solidifies DURECT’s financial foundation as it continues to prioritize and innovate its core therapies.

DURECT's President and CEO, James E. Brown, D.V.M., remarked, "The sale of the ALZET product line aligns perfectly with our strategy to concentrate on our lead drug candidate, larsucosterol, aimed at treating alcohol-associated hepatitis (AH). This strategic realignment allows us to strengthen our cash reserves and extend our financial runway into the first half of 2025, facilitating the funding of our future Phase 3 clinical trial for larsucosterol."

As part of this transition, DURECT has also successfully paid off its remaining obligations under a loan agreement with Oxford Finance LLC, thus enhancing its financial flexibility.

The Significance of ALZET

The ALZET product line consists of miniature, implantable osmotic pumps designed primarily for research applications. These devices offer a reliable method for the continuous and controlled delivery of drugs, hormones, and other agents in laboratory settings - an innovation that has resulted in over 22,000 published scientific studies utilizing ALZET pumps.

Despite their impressive applications in animal research, it's crucial to note that these pumps are not intended for human use. The pumps allow for multiple routes of delivery including systemic administration via implantation, attachment to a catheter for intravenous use, or localized release into specific tissues or organs, thus facilitating a variety of significant research outcomes.

DURECT’s Future Directions

Looking forward, DURECT Corporation is firmly committed to advancing its lead product candidate, larsucosterol. This investigational medication is being developed for patients suffering from alcohol-associated hepatitis and holds promise, having received both Fast Track and Breakthrough Therapy designation from the FDA. The company’s strategy emphasizes transforming treatment modalities for serious ailments by focusing on epigenetic therapies that correct dysregulated DNA methylation, a hallmark found in many life-threatening conditions.

In addition to larsucosterol, DURECT's innovative platform technology, SABER®, has already resulted in the FDA-approved POSIMIR® formulation for non-opioid analgesia. This demonstrates DURECT's commitment not only to research but also to the commercialization of effective healthcare solutions.

Conclusion

The sale of the ALZET product line to Lafayette Instrument Co. marks a crucial transition for DURECT Corporation as it shifts its focus towards enhancing its pipeline of therapeutic developments. By fortifying its financial standing, DURECT is poised to impact the biopharmaceutical landscape significantly, particularly in the treatment of alcohol-associated conditions. Industry observers will keenly watch how DURECT navigates this transition as they work towards their clinical goals.

For more information about DURECT's ongoing projects and future developments, visit DURECT’s website or follow them on social media platforms.