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Cash Stream from Licensing Deal to Help Biopharma Advance Lead Drug
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A Laidlaw & Co. report discussed this firm's revenue and near-term, clinical catalysts.

In a July 30 research note, analyst Francois Brisebois with Laidlaw & Co. reported that DURECT Corp. (DRRX:NASDAQ) is due for a $5 million payment from Indivior because the FDA recently approved Indivior's drug, Perseris. Perseris is a risperidone-containing, long-acting drug, injected once monthly, for the treatment of schizophrenia in adults.

Brisebois explained that this milestone payment is part of the 2017 agreement between the two companies, in which DURECT licensed some of its intellectual property, including patent rights, to Indivior in exchange for compensation. Along with the payment on FDA approval, DURECT also will receive, quarterly, a percentage of revenue from net Perseris sales in the U.S.

"We see this news as positive," wrote Brisebois, adding that DURECT's balance sheet is benefitting from the company's relationship with Indivior. DURECT can use that cash stream to continue advancing DUR-928, "which we continue to view as the main reason to own DURECT."

With respect to its DUR-928 platform, "encouraging" news is that the biopharmaceutical firm remains on schedule to deliver in H2/18 interim data from its two DUR-928 Phase 2 studies, one for the treatment of primary sclerosing cholangitis and the other for alcoholic hepatitis, Brisebois noted. Additionally, in Q3/18, DURECT is slated to launch a third Phase 2 trial, this one in psoriasis.

Laidlaw maintains its Buy rating and its $2.50 per share price target on DURECT Corp., whose stock is trading today at around $1.47 per share.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a billboard sponsor of Streetwise Reports: DURECT Corp. Click here for important disclosures about sponsor fees.
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Disclosures from Laidlaw & Co., DURECT Corp., July 30, 2018

ANALYST CERTIFICATION The analyst responsible for the content of this report hereby certifies that the views expressed regarding the company or companies and their securities accurately represent his personal views and that no direct or indirect compensation is to be received by the analyst for any specific recommendation or views contained in this report. Neither the author of this report nor any member of his immediate family or household maintains a position in the securities mentioned in this report.

Laidlaw & Co (UK) Ltd. has not provided any investment banking services for the company (ies) mentioned in this report over the last 12 months.

As of the date of this report, neither the author of this report nor any member of his immediate family or household maintains an ownership position in the securities of the company (ies) mentioned in this report.

Associated persons of Laidlaw & Co (UK), Ltd not involved in the preparation of this report may have investments in securities/instruments or derivatives of securities/instruments of companies mentioned herein and may trade them in ways different from those discussed in this report. While Laidlaw & Co (UK), Ltd., prohibits analysts from receiving any compensation. Bonus or incentive based on specific recommendations for, or view of, a particular company, investors should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of interest.

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