In Wednesday’s after-market session, Durect Corp. (DRRX) stock rebounded to gain 7.00%. Hence, it recovered nearly all of its day’s loss, as the stock lost 7.71% in the regular trading session. No news from the company is responsible for the stock’s movement into the green on Wednesday.
During regular trading, DRRX stock fluctuated between $0.8200 and $0.7568 at 654.83K shares. The stock closed the session with a loss of $0.0632 at $0.7568 on Wednesday. Following the loss, the stock soon rebounded in the after-hours to gain $0.05 at $0.8098.
Founded in 1998, the biopharmaceutical company has a market capitalization of $186.55 million. Currently, the company has 227.51 million shares outstanding in the market.
DRRX and Innocoll Licensing Agreement
On December 22, the company announced entering into a licensing agreement with Innocoll Biotherapeutics PLC for POMSIMIR®. As per the agreement, DRRX has granted exclusive development and commercialization rights for POSIMIR to Innocoll in the U.S. Furthermore, Innocoll Biotherapeutics PLC which is a portfolio business of Gurnet Point Capital is a specialty pharmaceutical company.
POSIMIR® for infiltration use is post-surgical local analgesia following arthroscopic subacromial decompression surgery. Administered into the subacromial space, it produces post-surgical analgesia for up to 72 hours.
Terms of the Agreement
According to the terms of the agreement between DRRX and Innocoll:
- Innocoll has exclusive development and commercialization rights to POSIMIR in the U.S.
- Innocoll also has the right for additional development of POSIMIR for the expansion of approved indications.
- The contract manufacturing supply agreement for POSIMIR has been granted to Innocoll.
- Innocoll will pay $6 million near-term to DRRX, this includes a $4 million license fee and a $2 million payment upon the first commercial sale.
- The commercial, regulatory, intellectual property milestone payments are expected to be potentially $130 million.
- DRRX will also receive tiered, low to mid-double-digit royalties on the U.S. net product sales.
In addition, all commercial rights to POSIMIR throughout the rest of the world remain with Durect.
Financial Analysis
On November 02, 2021, the company announced its financial results for the third quarter of 2021, which ended on September 30.
In the third quarter of 2021, DRRX had revenues of $2.2 million against $1.8 million in the year-ago period.
Moreover, the net loss for the third quarter of 2021 was $10.0 million, against $9.3 million in Q3 of 2020.
The company ended the quarter with cash and investments of $80.9 million.
