DURECT Corporation (DRRX): Business Model Canvas [Dec-2025 Updated]

You're looking at DURECT Corporation (DRRX) post-acquisition, and honestly, the old playbook is gone; the new model is laser-focused on maximizing the value of larsucosterol and the SABER® drug delivery tech under Bausch Health. As your analyst, I see a company that banked an upfront $63 million from the deal, leaving them with $6.7 million in cash as of June 30, 2025, to drive that critical Phase 3 trial for severe alcohol-associated hepatitis. This isn't about broad pipelines anymore; it's about hitting milestones tied to that potential first-in-class therapy and managing key licensing deals with partners like Gilead and Santen. Dive below to see exactly how this asset-centric structure maps out across all nine building blocks of their new Business Model Canvas.

DURECT Corporation (DRRX) - Canvas Business Model: Key Partnerships

You're looking at the structure of DURECT Corporation as of late 2025, which is now a wholly owned subsidiary of Bausch Health Companies Inc. The key partnerships reflect the transition of its primary asset, larsucosterol, into a larger corporate pipeline, alongside legacy agreements.

Bausch Health Companies Inc. as the new parent company and primary funder

Bausch Health Companies Inc. successfully completed the acquisition of DURECT Corporation on September 11, 2025. This transaction effectively makes Bausch Health the primary funder and steward of DURECT's late-stage assets, most notably larsucosterol for alcoholic hepatitis (AH).

The deal structure involved significant financial commitments:

• Upfront cash payment at closing: approximately $63 million.
• Per-share cash consideration: $1.75 per share.
• Potential future net sales milestone payments: up to $350 million in the aggregate.
• Milestone payment deadline: The earlier of the 10-year anniversary of the first U.S. commercial sale or December 31, 2045.

The upfront consideration represented a premium of approximately 217% to DURECT's closing stock price on July 28, 2025. At closing, approximately 19,984,767 shares were tendered, representing about 62% of the then-outstanding common stock.

Gilead Sciences, Inc. for the long-acting injectable HIV product utilizing SABER® technology

While this was a significant historical partnership leveraging the SABER® technology, the agreement is no longer active as of late 2025. Gilead Sciences, Inc. provided notice that it was terminating the License Agreement effective December 22, 2020. At the time of the original July 2019 agreement, the financial structure included:

Payment Type	Initial Value
Upfront Payment	$25 million
Development/Regulatory Milestones (Potential)	Up to $75 million
Sales Based Milestones (Potential)	Up to $70 million
Option for each additional SABER-based HIV/HBV product	An additional $150 million in combined milestones/royalties per product

Still, the technology platform remains a key resource, even if this specific license was terminated.

Santen Pharmaceutical Co., Ltd. for the sustained-release SABER® ophthalmology product

DURECT entered into a license agreement with Santen Pharmaceutical Co., Ltd. in December 2014 for a sustained-release SABER® ophthalmology product. Santen controls and funds the entire development program. The initial financial terms included:

• Upfront fee paid to DURECT: $2 million in cash.
• Contingent payments: Cash payments upon achievement of certain development and commercialization milestones.
• Post-commercialization: DURECT receives a tiered royalty on product sales.

There are no reported financial updates or milestone achievements for this partnership in the 2025 fiscal year data available.

Contract Research Organizations (CROs) for executing the registrational Phase 3 trial

The registrational Phase 3 trial for larsucosterol in severe AH is now under the purview of Bausch Health, following the September 2025 acquisition. DURECT's plan, contingent on funding, was to initiate this trial in 2025, with topline results anticipated within two years of initiation. The trial design is a randomized, double-blind, placebo-controlled, multi-center study conducted in the U.S. The primary endpoint is 90-day survival. The design incorporated feedback from the FDA following the Breakthrough Therapy Designation meeting in 2024.

Academic and clinical research centers for ongoing drug development

The development pathway for larsucosterol has heavily relied on clinical research centers. The data supporting the Phase 3 design came from the Phase 2b AHFIRM trial, which was published in NEJM Evidence in January 2025. This trial provided critical validation for the planned Phase 3 study.

Key statistics from the preceding Phase 2b trial include:

• Total patients enrolled in AHFIRM trial: 307.
• Total clinical centers involved: 62.
• U.S. clinical centers: 46.
• Observed mortality reduction (U.S. high-dose group at 90-day mark): 58% reduction.

Finance: draft 13-week cash view by Friday.

DURECT Corporation (DRRX) - Canvas Business Model: Key Activities

Executing the registrational Phase 3 trial for larsucosterol in severe AH remains the primary operational focus, contingent on securing sufficient funding. DURECT Corporation's goal was to begin this trial in 2025, with topline results anticipated within two years of initiation. The trial design, which incorporates feedback from the FDA Type B meeting held under Breakthrough Therapy Designation in 2024, centers on a primary endpoint of 90-day survival. The estimated cost for this pivotal Phase 3 trial is approximately $20 million. This activity addresses a significant unmet need, as Alcohol-associated Hepatitis (AH) causes over 40,000 deaths annually in the U.S. The Phase 2b AHFIRM trial results, published in NEJM Evidence in January 2025, showed that larsucosterol reduced 90-day mortality in U.S. patients by 57% (30 mg dose) and 58% (90 mg dose) compared with placebo.

Managing and supporting existing SABER® technology licensing agreements involves tracking performance under existing deals. For the agreement with Indivior related to PERSERIS, DURECT Corporation recognized earn-out revenues of $172,000 for the three months ended March 31, 2025, down from $422,000 for the same period in 2024. This agreement is set to provide quarterly earn-out payments into 2026.

SABER Technology Agreement Metric	Value	Period/Status
PERSERIS Earn-out Revenue	$172,000	Three Months Ended March 31, 2025
PERSERIS Earn-out Revenue	$422,000	Three Months Ended March 31, 2024
Potential Milestone Payments (Indivior)	Up to $130 million	Total Potential

Securing regulatory approvals is directly tied to the larsucosterol development plan. DURECT Corporation is leveraging the existing Fast Track Designation and the Breakthrough Therapy Designation granted by the U.S. Food and Drug Administration (FDA) for the treatment of AH. The key interaction point was the Type B meeting with the FDA that took place in 2024, which informed the final Phase 3 trial design.

Maintaining and defending the intellectual property portfolio for larsucosterol and SABER® is a foundational activity. As of January 30, 2025, DURECT Corporation and its subsidiaries held a global portfolio comprising approximately 1104 patents/applications. Of this total, 131 patents have been issued. The active status for these filings is reported at more than 24.73% of the total portfolio.

• Total Global Patents/Applications (as of Jan 2025): 1104
• Issued Patents: 131
• Active/Pending Patents/Applications: More than 24.73%

Exploring new partnership options for the commercialization of POSIMIR® became a critical activity following the termination of the U.S. license agreement with Innocoll Pharmaceuticals Limited, which was effective in May 2025. On May 6, 2025, DURECT Corporation received all data and know-how related to POSIMIR from Innocoll. The original agreement with Innocoll included potential milestone payments of up to $130 million plus tiered low to mid double-digit royalties on U.S. sales. The company is now evaluating the next steps for commercializing this FDA-approved, SABER® technology-based product.

DURECT Corporation (DRRX) - Canvas Business Model: Key Resources

You're looking at the core assets that DURECT Corporation, now a wholly owned subsidiary of Bausch Health, brought to the table as of late 2025. These aren't just line items; they are the foundation of the company's value proposition.

Proprietary Drug Assets and Delivery Technology

The most critical tangible assets revolve around the pipeline and the delivery system that underpins approved products. You need to know the status of the lead candidate and the platform that has already yielded a commercial product.

• Larsucosterol, the epigenetic modulator, holds FDA Breakthrough Therapy Designation for the treatment of alcohol-associated hepatitis (AH).
• The proprietary SABER® (Sucrose Acetate Isobutyrate Extended Release) drug delivery platform is a proven technology.
• POSIMIR® (bupivacaine solution) for infiltration use, which utilizes the SABER® platform, is FDA-approved and exclusively licensed to Innocoll Pharmaceuticals for US commercialization.

Intellectual Property and Financial Position

The IP portfolio is the moat around the technology, and the cash position, especially post-acquisition, defines the immediate runway and transaction value. Here's the quick math on the financial structure as reported around the closing of the Bausch Health transaction in September 2025.

Resource Detail	Metric/Amount	Date/Context
Cash, Cash Equivalents and Investments	$6.7 million	As of June 30, 2025
Upfront Acquisition Payment (Cash)	$63 million	Per the agreement with Bausch Health at closing
Potential Milestone Payments (Aggregate)	Up to $350 million	Contingent on future net sales of larsucosterol
Total Global Patents/Applications	1104	As of January 30, 2025
Issued Patents	131	As of January 30, 2025

That upfront payment of $63 million was the immediate cash realization for shareholders, separate from the potential upside tied to larsucosterol's future success.

Human Capital

Beyond the balance sheet and the molecules, the expertise to navigate late-stage development and regulatory hurdles is a key resource. What this estimate hides is the specific headcount, but the nature of the resource is clear.

• Specialized scientific and clinical development personnel necessary for managing the registrational Phase 3 trial design for larsucosterol in severe AH.
• Management team with experience navigating complex drug development and regulatory pathways, including securing designations like Fast Track and Breakthrough Therapy.

Finance: draft 13-week cash view by Friday.

DURECT Corporation (DRRX) - Canvas Business Model: Value Propositions

You're looking at the core value DURECT Corporation, now a wholly owned subsidiary of Bausch Health, brought to the table, especially concerning its lead asset, larsucosterol, and its platform technology.

Potential first FDA-approved therapeutic for severe alcohol-associated hepatitis (AH)

The primary value proposition centered on larsucosterol being positioned as the potential first FDA-approved therapeutic option for patients with severe alcohol-associated hepatitis (AH). This is a critical differentiator because, currently, there are no approved therapies for AH.

The urgency is clear from the mortality data associated with the condition:

• Mortality at 28 days was approximately 20% in a prospective 2021 study of 2,581 AH patients.
• Mortality at 90 days was approximately 31% in that same 2021 study.
• Retrospective data showed 90-day mortality as high as 29% across 8,184 patients from 1971 to 2016.

The Phase 2b AHFIRM trial provided the clinical foundation for this value, showing significant impact in U.S. patients:

• Larsucosterol demonstrated nearly a 60% reduction in 90-day mortality among U.S. patients compared to placebo.
• Specifically, the 30 mg dose showed a 57% reduction (p=0.014) in 90-day mortality versus placebo in U.S. patients.
• The 90 mg dose showed a 58% reduction (p=0.008) in 90-day mortality versus placebo in U.S. patients.

This potential first-in-class status is underscored by the FDA Breakthrough Therapy Designation granted to larsucosterol for AH.

Larsucosterol's mechanism targeting dysregulated DNA methylation for acute organ injury

Larsucosterol offers a novel mechanism by targeting the underlying molecular pathology of AH, which is a form of acute organ injury. It acts as an epigenetic modulator.

Here's the mechanism translated into its functional value:

Mechanism Component	Target/Action	Relevance to AH
Larsucosterol	Binds to and inhibits DNA methyltransferases (DNMTs)	DNMTs are elevated in AH patients
Effect	Inhibits activity of epigenetic enzymes	Addresses abnormal gene regulation (hypermethylation)

This approach aims to transform treatment beyond supportive care or corticosteroids, which have limited efficacy.

Sustained-release drug delivery solutions via the patented SABER® technology

The SABER® technology represents a platform value proposition, enabling long-acting injectable formulations. While larsucosterol was the immediate focus, the technology itself has proven value in other collaborations.

Consider the financial validation from a prior collaboration utilizing SABER® technology:

• An upfront payment of $25 million was received from Gilead for an HIV product utilizing SABER®.
• An additional milestone payment of $10 million was earned from that same program.
• The potential for future milestones in that program included up to $65 million (development/regulatory) and up to $70 million (sales-based), plus tiered royalties.

The SABER® platform also underpins POSIMIR® (bupivacaine solution) for infiltration use, showing the breadth of this proprietary asset.

Reduced development risk and secured funding for larsucosterol via Bausch Health

The acquisition by Bausch Health in September 2025 fundamentally changed the risk profile and provided immediate capital for the planned Phase 3 trial. DURECT Corporation's financial position as of mid-2025 highlighted the need for this external support.

The transaction details quantify this value transfer:

• Upfront Cash Consideration: Approximately $63 million, paid at closing ($1.75 per share).
• DURECT Q2 2025 Cash Position: Cash, cash equivalents, and investments were $6.7 million as of June 30, 2025, down from $12.0 million at December 31, 2024.
• Potential Future Value: Up to $350 million in aggregate net sales milestone payments.

The deal structure secured the immediate path forward for the registrational Phase 3 trial, which DURECT had stated was contingent on securing sufficient funding.

The Phase 3 trial itself is designed with a primary endpoint of 90-day survival, with topline results expected within two years of trial initiation, which DURECT aimed to start in 2025.

DURECT Corporation (DRRX) - Canvas Business Model: Customer Relationships

You're looking at the customer relationships for DURECT Corporation as of late 2025, which is a unique point in time since the company was acquired by Bausch Health Companies Inc. in September 2025. This acquisition fundamentally shifted the primary relationship structure.

Strategic, long-term licensing relationships with pharmaceutical partners are now largely subsumed under the Bausch Health umbrella, but the history shows a shift. For instance, the licensing agreement for POSIMIR with Innocoll Pharmaceuticals Limited terminated on May 6, 2025, resulting in DURECT Corporation regaining all related data and know-how. The company is actively evaluating next steps to find a new partner for POSIMIR commercialization.

The most significant relationship is the new parent structure. The transaction to acquire DURECT Corporation was completed in September 2025, with an upfront cash payment of approximately $63 million for all outstanding shares at $1.75 per share. This deal includes the potential for two additional net sales milestone payments totaling up to $350 million in the aggregate, contingent on achieving milestones before December 31, 2045, or the 10-year anniversary of the first U.S. commercial sale of larsucosterol. The tender offer saw approximately 62% of DURECT common stock tendered initially.

Here's a quick look at the key financial and transactional relationship data points leading up to the acquisition:

Metric	Value / Status	Date / Period
Upfront Acquisition Payment	$63 million	September 2025 Closing
Maximum Potential Milestones	Up to $350 million	Post-Acquisition Contingency
Acquisition Price Per Share	$1.75 per share (Cash)	September 2025
Q2 2025 Total Revenues	$447,000	Three months ended June 30, 2025
Q1 2025 Net Loss	$4.2 million	Three months ended March 31, 2025
Cash, Cash Equivalents, Investments	$6.7 million	As of June 30, 2025
POSIMIR License Termination Date	May 6, 2025	Innocoll Pharmaceuticals

The direct, collaborative relationship with the FDA centers entirely on larsucosterol for severe alcoholic hepatitis (AH). The FDA granted larsucosterol Breakthrough Therapy Designation (BTD), recognizing its potential for a life-threatening condition with no approved treatments. This designation has led to specific guidance; the FDA has agreed that a single Phase 3 trial could be sufficient to support a New Drug Application (NDA) filing, provided it meets its objectives. The trial design incorporated feedback received during a Type B meeting with the FDA in 2024.

Engagement with clinical investigators and key opinion leaders (KOLs) is foundational to advancing larsucosterol. DURECT Corporation stated it is guided by the conviction that trust and transparency across research and medicine are vital to transformation. This involves active collaboration with researchers and physicians to revolutionize medicine.

The company's operational focus, prior to the acquisition, was heavily reliant on securing funding to initiate the planned registrational Phase 3 trial for larsucosterol in 2025, with topline results anticipated within two years of initiation. This need for capital influenced the strategic alignment with Bausch Health. The internal reporting structure, as of late 2025, is now fully integrated into the Bausch Health parent company structure following the completion of the merger on September 11, 2025, when DURECT shares ceased trading on Nasdaq.

Key elements of this professional engagement include:

• Incorporating FDA feedback into the Phase 3 trial design.
• Publishing Phase 2b AHFIRM trial data in NEJM Evidence in January 2025.
• Focusing the Phase 3 primary endpoint on 90-day survival.
• Continuing dialogue to explore funding for the Phase 3 trial.

DURECT Corporation (DRRX) - Canvas Business Model: Channels

You're looking at how DURECT Corporation moved its assets-specifically larsucosterol-to the market, which, as of late 2025, is now entirely managed by Bausch Health Companies Inc. following the acquisition.

Direct licensing agreements with major pharmaceutical companies (B2B)

The primary B2B channel shifted from managing multiple agreements to a singular, definitive transaction. DURECT Corporation's lead asset, larsucosterol, was acquired by Bausch Health on September 11, 2025. This transaction effectively transferred the future commercialization channel.

The financial structure of this channel shift provides concrete numbers:

Transaction Component	Amount/Value
Upfront Cash Payment at Closing	Approximately $63 million
Per Share Upfront Consideration	$1.75 per share in cash
Maximum Aggregate Net Sales Milestone Payments	Up to $350 million
DURECT Q1 2025 Total Revenues (Pre-Acquisition)	$0.3 million

Prior to this, DURECT was evaluating options for commercializing POSIMIR following the termination of its licensing agreement with Innocoll Pharmaceuticals, which saw data and know-how transferred on May 6, 2025. For context, DURECT's total collaborative research and development and other revenue in 2023 was $2,277 thousand.

Clinical trial sites and investigators for drug development and data generation

The clinical channel relies on investigators and sites to generate the data required for regulatory submission. The Phase 2b AHFIRM trial, which informed the Phase 3 design, was a key component of this channel.

Here's a breakdown of the patient and site engagement for the pivotal Phase 2b study:

• Total patients enrolled in AHFIRM trial: 307.
• Total international centers involved: 62.
• U.S. sites enrolled: 46.
• Percentage of patients enrolled by U.S. sites: 76%.
• Number of treatment arms: Three (Placebo, 30 mg larsucosterol, 90 mg larsucosterol).

DURECT Corporation was planning a registrational Phase 3 trial in the U.S. to enroll about 200 patients, with topline results expected within two years of initiation.

Scientific publications (e.g., NEJM Evidence in January 2025) for data dissemination

Dissemination through peer-reviewed journals is a critical channel for establishing scientific credibility. The results of the AHFIRM Phase 2b trial were published in NEJM Evidence on January 28, 2025. This publication validated the data guiding the Phase 3 design.

Key efficacy trends presented in the publication include:

Dose Arm	90-Day Mortality Reduction vs. Placebo (Overall Population)	90-Day Mortality Reduction vs. Placebo (U.S. Subgroup)
Larsucosterol 30 mg	41% (p=0.068)	57% (p=0.014)
Larsucosterol 90 mg	35% (p=0.124)	58% (p=0.008)

The FDA granted larsucosterol Breakthrough Therapy Designation and Fast Track Designation for Alcohol-Associated Hepatitis (AH).

Bausch Health's global commercial infrastructure for future product launch

Post-acquisition, Bausch Health's existing infrastructure becomes the primary channel for future commercialization of larsucosterol, which addresses a disease with approximately 30% mortality within 90 days of hospitalization.

The commercial pathway is now defined by the merger terms:

• Acquisition completed on September 11, 2025.
• Bausch Health is a global, diversified pharmaceutical company.
• The transaction adds larsucosterol to Bausch Health's hepatology pipeline, complementing their existing Phase 3 rifaximin SSD program.
• Milestone payments are tied to net sales achieved before the earlier of the 10-year anniversary of first U.S. commercial sale or December 31, 2045.

Finance: review the post-merger integration budget for commercial scale-up by end of Q4 2025.

DURECT Corporation (DRRX) - Canvas Business Model: Customer Segments

You're looking at the core groups DURECT Corporation targets with its technology and pipeline as of late 2025. It's a mix of potential commercial partners, a specific patient population facing a severe, unmet need, and the financial community watching the larsucosterol development closely, especially given the pending acquisition.

Large pharmaceutical companies seeking novel drug delivery platforms (SABER® licensees)

This segment values DURECT Corporation's patented SABER Delivery System for creating long-acting injectables. While the focus is heavily on larsucosterol, the platform itself attracts partners looking for sustained release capabilities, which can span from one day up to three months from a single administration for both human and veterinary use. You see this interest reflected in past deals, even if current large pharma human licensees aren't explicitly named in the latest reports.

Here's a snapshot of what these licensing arrangements look like:

Partner/Context	Technology Focus	Financial Structure Example
Santen Pharmaceutical Co., Ltd. (2014)	Sustained Release Ophthalmology Product	$2 million upfront fee plus tiered royalty and development/commercialization milestones.
Gilead Sciences (Terminated 2020)	Long-Acting Injectable HIV Product	Potential for up to $65 million in development/regulatory milestones and up to $70 million in sales milestones, plus $150 million per additional product option.
Thorn BioScience LLC (2025 Update)	Veterinary Products (Reproductive)	Consideration undisclosed; product in late-stage NADA approval process.

The SABER technology is the key value driver here. It's a patented system designed to provide sustained release via bioerodible injectable depots. It definitely simplifies dosing regimens for partners.

Patients suffering from severe alcohol-associated hepatitis (AH)

This is the critical patient group for DURECT Corporation's lead candidate, larsucosterol. Severe AH is life-threatening, and honestly, there are no FDA-approved therapies right now. The urgency here is high, which is why the FDA granted larsucosterol both Fast Track and Breakthrough Therapy Designations.

The scale of the problem, which these patients represent, drives the market opportunity:

• Alcoholic Hepatitis Treatment Market valued at $3.18 Billion in 2025.
• Market projected to reach $6.05 Billion by 2035.
• The United States represents the largest patient pool globally.

Mortality data underscores the severity these patients face. A retrospective analysis of 77 studies showed overall mortality at 29% at 90 days for 8,184 patients. More recently, a global study of 2,581 AH patients reported mortality around 31% at 90 days. DURECT Corporation's planned Phase 3 trial is targeting 90-day survival as its primary endpoint.

Hepatologists and critical care specialists treating acute liver injury

These clinicians are the prescribers and decision-makers for patients with severe AH. They are currently limited to off-label treatments, such as Prednisolone, often in combination with other agents. They are the ones who need a proven, targeted therapy like larsucosterol, which is designed to address the underlying epigenetic mechanisms (inhibiting elevated DNA methyltransferases) in AH patients.

Their segment is influenced by the following clinical realities:

• Need for therapies with demonstrated efficacy in improving 90-day survival.
• The Phase 2b AHFIRM trial results, published in NEJM Evidence in January 2025, provide the clinical validation they look for.
• The company aims to start the registrational Phase 3 trial in 2025, which will be the definitive data set for adoption.

Timely treatment is key; variations in time from hospitalization to first dose highlighted its importance in severe AH subgroup analyses.

Investors seeking returns on contingent value rights (CVRs) tied to larsucosterol milestones

This group is focused on the financial structure surrounding the larsucosterol development, particularly in light of the announced acquisition by Bausch Health. The value proposition here is the potential upside beyond the immediate transaction price. You, as an investor, are tracking the triggers for these contingent payments.

The terms of the August 2025 Merger Agreement define this segment's near-term financial focus:

Consideration Type	Amount / Value	Condition / Date
Upfront Consideration (Cash)	Approximately $63 million total ($1.75 per share of common stock).	At closing, expected in Q3 2025.
Contingent Milestone Payments	Up to $350 million in aggregate (two payments).	If achieved before the earlier of 10 years post-first commercial sale of larsucosterol in the US or December 31, 2045.

Financially, DURECT Corporation's cash position as of June 30, 2025, was $6.7 million, down from $12.0 million at the end of 2024, making the successful funding or closing of the Bausch Health transaction crucial for continuing development and realizing these milestone values. For Q2 2025, total revenues were reported at $447,000, with a net loss of $2.3 million.

Finance: draft sensitivity analysis on the $350M milestone trigger dates by next Tuesday.

DURECT Corporation (DRRX) - Canvas Business Model: Cost Structure

You're looking at the cost side of the ledger for DURECT Corporation leading up to its acquisition by Bausch Health in late 2025. The cost structure was heavily weighted toward research, development, and the overhead required to keep the lights on while pursuing the Phase 3 trial for larsucosterol.

High Research and Development (R&D) expenses represented the single largest operating cost component based on the last reported standalone financials. This reflects the commitment to advancing the lead candidate.

• R&D expense for the three months ended June 30, 2025: $1.176 million.
• R&D expense for the six months ended June 30, 2025: The cumulative expense was $9.64 million on a full-year basis for the TTM ending June 2025, though the six-month figure from the Q2 release is not explicitly provided in the same table as the quarterly R&D.

General and Administrative (G&A) expenses covered the necessary corporate overhead, including executive salaries, facilities, and the ongoing costs to maintain the intellectual property portfolio for its various platforms and candidates.

Here's a look at the Selling, General & Administrative (SG&A) figures available:

Period	SG&A Expense (in thousands USD)
Three Months Ended March 31, 2025	$2,577
Trailing Twelve Months (TTM) ending June 2025	$9.88 million
Fiscal Year 2024	$10.48 million

Clinical trial costs for the registrational Phase 3 study of larsucosterol were a major expected future cost. However, following the definitive agreement in July 2025 and subsequent acquisition completion in September 2025, this burden shifted.

• The registrational Phase 3 trial for severe AH is now primarily funded by Bausch Health.
• The upfront consideration for the acquisition was approximately $63 million in cash.
• Potential future milestone payments related to the asset's success could total up to $350 million in the aggregate.

Costs of manufacturing and supplying key excipients for SABER®-based products were a smaller component of the cost structure, especially after DURECT Corporation divested a product line associated with delivery technology.

• DURECT Corporation sold its ALZET® product line, which included osmotic pumps, for $17.5 million in November 2024.
• Cost of product revenues for the three months ended June 30, 2025, was $7 thousand.

DURECT Corporation (DRRX) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for DURECT Corporation (DRRX) as the company moves toward its acquisition by Bausch Health, which really shifts the near-term financial focus. Honestly, the structure is dominated by the deal terms right now, with legacy revenue streams becoming secondary.

The most concrete, near-term cash flow component comes directly from the merger agreement announced in July 2025. This is the upfront money you can count on once the tender offer and subsequent merger close, which was expected in the third quarter of 2025.

Revenue Stream Component	Financial Amount	Basis/Condition
Upfront Cash Payment (Bausch Health Acquisition)	$63 million	All-cash payment at closing of the merger agreement.
Contingent Milestone Payments (Larsucosterol)	Up to $350 million (aggregate)	Based on achieving specified net sales milestones for larsucosterol before December 31, 2045, or the 10-year anniversary of first commercial sale.

This transaction structure means DURECT Corporation's revenue profile is heavily weighted toward these large, discrete payments tied to the larsucosterol asset, rather than consistent product sales for the immediate future.

For the smaller, ongoing revenue components, we look at the reported quarterly figures leading up to the expected close. You'll see that the company still generates revenue from its existing commercial products and collaborations, though these amounts are relatively small compared to the acquisition consideration.

Here's a look at the most recent reported revenue data:

• Collaborative research and development revenue was reported as $428,000 for the second quarter ended June 30, 2025.
• Total revenues for the second quarter ended June 30, 2025, were $447,000.
• Total revenues for the first quarter ended March 31, 2025, were $0.3 million.

Also, DURECT Corporation maintains revenue streams from royalties on net sales of its licensed SABER® products, such as SucroMate™ Equine. While the specific dollar amount from these royalties in 2025 isn't broken out separately in the latest filings to isolate it from other sources, it remains a component of the total revenue picture.

If you look at the comparison to the prior year's second quarter, the total revenue for Q2 2024 was $0.65 million, so the $447,000 in Q2 2025 shows a year-over-year decline in that segment before the acquisition closes. Finance: draft 13-week cash view by Friday.