Durect
DURECT Corporation was a pre-commercial specialty biopharmaceutical company developing larsucosterol, a Breakthrough Therapy-designated drug candidate for alcohol-associated hepatitis, using its proprietary bioresorbable polymer-based drug delivery platform. The company was acquired by Bausch Health in September 2025.
- Company typePrivate
- Founded1998
- HeadquartersCupertino, United States
- Headcount51–100
- GTM typeB2B
- OfferingHardware or Manufacturing
What Durect does
DURECT Corporation was a specialty biopharmaceutical company founded in 1998 and headquartered in Cupertino, California, focused on developing innovative therapeutics for acute organ injuries and chronic diseases. The company's lead asset was larsucosterol (DUR-928), an investigational drug candidate for the treatment of alcohol-associated hepatitis — a serious acute liver condition with high mortality and no FDA-approved pharmacological treatment prior to larsucosterol's development. Larsucosterol received FDA Breakthrough Therapy Designation, recognizing its potential as a first-in-class treatment, and the company served hepatology and gastroenterology patient populations through clinical-stage development rather than commercial channels.
DURECT's underlying technology platform centered on proprietary bioresorbable polymer-based drug delivery systems, including epichlorohydrin-based polymer systems and lipid-based formulations, used in controlled drug release, medical implant matrices, and tissue engineering scaffolds. The company had built this technology base over approximately 25 years, supplemented by historical acquisitions such as Southern Biosystems (2001) and IntraEAR (1999). Pre-commercial throughout its independent operating life, DURECT had no established commercial distribution, no publicly listed product pricing, and no recurring product revenue; its activities were limited to scientific communications, investor relations, and clinical development.
The company's business model was pre-commercial R&D funded by capital markets rather than product sales. DURECT financed operations through multiple equity and debt rounds, including a $20 million Oxford Finance-led financing in 2014, a $42.5 million round in February 2021, and a $15 million registered direct offering in July 2023. In September 2025, Bausch Health Companies Inc. completed the acquisition of DURECT for approximately $63 million ($1.75 per share), with potential additional milestone payments of up to $350 million tied to larsucosterol development and commercialization, converting DURECT into a wholly-owned subsidiary within Bausch Health's Salix gastrointestinal segment.
Durect firmographics
Firmographics- Name
- Durect
- Legal name
- DURECT Corporation
- Website
- https://durect.com
- Company type
- Private
- Founded year
- 1998
- Operating status
- Acquired
- Headcount range
- 51–100 employees
- Short description
- DURECT Corporation was a pre-commercial specialty biopharmaceutical company developing larsucosterol, a Breakthrough Therapy-designated drug candidate for alcohol-associated hepatitis, using its proprietary bioresorbable polymer-based drug delivery platform. The company was acquired by Bausch Health in September 2025.
- Ownership category
- akta.pro rank
Durect industry classification
Industry- Product category
- Specialty Pharmaceuticals
- NAICS
- Pharmaceutical Preparation Manufacturing (325412)
- SIC
- Pharmaceutical Preparations (2834)
- akta.pro primary industry
- Biodegradable Polymers & Resins (PLA, PHA, PBS, PBAT) (IMAEAOAA)
Keywords
Where Durect is headquartered
LocationHeadquarters
- HQ city
- Cupertino
- HQ country
- United States
- HQ region
- North America
Markets served
Durect business model
Business model- GTM type
- B2B
- Offering type
- Hardware or Manufacturing
- Cost components
- Technology or R&D, Personnel, Operations
Distribution channels1 record
Marketing channels1 record
Durect product offering
Product offeringCore offering
DURECT Corporation is a specialty biopharmaceutical company developing innovative therapeutics based on proprietary bioresorbable and lipid-based polymer drug delivery technologies. Its lead product candidate is larsucosterol (DUR-928), which received FDA Breakthrough Therapy Designation for the treatment of alcohol-associated hepatitis, a severe acute liver condition with no approved pharmacological therapy. The company historically generated no commercial product revenue, operating as a clinical-stage R&D organization prior to its September 2025 acquisition by Bausch Health Companies Inc.
Product overview
DURECT Corporation was a biopharmaceutical company focused on the development and commercialization of novel therapeutics based on its lipid-based drug delivery technology. The company's primary focus was on larsucosterol, a drug candidate for alcohol-associated hepatitis that received FDA Breakthrough Therapy Designation. DURECT's technology platform centered on lipid-based formulations for drug delivery applications. The company was acquired by Bausch Health Companies Inc. in September 2025 for approximately $63 million, with potential additional milestone payments of up to $350 million.
Differentiator
Problem solved
Functional benefit
Products and services
- Larsucosterol (DUR-928) Larsucosterol is DURECT's lead investigational drug candidate (also known as DUR-928) being developed for the treatment of alcohol-associated hepatitis, a severe acute liver condition with high mortality and no FDA-approved pharmacological therapy. The asset has received FDA Breakthrough Therapy Designation, signaling potential substantial improvement over existing treatments, and is intended for hepatologists and hospital-based liver specialists managing severe AH patients.
Quantifiable outcome
- FDA Breakthrough Therapy Designation granted for larsucosterol in alcohol-associated hepatitis
Companies that use Durect
Customer profileSegments1 record
Ideal customer profiles1 record
Durect technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature1 record
Durect partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- Bausch Health Companies Inc.coreBausch Health Companies Inc. completed its acquisition of DURECT Corporation in September 2025. DURECT became a wholly-owned subsidiary of Bausch Health, which acquired all outstanding shares for $1.75 per share, totaling approximately $63 million, with potential additional milestone payments of up to $350 million tied to the development and commercialization of larsucosterol for alcohol-associated hepatitis. The acquisition was intended to expand Bausch Health's hepatology portfolio and strengthen its growth platform within the Salix segment.
Scale indicators2 records
Recent moves6 records
Expansion highlights4 records
Durect competitors and assessment
Company assessmentEmerging players
- Terns Pharmaceuticals: Clinical-stage biopharma with TERN-501 (THR-β agonist) for MASH and other liver disease candidates. Comparable in liver disease focus at an earlier development stage.
Direct peers
- Viking Therapeutics: Clinical-stage biopharma with pipeline candidates for metabolic and liver diseases, including VK2809 for MASH. Comparable in clinical-stage development profile and small-cap specialty positioning.
- Galectin Therapeutics: Clinical-stage company developing belapectin for liver fibrosis and NASH cirrhosis. Comparable in liver disease focus, pre-commercial development stage, and small-cap specialty positioning.
- Genfit: French biotech developing elafibranor (approved as Iqirvo for PBC) and other candidates for liver diseases including MASH. Comparable in liver disease specialty focus and small-to-mid-cap scale.
- Madrigal Pharmaceuticals: Specialty biopharma focused on liver diseases, with FDA-approved Rezdiffra (resmetirom) for MASH. Most directly comparable in liver disease therapeutic focus and specialty pharma positioning.
- Akero Therapeutics: Clinical-stage biopharma developing efruxifermin (FGF21 analog) for compensated cirrhosis due to MASH. Comparable in therapeutic focus on advanced liver disease and similar late-stage clinical positioning.
- CymaBay Therapeutics: Was a specialty pharma focused on liver diseases (seladelpar for PBC), acquired by Gilead Sciences in 2024. Comparable in liver disease focus and being absorbed by a larger pharma acquirer.
- Albireo Pharma: Was a specialty liver disease company (Bylvay/odevixibat for PFIC and Alagille syndrome), acquired by Ipsen in 2023. Comparable in rare/specialty liver disease focus and acquisition by larger pharma.
- Intercept Pharmaceuticals: Was a specialty liver disease company developing obeticholic acid for NASH and other liver conditions, ultimately acquired by Alfasigma. Comparable in liver disease focus and acquisition outcome for a single-asset narrative.
Broad incumbents
- Gilead Sciences: Large biopharmaceutical company with a significant liver disease franchise including the recently acquired CymaBay for PBC. Provides broad market context for liver disease therapeutics and represents the strategic-acquirer archetype for DURECT's buyer.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat2 records
Key risks5 records
Key highlights5 records
Customer concentration
Durect social profiles
Digital presenceDurect financial estimates
Financial estimateRevenue estimate
Valuation estimate
Durect leadership team
Management profileNumber of profiles
Profiles5 records
Durect funding detail
Funding detailFunding overview
Funding rounds3 records
Investors1 record
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Durect M&A and investment
M&A and investmentM&A2 records
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Durect
What does Durect do?
DURECT Corporation is a specialty biopharmaceutical company developing innovative therapeutics based on proprietary bioresorbable and lipid-based polymer drug delivery technologies. Its lead product candidate is larsucosterol (DUR-928), which received FDA Breakthrough Therapy Designation for the treatment of alcohol-associated hepatitis, a severe acute liver condition with no approved pharmacological therapy. The company historically generated no commercial product revenue, operating as a clinical-stage R&D organization prior to its September 2025 acquisition by Bausch Health Companies Inc.
Is Durect a public or private company?
Durect is a private company. It is classified as corporate owned and is currently acquired.
When was Durect founded?
Durect was founded in 1998. It employs 51 to 100 people.
Where is Durect based?
Durect is headquartered in Cupertino, United States, in the North America region.
Who are Durect's main competitors?
Terns Pharmaceuticals is listed as an emerging player. Direct peers are Viking Therapeutics, Galectin Therapeutics, Genfit, Madrigal Pharmaceuticals, Akero Therapeutics, CymaBay Therapeutics, Albireo Pharma and Intercept Pharmaceuticals. Gilead Sciences is listed as a broad incumbent.
Does Durect have an API?
No public API is recorded for Durect.
What industry is Durect in?
Durect's product category is Specialty Pharmaceuticals. Its primary akta.pro industry code is IMAEAOAA, Biodegradable Polymers & Resins (PLA, PHA, PBS, PBAT). Its NAICS code is 325412 and its SIC code is 2834.