07:38 AM EDT, 07/29/2025 (MT Newswires) -- Bausch Health ( BHC ) on Tuesday said it is acquiring Durect, a Nasdaq-listed company, for US$63 million in an all-cash transaction.

Bausch will pay Durect shareholders US$1.75 per share and will also pay up to US$350 million if certain sales targets are achieved.

Durect is developing a therapeutic molecule, larsucosterol, which has shown promising results for the treatment of alcoholic hepatitis (AH) in Phase 2 trials. Bausch Health ( BHC ) will support the clinical development and potential commercialization of larsucosterol, a statement said.

"There is a significant unmet need in the treatment of patients with AH given the high mortality rate and that there are no currently approved treatments. We are very excited to add larsucosterol, an asset which has FDA Breakthrough Therapy Designation, to our pipeline, particularly as it builds on our existing expertise within the hepatology space," said Jonathan Sadesh, chief medical officer at Bausch. "It is complementary to our ongoing Phase 3 program of soluble solid dispersion of rifaximin (rifaximin SSD) being studied in cirrhotic patients globally."

A registrational Phase 3 program to evaluate the safety and efficacy of larsucosterol for the treatment of patients with severe AH is being planned, with a 90-day survival period, the primary endpoint.

Bausch Health ( BHC ) is up US$0.16, to US$7.05 in U.S. pre-market trading.