DURECT Surge: Acquisition Deal Sends DRRX Up 263% — What Retail Investors Should Know

DURECT (DRRX) shares exploded by over 260% following a landmark acquisition agreement with Bausch Health. At $1.75 per share, the deal offers a massive 217% premium over DRRX’s July 28 closing price, plus contingency milestone payouts worth up to $350 million, tied to the future sales success of larsucosterol — DURECT’s lead drug candidate for alcoholic hepatitis (AH).Durect+15PR Newswire+15StocksToTrade+15

Why the Stock Spiked: The Deal Details

All-cash tender offer of $1.75 per share with no financing contingencies lowers execution risk significantly.

Acquiring shareholders also receive one non-tradable Contingent Value Right (CVR) per share, which offers potential upside of $100M if sales hit $500M/year, and $250M if sales reach $1B/year both before 2045.Investing.com Nigeria+4Stock Titan+4PR Newswire+4

Bausch Health gains access to larsucosterol, a therapy with FDA Breakthrough Therapy designation for AH, a severe condition with no approved treatment available.Durect+10Durect+10Investing.com India+10

The deal has board approval from DURECT and is expected to close in Q3 2025, pending regulatory and shareholder approvals.Durect+15PR Newswire+15Stock Titan+15

What Investors Should Know: Drug Pipeline & Milestones

Larsucosterol has shown positive Phase 2b results (AHFIRM trial), and a Phase 3 registrational program is being planned with 90-day survival as the primary endpoint. The design incorporates recent FDA feedback.Stock Titan+10Durect+10Durect+10

Bausch Health’s hepatology expertise provides development scale and commercialization potential for larsucosterol—complementing its existing Phase 3 program for rifaximin SSD in cirrhosis.Durect+6Nasdaq+6Investing.com UK+6

Retail Investor Perspective: What This Means Now

For retail investors in DRRX, here’s how to think through the recent move:

Key Risks & Considerations

CVR Realization: Achieving $1B in annual sales by 2045 is ambitious—be prepared to discount CVR value.

Shareholder Rights Lawsuit: Halper Sadeh LLC is now investigating whether DRRX shareholders received fair value in the deal—possible legal claims may delay or modify terms.Durect+15Business Wire+15Morningstar+15Stock Titan+4PR Newswire+4Investing.com Nigeria+4Stock TitanDurect+2Durect+2Investing.com India+2

Regulatory Conditions: Closing depends on >50% tender participation, merger approvals, and antitrust clearance.

Final Takeaway

This acquisition represents a near-term win for DRRX shareholders: generous upfront cash value and optional upside through the CVRs tied to larsucosterol’s commercial success. For retail investors, the situation presents a clear decision point: tender for lock-in value or hold for long-term potential—but with recognition of the milestones, timelines, and legal dynamics at play.

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