The following is a summary of the DURECT Corporation (DRRX) Q1 2024 Earnings Call Transcript:

Financial Performance:

• DURECT Corporation reported a decline in revenue from $2.1 million in 2023 to $1.8 million in Q1 2024 due to lower revenues from feasibility agreements and product sales.

• R&D expenses saw a significant decrease from $8.6 million in the previous year to $4.1 million, as a result of lower clinical trial-related expenses and employee costs.

• The company also saw a decrease in SG&A expenses from $4.1 million in the previous year to $3.1 million, primarily due to reductions in market research and patent expenses, and lower employee costs.

• There was a reduction in cash and investments from $29.8 million at the end of 2023 to $21.6 million, however existing cash reserves are projected to fund operations till the end of 2024.

Business Progress:

• DURECT Corporation is set to initiate a Phase III clinical trial for larsucosterol in alcohol-associated hepatitis (AH) following positive data from their Phase IIb trial and favorable feedback from the FDA.

• Promising results could lead to a New Drug Application (NDA) filing with the FDA.

• Updates from the AHFIRM Phase IIb trial will be presented at the EASL conference and additional data analyses along with updates on the Phase III trial will be provided within the year.

• If the Phase III trial is successful, larsucosterol may emerge as the first FDA-approved treatment for AH thereby providing a solution to a market need with substantial impact and implications.

More details: Durect IR

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