On July 29, 2025, Bausch Health Companies Inc. (NYSE/TSX: BHC), based in Laval, Quebec, announced a definitive agreement to acquire DURECT Corporation (NASDAQ: DRRX) for approximately US$63 million (C$85 million) in upfront cash. The transaction involves a tender offer of US$1.75 per share, representing a premium of approximately 191% to the 30-day volume-weighted average price and 217% to the closing price of DURECT’s common stock on July 28, 2025. The agreement also includes potential net sales milestone payments of up to US$350 million (C$472 million) in aggregate, subject to certain adjustments. Bausch Health will acquire DURECT’s novel epigenetic modulator, larsucosterol, which has shown promising results in Phase 2 trials for the treatment of alcoholic hepatitis (AH) - a severe, life-threatening liver condition with no FDA- or EMA-approved therapies and high mortality, accounting for approximately 164,000 hospital admissions in the U.S. in 2021.

Larsucosterol has FDA Breakthrough Therapy Designation, and Bausch plans to initiate a global Phase 3 trial evaluating 90-day survival in severe AH patients. The acquisition complements Bausch’s RED-C Phase 3 program investigating rifaximin SSD in cirrhotic patients. The transaction is subject to the tender of a majority of DURECT’s shares and customary closing conditions and is expected to close in Q3 2025. Centerview Partners LLC is acting as exclusive financial advisor and Sullivan & Cromwell LLP as legal advisor to Bausch Health. Locust Walk is the exclusive financial advisor and Orrick, Herrington & Sutcliffe LLP is legal advisor to DURECT.

The transaction was completed on September 11, 2025.