DURECT Reports Q4 Loss, Lags Revenue Expectations

DURECT Corporation reported a quarterly loss of $0.06 per share, missing analysts' expectations and reflecting ongoing financial challenges. Despite a reduction in research and development and selling, general, and administrative expenses, total revenues fell to $0.45 million, significantly below estimates. The company achieved a debt-free status after selling its ALZET product line, which allowed them to focus on the development of their lead asset, larsucosterol, which has received FDA breakthrough therapy designation for treating alcohol-associated hepatitis. DURECT plans to initiate a Phase 3 trial for larsucosterol, pending funding, with topline results expected within two years. Institutional investors have shown interest in DURECT, as evidenced by recent increases in stakes by several hedge funds. However, the company faces challenges, including a notice from Nasdaq for non-compliance with minimum bid price requirements.