Bausch Health Enhances Liver Disease Solutions with DURECT Acquisition

Bausch Health Expands Hepatology Pipeline Through DURECT Acquisition

Bausch Health Companies Inc., a leading global pharmaceutical entity, has successfully completed its acquisition of DURECT Corporation, a biopharmaceutical firm focused on innovating treatments for severe diseases. The deal, finalized on September 11, 2025, sees Bausch Health acquiring DURECT for $1.75 per share, totaling an upfront cash payment of approximately $63 million. The strategic acquisition is set to enhance Bausch Health's liver disease portfolio as it introduces DURECT's promising asset, larsucosterol, into its pipeline, which aims to address the pressing need for effective alcohol-associated hepatitis treatments.

The Significance of Larsucosterol

Larsucosterol is recognized for its innovative approach as an epigenetic modulator. It has received FDA Breakthrough Therapy Designation for the treatment of alcohol-associated hepatitis (AH), a condition that currently lacks approved therapies. Patients suffering from AH frequently depend on supportive care solutions like corticosteroids, often inadequately managing long-term treatment, leading to a significant mortality rate within three months of hospital admissions. The introduction of larsucosterol promises to improve outcomes for patients grappling with severe AH, with a Phase 3 clinical trial already in the planning stages to assess its safety and efficacy.

Bausch Health's Commitment to Liver Disease Treatment

Thomas J. Appio, the CEO of Bausch Health, expressed enthusiasm over the acquisition, noting it brings an advanced-stage therapy into their hepatology pipeline. "There is an urgent need for effective treatments for alcohol-associated hepatitis, and this acquisition is an important step in our commitment to developing solutions for liver diseases with limited treatment options," Appio stated. Bausch Health aims to leverage its resources in research and development to continue advancing innovative medicinal solutions.

Overview of the Acquisition Process

The tender offer extended by Bausch Health for the outstanding shares of DURECT expired at 5 PM EDT on September 10, 2025. Under this offer, approximately 62% of DURECT's outstanding shares were validly tendered. Upon acceptance, a subsidiary of Bausch Health undertook the necessary steps to merge with DURECT, establishing DURECT Corporation as a wholly owned subsidiary. Following this merger, trading of DURECT shares ceased on Nasdaq.

Future Implications

This acquisition aligns with Bausch Health’s strategic goals, further solidifying its position in the pharmaceutical industry. As a globally diversified company, Bausch Health not only develops a variety of products in specialties including gastroenterology and dermatology but also aims to be a trusted provider in healthcare. With larsucosterol, they are poised to make substantial progress in treating alcohol-associated hepatitis, addressing a significant gap in current therapeutic options.

DURECT's expertise in developing epigenetic therapies further strengthens Bausch's capabilities and broaden its reach in tackling serious medical conditions. Given the urgency conveyed by healthcare needs, the partnership heralds a new chapter for patients afflicted with liver diseases, potentially transforming the care landscape.

About Bausch Health and DURECT Corporation

Bausch Health Companies Inc., traded on both the NYSE and TSX as BHC, has garnered recognition for its relentless pursuit of better health care outcomes across various medical fields. Its portfolio is robust, underlining its commitment to improving lives through innovation. Meanwhile, DURECT Corporation is notable for pioneering groundbreaking biopharmaceutical developments aimed at addressing acute organ injuries and dysregulated DNA methylation, making it a pivotal player in the biotechnology landscape.

In conclusion, Bausch Health's acquisition of DURECT is not merely a financial transaction but a strategic move aimed at enhancing therapeutic offerings in liver disease management, ensuring safer and more effective treatment paths for patients worldwide. This acquisition is indeed a transformative step in addressing the critical needs of patients with alcohol-associated hepatitis.