The following is a summary of the DURECT Corporation (DRRX) Q4 2023 Earnings Call Transcript:

Financial Performance:

• DURECT reported total revenues of $8.5 million in 2023, significantly lower than the $19.3 million in 2022 primarily due to the absence of the $10 million in milestone payments earned in the previous year.

• Q4 2023 revenues were $2.7 million, slightly lower than Q4 2022's $3.3 million.

• The company's R&D expenses declined from $36.9 million in 2022 to $29.4 million in 2023 due to reduced costs related to clinical trials, contract manufacturing, and employee-related expenses.

• SG&A expenses also decreased from $15.9 million in 2022 to $14.4 million in 2023 owing to lower patent and employee expenses.

• By the end of 2023, DURECT held $29.8 million in cash and investments, enough to fund operations until the end of 2024 as per the company, despite a cash burn in 2023 of $38.1 million excluding net proceeds from financings.

Business Progress:

• DURECT had positive results from its AHFIRM Phase 2b clinical trial for its drug candidate larsucosterol, aimed at treating alcohol-associated hepatitis (AH). Larsucosterol showed a lower mortality rate at 90 days compared to the placebo, with fewer adverse events recorded.

• The company is now coordinating with the FDA to design a Phase 3 trial that can serve as the basis for an NDA filing, with updates expected in Q2.

• If larsucosterol gains approval, it could be the first FDA-approved treatment for AH, a currently untreated condition presenting a multi-billion dollar market opportunity in the United States alone.

More details: Durect IR

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