Bausch Health Companies Inc. (NYSE:BHC) is set to acquire DURECT Corporation (NASDAQ:DRRX) in a $63 million deal, with potential for an additional $350 million in milestone payments. The acquisition will focus on DURECT’s lead asset larsucosterol, which has received Breakthrough Therapy Designation for treating alcoholic hepatitis/AH.

Alcoholic hepatitis/AH is a severe form of alcohol-associated liver disease that led to ~164,000 hospital admissions in the US in 2021. Bausch Health’s acquisition of larsucosterol strengthens its commitment to hepatology, with plans to advance the molecule through a Phase 3 program to address the unmet medical need for approved treatments.

Bausch Health Companies Inc. (NYSE:BHC) is a diversified specialty pharmaceutical and medical device company, while DURECT Corporation (NASDAQ:DRRX) is a biopharmaceutical company focusing on epigenetic therapies. BHC’s acquisition of DRRX aims to leverage DRRX’s expertise in epigenetic modulation for the treatment of serious and life-threatening conditions.

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Read more at Yahoo Finance: Bausch Health to Acquire DURECT Corporation in $63M Deal to Advance Liver Disease Treatment