DURECT Acquired by Bausch Health Companies Inc.

DURECT Corporation has completed its acquisition by Bausch Health Companies Inc., a global pharmaceutical company. The transaction brings together DURECT's expertise in epigenetic modulation with Bausch Health's diversified portfolio and global reach.

Under the terms of the agreement, Bausch Health acquired all outstanding shares of DURECT for $1.75 per share in cash, representing a total upfront cash payment of approximately $63 million at closing. The transaction also includes the potential for two additional net sales milestone payments of up to $350 million in the aggregate (subject to certain adjustments in respect of a retention plan) if the milestones are achieved before the earlier of the 10-year anniversary of the first commercial sale in the United States and December 31, 2045.

Orrick represented DURECT.

THE COMPANIES

DURECT (Nasdaq: DRRX) is a late-stage biopharmaceutical company pioneering the development of epigenetic therapies that target dysregulated DNA methylation to transform the treatment of serious and life-threatening conditions, including acute organ injury.

Bausch Health Companies Inc. (NYSE: BHC) (TSX: BHC) is a global, diversified pharmaceutical company that develops, manufactures and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, dentistry, aesthetics and international pharmaceuticals.

THE IMPACT

"There is an urgent need for treatments for alcohol-associated hepatitis, a disease that leads to significant hospitalizations each year. This addition supports our ongoing efforts to develop innovative therapies for liver diseases with limited or no current treatment options. The acquisition aligns with our strategic focus on purposeful R&D and advancing solutions in areas of unmet medical need." said Thomas J. Appio, Chief Executive Officer, Bausch Health.

This acquisition enables Bausch Health to expand its portfolio with DURECT's innovative epigenetic modulation platform, potentially accelerating the development of new treatments for acute organ injury and cancer. The combined resources and expertise are expected to enhance research capabilities and support the advancement of therapies that address serious and life-threatening conditions.

THE TEAM

Orrick's Stephen Thau and David Schwartz led the team that advised DURECT. The team also included Albert Vanderlaan, Jason D. Flaherty, David Sharrow, Craig Falls, Raniero D'Aversa, Alyssa Ohanian, Brian M. Blood, Jimmy Frost, Kayla Z. X. Southworth, Andrew Allen, Vernon Lin, Bailey Higgs, Catherine Conners and Amanda Morales.

LEARN MORE

• DURECT's news release
• Read More Orrick Client Results