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DURECT Corporation Reports Third Quarter 2021 Financial Results and Update of Programs

CUPERTINO, Calif., November 2, 2021/PRNewswire/ -- DURECT Corporation (Nasdaq: DRRX) today announced financial results for the three months ended September 30, 2021 and provided a corporate update.

“I am proud of the progress we have made in expanding clinical trial sites and the pace of enrollment in the AHFIRM study, particularly given the challenges faced by many of the hospitals where our study is being conducted in dealing with the Delta variant surge.” stated James E. Brown, DVM, President and CEO of DURECT. “I am also pleased with the progress made in our POSIMIR licensing process.”

Continued progress in clinical study site openings – DURECT has increased the total number of planned sites for the Phase 2b AHFIRM study to 60+. Since the last earnings call, the Company has opened an additional 10 clinical trial sites. There are now 36 global AHFIRM study sites open, more than 50% of the planned locations.

Opening of first ex-US sites – DURECT also recently opened the first ex-US study sites in Australia. This marks the beginning of the ex-US expansion of the AHFIRM study.

USAN Council name approved – The United States Adopted Names (USAN) Council has approved ‘larsucosterol’ as the nonproprietary (generic) name for DUR-928.

Progress with POSIMIR partnering – POSIMIR licensing negotiations continue to advance.

We will host a conference call today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time to discuss third quarter 2021 results and provide a corporate update:

The conference call will also be available by webcast on DURECT’s homepage at www.durect.com under the “Investors” tab. If you are unable to participate during the webcast, the call will be archived on DURECT’s website under “Event Calendar” in the “Investors” section.

Enrollment is ongoing in our Phase 2b study in subjects with severe acute AH to evaluate saFety and effIcacy of DUR-928 treatMent (AHFIRM). AHFIRM is a randomized, double-blind, placebo-controlled, international, multi-center Phase 2b study to evaluate the safety and efficacy of larsucosterol (also known as DUR-928) in approximately 300 patients with severe AH. The study is comprised of three arms targeting enrollment of approximately 100 patients each: (1) Placebo plus standard of care (SOC, which may include the use of methylprednisolone, a corticosteroid, at the discretion of the treating physician); (2) larsucosterol (30 mg); and (3) larsucosterol (90 mg). All patients in the trial receive supportive care. The primary outcome measure is 90-day survival rate for patients treated with larsucosterol compared to those treated with placebo plus SOC. The Company is targeting more than 60 clinical trial sites across the U.S., E.U., U.K., and Australia. Reflecting the life-threatening nature of AH and the lack of therapeutic options for this devastating condition, the FDA has granted larsucosterol Fast Track Designation for the treatment of AH. We believe demonstration of a robust survival benefit in the AHFIRM trial would support an NDA filing.

DURECT is a biopharmaceutical company committed to transforming the treatment of acute organ injury and chronic liver diseases by advancing novel and potentially lifesaving therapies based on its endogenous epigenetic regulator program. Larsucosterol (also known as DUR-928), the Company's lead drug candidate, binds to and inhibits the activity of DNA methyltransferases (DNMTs), epigenetic enzymes which are elevated and associated with hypermethylation found in AH patients. Larsucosterol is in clinical development for the potential treatment of alcohol-associated hepatitis (AH) for which FDA has granted a Fast Track Designation; non-alcoholic steatohepatitis (NASH) 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. Full prescribing information about POSIMIR, including the Boxed Warning, can be found at www.posimir.com. For more information about DURECT, please visit www.durect.com and follow us on Twitter https://twitter.com/DURECTCorp.

The statements in this press release regarding the potential for larsucosterol (also known as DUR-928) to treat patients with AH and NASH, clinical trial enrollment and plans, plans to complete a commercial license for POSIMIR and for its commercial launch, the potential benefits of Fast Track Designation, the potential for the AHFIRM trial to support an NDA filing for larsucosterol in AH, and plans to develop larsucosterol in NASH are forward-looking statements involving risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, the risks that the AHFIRM trial takes longer to conduct than anticipated due to COVID-19 or other factors, the risk that ongoing and future clinical trials of larsucosterol do not confirm the results from earlier clinical or pre-clinical trials, or do not demonstrate the safety or efficacy or the life-saving potential of larsucosterol in a statistically significant manner, the risk that the AHFIRM trial, even if successful, may not be sufficient alone to support an NDA filing for larsucosterol in AH, the risk that Fast Track designation for larsucosterol in AH may not actually lead to faster FDA review or an approval, risks that biomarker data in earlier trials of larsucosterol may not predict clinical efficacy, risks that we may not enter a commercial license for POSIMIR on favorable terms, if at all, risks that a licensee may not commercialize POSIMIR successfully, if at all, and risks related to entering into new agreements or our ability to obtain capital to fund operations and expenses. Further information regarding these and other risks is included in DURECT's Form 10-K filed on March 5, 2021 and in our Form 10-Q for the quarter ended September 30, 2021 when filed with the Securities and Exchange Commission under the heading “Risk Factors.”

NOTE: POSIMIR® and SABER® are trademarks of DURECT Corporation. Other referenced trademarks belong to their respective owners. Larsucosterol (DUR-928) is an investigational drug candidate under development and has not been approved for commercialization by the U.S. Food and Drug Administration or other health authorities for any indication. Full prescribing information for POSIMIR, including its Boxed Warning, can be found at www.posimir.com.

	Three months ended September 30						Nine months ended September 30
	2021			2020			2021			2020
Collaborative research and development and other revenue	$	443		$	306		$	1,752		$	23,623
Product revenue, net		1,722			1,504			4,928			4,280
Total revenues		2,165			1,810			6,680			27,903
Operating expenses:
Cost of product revenues		364			339			1,075			988
Research and development		8,023			6,870			23,431			21,024
Selling, general and administrative		3,236			3,429			9,935			10,197
Total operating expenses		11,623			10,638			34,441			32,209
Loss from operations		(9,458	)		(8,828	)		(27,761	)		(4,306	)
Other income (expense):
Interest and other income		34			84			110			477
Interest expense		(553	)		(546	)		(1,606	)		(1,690	)
Net other expense		(519	)		(462	)		(1,496	)		(1,213	)
Loss from continuing operations		(9,977	)		(9,290	)		(29,257	)		(5,519	)
(Loss) income from discontinued operations		—			(42	)		—			577
Net loss	$	(9,977	)	$	(9,332	)	$	(29,257	)	$	(4,942	)
Net (loss) income per share
Basic and diluted
Loss from Continuing operations	$	(0.04	)	$	(0.05	)	$	(0.13	)	$	(0.03	)
(Loss) income from discontinued operations	$	—		$	(0.00	)	$	—		$	0.00
Net loss per common shares, basic and diluted	$	(0.04	)	$	(0.05	)	$	(0.13	)	$	(0.02	)

Weighted-average shares used in computing net income (loss) per share
Basic and diluted		227,499			201,877			224,191			198,176

Total comprehensive loss	$	(9,974	)	$	(9,385	)	$	(29,250	)	$	(4,921	)

	As of		As of
	September 30, 2021		December 31, 2020 (1)
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	55,412	$	21,312
Cash held in escrow		—		14,979
Short-term investments		25,384		19,421
Accounts receivable		946		940
Inventories		2,270		1,864
Prepaid expenses and other current assets		3,238		4,545
Total current assets		87,250		63,061
Property and equipment, net		343		251
Operating lease right-of-use assets		3,789		4,749
Goodwill		6,169		6,169
Long-term investments		—		1,000
Long-term restricted investments		150		150
Other long-term assets		261		261
Total assets	$	97,962	$	75,641

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,894	$	1,678
Accrued liabilities		5,741		5,801
Contract research liability		95		545
Term loan, current portion, net		—		884
Operatinglease liabilities, current portion		1,835		1,795
Total current liabilities		9,565		10,703
Deferred revenue, noncurrent portion		812		812
Operating lease liabilities, non-current portion		2,190		3,202
Term loan, noncurrent portion, net		20,496		19,936
Other long-term liabilities		872		873
Stockholders’ equity		64,027		40,115
Total liabilities and stockholders’ equity	$	97,962	$	75,641

SOURCE: DURECT Corporation

Corporate Contact		Media Contact
Mike Arenberg		Mónica Rouco Molina, PhD
DURECT		LifeSci Communications
Chief Financial Officer		+1-929-469-3850
+1-408-346-1052		mroucomolina@lifescicomms.com
mike.arenberg@durect.com