DURECT Corporation Announces Sale of ALZET® Product Line to Lafayette Instrument Co. for $17.5 Million
DURECT (DRRX) has sold its ALZET® osmotic pumps product line to Lafayette Instrument Co. for $17.5 million. The transaction includes certain assets and liabilities associated with the ALZET line. DURECT used the proceeds to pay off its remaining obligations under the Oxford Finance term loan. The company states this sale strengthens its cash position and extends runway through first half of 2025, allowing focus on developing larsucosterol for alcohol-associated hepatitis (AH) and its planned Phase 3 clinical trial.
DURECT (DRRX) ha venduto la sua linea di prodotti pompe osmotiche ALZET® a Lafayette Instrument Co. per 17,5 milioni di dollari. La transazione include alcuni attivi e passivi associati alla linea ALZET. DURECT ha utilizzato i proventi per estinguere le sue rimanenti obbligazioni sotto il prestito a termine di Oxford Finance. L'azienda afferma che questa vendita rafforza la sua posizione di liquidità e allunga la sua disponibilità finanziaria fino alla prima metà del 2025, consentendo di concentrarsi sullo sviluppo del larsucosterolo per l'epatite associata all'alcol (AH) e sul suo piano per la sperimentazione clinica di Fase 3.
DURECT (DRRX) ha vendido su línea de productos bombas osmóticas ALZET® a Lafayette Instrument Co. por 17,5 millones de dólares. La transacción incluye ciertos activos y pasivos asociados con la línea ALZET. DURECT utilizó los ingresos para saldar sus obligaciones restantes bajo el préstamo a plazo de Oxford Finance. La compañía afirma que esta venta fortalece su posición de liquidez y extiende su margen financiero hasta la primera mitad de 2025, permitiendo concentrarse en el desarrollo de larsucosterol para la hepatitis asociada al alcohol (AH) y en su plan de ensayo clínico de Fase 3.
DURECT (DRRX)는 ALZET® 삼투압 펌프 제품 라인을 Lafayette Instrument Co.에 1,750만 달러에 판매했습니다. 이 거래는 ALZET 라인과 관련된 특정 자산과 부채를 포함합니다. DURECT는 수익금을 사용하여 Oxford Finance의 만기 대출에 대한 남은 의무를 상환했습니다. 회사는 이번 판매로 자금 위치가 강화되고 2025년 상반기까지 재정 여유가 확대되어 알코올 관련 간염(AH)용 larsucosterol 개발과 예정된 3상 임상 시험에 집중할 수 있다고 밝혔습니다.
DURECT (DRRX) a vendu sa gamme de produits pompes osmotiques ALZET® à Lafayette Instrument Co. pour 17,5 millions de dollars. La transaction inclut certains actifs et passifs associés à la ligne ALZET. DURECT a utilisé les fonds pour rembourser ses obligations restantes dans le cadre du prêt à terme d'Oxford Finance. La société déclare que cette vente renforce sa position de trésorerie et prolonge sa marge financière jusqu'au premier semestre 2025, ce qui lui permet de se concentrer sur le développement de larsucosterol pour l'hépatite associée à l'alcool (AH) et son essai clinique de phase 3 prévu.
DURECT (DRRX) hat seine ALZET® osmotischen Pumpen Produktlinie für 17,5 Millionen Dollar an Lafayette Instrument Co. verkauft. Die Transaktion umfasst bestimmte Vermögenswerte und Verbindlichkeiten, die mit der ALZET-Linie verbunden sind. DURECT verwendete die Einnahmen, um seine verbleibenden Verpflichtungen aus dem Oxford Finance-Darlehen zu begleichen. Das Unternehmen erklärt, dass dieser Verkauf seine Liquiditätsposition stärkt und die finanzielle Planung bis zur ersten Hälfte von 2025 verlängert, wodurch der Fokus auf die Entwicklung von Larsucosterol für alkoholassoziierte Hepatitis (AH) und die geplante Phase-3-Studie gerichtet werden kann.
- Received $17.5 million from sale of ALZET product line
- Extended cash runway through first half of 2025
- Eliminated debt obligations with Oxford Finance
- Improved financial flexibility for Phase 3 trial funding
- Divestment of revenue-generating product line
- Reduction in product portfolio diversification
Insights
The sale of ALZET for
While divesting revenue-generating assets typically raises concerns, this strategic realignment allows DURECT to focus resources on their core therapeutic development. The transaction's timing and value appear favorable given the company's current market position and urgent need for clinical trial funding. The debt clearance particularly strengthens their financial position for future capital raising activities.
Under the terms of the agreement, LIC paid DURECT
"As DURECT continues to prioritize developing larsucosterol for alcohol-associated hepatitis (AH), we have determined that the ALZET product line is no longer aligned with our long-term strategic priorities," said James E. Brown, D.V.M., President and Chief Executive Officer of DURECT. "This transaction strengthens our cash position and extends our cash runway through the first half of 2025. With the payment of the remainder of the Oxford term loan, we have greater financial flexibility as we seek financial resources to fund our planned Phase 3 clinical trial for larsucosterol in AH."
"ALZET osmotic pumps are a great addition to our life science instruments. We look forward to continuing a shared legacy of premier products that support life-changing research," said Ben Mangrich, Chief Executive Officer of Lafayette Instrument Company.
Aquilo Partners, L.P. acted as financial advisor and Wilson, Sonsini, Goodrich & Rosati acted as legal advisor to DURECT.
About ALZET
The ALZET product line consists of miniature, implantable osmotic pumps and accessories for research use in mice, rats and other laboratory animals. These pumps are neither approved nor intended for human use. ALZET pumps continuously deliver drugs, hormones and other test agents at controlled rates from one day to six weeks without the need for external connections, frequent handling or repeated dosing. In laboratory research, these infusion pumps can be used for systemic administration when implanted under the skin or in the body. They can be attached to a catheter for intravenous, intracerebral, or intra-arterial infusion or for targeted delivery, where the effects of a drug or test agent are localized in a particular tissue or organ. The wide use and applications of the ALZET product line is evidenced by the more than 22,000 published scientific references.
About DURECT Corporation
DURECT 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. Larsucosterol, DURECT's lead drug candidate, binds to and inhibits the activity of DNA methyltransferases, epigenetic enzymes that are elevated and associated with hypermethylation found in AH patients. Larsucosterol is in clinical development for the potential treatment of AH, for which the FDA has granted a Fast Track and a Breakthrough Therapy designation; MASH is also being explored. In addition, POSIMIR® (bupivacaine solution) for infiltration use, a non-opioid analgesic utilizing the innovative SABER® platform technology, is FDA-approved. For more information about DURECT, please visit www.durect.com and follow us on X (formerly Twitter) at https://x.com/DURECTCorp.
DURECT Forward-Looking Statements
This press release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, relating to: our plans to conduct a Phase 3 clinical trial of larsucosterol, the sufficiency of our capital requirements through the first half of 2025 and the potential uses of larsucosterol to treat patients with AH and potentially other indications. Actual results may differ materially from those contained in the forward-looking statements contained in this press release, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from those projected include, among other things, the risk that future clinical trials of larsucosterol are delayed or do not confirm the results from subset analyses of the AHFIRM trial, including geographic or other segmentation, or of earlier clinical or pre-clinical trials, or do not demonstrate the safety or efficacy of larsucosterol in a statistically significant manner; the risk that we do not raise sufficient capital to commence or complete the Phase 3 clinical trial of larsucosterol in patients with AH or continue to fund our operations, the risk that the FDA or other government agencies may require additional clinical trials for larsucosterol before approving larsucosterol for the treatment of AH, the risk that Breakthrough Therapy designation does not expedite the process for FDA approval and that larsucosterol may never be approved; and risks related to the sufficiency of our cash resources, our anticipated capital requirements, our ability to continue to meet the minimum bid price for continued listing on Nasdaq, and our ability to continue to operate as a going concern. Further information regarding these and other risks is included in DURECT's most recent Securities and Exchange Commission filings, including its annual report on Form 10-K for the year ended December 31, 2023 and quarterly report on Form 10-Q for the quarter ended September 30, 2024, under the heading "Risk Factors." These reports are available on our website www.durect.com under the "Investors" tab and on the SEC's website at www.sec.gov. All information provided in this press release is based on information available to DURECT as of the date hereof, and DURECT assumes no obligation to update this information as a result of future events or developments, except as required by law.
NOTE: POSIMIR® is a trademark of Innocoll Pharmaceuticals, Ltd. in the
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SOURCE DURECT Corporation
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