DURECT Corporation (NASDAQ: DRRX) said on Monday that it had sold its ALZET line of osmotic pumps to Lafayette Instrument Co in a deal valued at $17.5 million.
The company also said it had paid off all remaining obligations under the term loan agreement with Oxford Finance LLC.
“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,” James E. Brown, D.V.M., President and Chief Executive Officer, said in a press release.
“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.”
Stock Performance
The shares of DURECT Corporation (DRRX) closed 3.96% ($0.04) lower at $0.97 on Nasdaq on Monday, as they reversed a gain from the previous market session.
The company’s total market cap now stands at $30.111 million.
The shares of DURECT Corporation (DRRX) went down 82.95% in 2023, compared with a 43.42% gain for the benchmark index, Nasdaq Composite (IXIC).
The company’s shares have risen 64.41% so far this year.
Analyst stock price forecast and recommendation
According to TipRanks, at least 2 out of 3 surveyed investment analysts had rated DURECT Corp’s stock as “Buy”, while 1 – as “Hold”. The median price target on the stock stands at $6.75, which translates into a 595.88% upside compared to the closing price on Monday.
The high point of the analyst forecast range stands at $8.50.
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