- Webcast of Earnings Call Today,
May 4th at 4:30 p.m. ET
- Adding new clinical sites and patient
dosing progressing in the AHFIRM trial
CUPERTINO, Calif., May 4, 2022
/PRNewswire/ -- DURECT Corporation (Nasdaq: DRRX) today announced
financial results for the three months ended March 31, 2022 and provided a corporate
update.
"Progress continues in the larsucosterol (DUR-928) AHFIRM trial,
with more patients dosed in the first quarter of 2022 than in any
prior quarter, reflecting the opening of additional clinical trial
sites and our ongoing efforts to work with existing sites to
recruit more patients with severe alcohol-associated hepatitis (AH)
that meet our enrollment criteria," stated James E. Brown, D.V.M., President and CEO of
DURECT.
First Quarter and Recent Business Highlights:
- Continued progress in AHFIRM enrollment – DURECT has now
dosed the first patients in Australia, France and Belgium, with 57 AHFIRM study sites now open
at leading hospitals in the U.S., Australia, E.U. and U.K., a net increase of 6
sites in the two months since our last earnings call. At the pace
of enrollment achieved in the first quarter of 2022, we would
complete dosing the last patient in the AHFIRM trial in mid-2023;
we expect the pace of enrollment should improve through our
clinical site expansion, clinical trial engagement activities and
the potential lessening of the impact of COVID on the hospitals
participating in AHFIRM.
- Engaging thought leaders and increasing awareness of AH
– DURECT's medical affairs team has been substantially increasing
our AH market outreach and education efforts to amplify
larsucosterol awareness and facilitate AHFIRM enrollment efforts.
We have recently hosted the first of multiple regional AHFIRM study
update meetings with our investigators and study site coordinators,
sponsored and exhibited at three liver-focused congresses in
person, and retained a medical communications agency to broaden
awareness of AH, the AHFIRM trial and larsucosterol.
- Approaching U.S. launch of POSIMIR by our licensee –
DURECT signed an exclusive U.S. licensing agreement for
POSIMIR® with Innocoll Pharmaceuticals in December 2021. Under the agreement, DURECT will
earn low to mid double-digit royalties from net sales of POSIMIR
and is eligible to receive up to $136
million in upfront and milestone payments, including the
$4 million upfront license fee
received in January 2022, and a
$2 million milestone payment upon the
first commercial sale of POSIMIR, which is anticipated in Q2
2022.
Financial highlights for Q1 2022:
- Total revenues were $1.9 million
and net loss was $10.8 million for
the three months ended March 31, 2022
compared to total revenues of $2.2
million and net loss of $10.1
million for the three months ended March 31, 2021.
- At March 31, 2022, cash and
investments were $64.4 million,
compared to cash and investments of $70.0
million at December 31, 2021.
Debt at March 31, 2022 was
$20.8 million, compared to
$20.6 million at December 31, 2021.
Earnings Conference Call
We will
host a conference call today at 4:30 p.m.
Eastern Time/1:30 p.m. Pacific
Time to discuss first quarter 2022 results and provide a
corporate update:
Wednesday, May 4 @ 4:30pm Eastern
Time / 1:30 p.m. Pacific Time
|
Toll Free:
|
1-800-285-6670
|
International:
|
713-481-1320
|
Conference ID:
|
13729654
|
Webcast:
|
https://event.choruscall.com/mediaframe/webcast.html?webcastid=6RVdxB8I
|
A live audio webcast of the presentation will be also available
by accessing DURECT's homepage at www.durect.com and clicking
"Investors." If you are unable to participate during the live
webcast, the call will be archived on DURECT's website under "Event
Calendar" in the "Investors" section.
About the AHFIRM Trial
Enrollment is
ongoing in our Phase 2b randomized,
double-blind, placebo-controlled, international, multi-center study
in subjects with severe acute alcohol-associated hepatitis
(AH) to evaluate saFety and effIcacy of
laRsucosterol (DUR-928) treatMent (AHFIRM). The study
is comprised of three arms targeting enrollment of 300 total
patients, with approximately 100 patients in each arm: (1) Placebo
plus standard of care (SOC) which may include the use of
methylprednisolone, a corticosteroid, at the discretion of the
treating physician; (2) larsucosterol (30 mg); and (3)
larsucosterol (90 mg). All patients in the trial receive
supportive care. The primary outcome measure is 90-Day survival
rate for patients treated with larsucosterol compared to those
treated with placebo plus SOC. The Company is targeting more
than 60 clinical trial sites across the U.S., EU, U.K., and
Australia. Reflecting the
life-threatening nature of AH and the lack of therapeutic options,
the U.S. Food and Drug Administration (FDA) has granted
larsucosterol Fast Track Designation for the treatment of AH. We
believe demonstration of a robust survival benefit in the AHFIRM
trial would support an NDA filing. For more information, refer to
ClinicalTrials.gov Identifier: NCT04563026.
About Alcohol-associated Hepatitis (AH)
AH
is a life-threatening acute alcohol-associated liver disease (ALD)
often caused by chronic heavy alcohol use and a recent period of
increased alcohol consumption (i.e., a binge). It is characterized
by severe inflammation and destruction of liver tissue (i.e.,
necrosis), potentially leading to life-threatening complications
including liver failure, acute renal injury and multi-organ
failure. There are no FDA approved therapies for AH and an analysis
of 77 studies published between 1971 and 2016, which included data
from a total of 8,184 patients, showed the overall mortality from
AH was 26% at 28 days, 29% at 90 days and 44% at 180 days. A
subsequent global study published in December 2021, which included 85 tertiary centers
in 11 countries across 3 continents, prospectively enrolled 2,581
AH patients with a median MELD score of 23.5, reported mortality at
28 and 90 days of 20% and 31% respectively. Stopping alcohol
consumption is not sufficient for recovery in many moderate and
severe patients and the use of treatments to reduce liver
inflammation, such as corticosteroids, are limited by
contraindications and have been shown to provide no survival
benefit at 90 days or 1 year. While liver transplantation is
becoming more common for alcoholic liver disease patients,
including AH patients, the procedure involves a long waiting
period, a burdensome selection process, and costs more than
$875,000 on average.
About Larsucosterol (DUR-928)
Larsucosterol is an
endogenous sulfated oxysterol and an epigenetic regulator.
Epigenetic regulators are compounds that regulate patterns of gene
expression without modifying the DNA sequence. DNA
hypermethylation, an example of epigenetic dysregulation, results
in transcriptomic reprogramming and cellular dysfunction, and has
been found to be associated with many acute (e.g., AH) or chronic
diseases (e.g., NASH). As an inhibitor of DNA methyltransferases
(DNMT1, DNMT3a and 3b), larsucosterol
inhibits DNA methylation, which subsequently regulates expression
of genes that are involved in cell signaling pathways associated
with stress responses, cell death and survival, and lipid
biosynthesis. This may ultimately lead to improved cell survival,
reduced inflammation, and decreased lipotoxicity. As an epigenetic
regulator, the proposed mechanism of action provides further
scientific rationale for developing larsucosterol for the treatment
of acute organ injury and certain chronic diseases.
About DURECT Corporation
DURECT is a
biopharmaceutical company committed to transforming the treatment
of acute organ injury and chronic liver diseases by advancing novel
and potentially lifesaving therapies based on its endogenous
epigenetic regulator program. Larsucosterol (also known as
DUR-928), DURECT's lead drug candidate, binds to and inhibits the
activity of DNA methyltransferases (DNMTs), epigenetic enzymes
which are elevated and associated with hypermethylation found in
alcohol-associated hepatitis (AH) patients. Larsucosterol is in
clinical development for the potential treatment of AH, for which
FDA has granted a Fast Track Designation; non-alcoholic
steatohepatitis (NASH) is also being explored. In addition,
POSIMIR® (bupivacaine solution) for infiltration use, a
non-opioid analgesic utilizing the innovative SABER®
platform technology, is FDA-approved and has been exclusively
licensed to Innocoll Pharmaceuticals for development and
commercialization in the United
States. For more information about DURECT, please
visit www.durect.com and follow us on
Twitter https://twitter.com/DURECTCorp.
DURECT Forward-Looking Statement
The
statements in this press release regarding plans to complete
enrollment of the AHFIRM trial in mid-2023, plans to increase the
number of clinical trial sites in the AHFIRM trial, the expected
commercial launch of POSIMIR by Innocoll and potential future
payments we may receive from Innocoll, and the potential to develop
larsucosterol for NASH or other indications are forward-looking
statements involving risks and uncertainties that can cause actual
results to differ materially from those in such forward-looking
statements. Potential risks and uncertainties include, but are not
limited to, the risks that the AHFIRM trial takes longer to conduct
than anticipated due to COVID-19 or other factors, the risk that
ongoing and future clinical trials of larsucosterol do not
confirm the results from earlier clinical or pre-clinical trials,
or do not demonstrate the safety or efficacy or the life-saving
potential of larsucosterol in a statistically significant
manner, risks that Innocoll may not commercialize POSIMIR
successfully, if at all, and risks related to our ability to obtain
capital to fund operations and expenses. Further information
regarding these and other risks is included in DURECT's Form 10-K
for the year ended December 31, 2021
and Form 10-Q for the quarter ended March
31, 2022 when filed with the Securities and Exchange
Commission under the heading "Risk Factors." These reports
are available on our website www.durect.com under the "Investors"
tab.
NOTE: POSIMIR® is a trademark of Innocoll
Pharmaceuticals, Ltd. in the U.S. and a trademark of DURECT
Corporation outside of the U.S. SABER® is a trademark
of DURECT Corporation. Other referenced trademarks belong
to their respective owners. Larsucosterol (DUR-928) is an
investigational drug candidate under development and has not been
approved for commercialization by the U.S. Food and Drug
Administration or other health authorities for any
indication.
DURECT
CORPORATION
|
CONDENSED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
March 31,
2022
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Collaborative research
and development and other revenue
|
$
495
|
|
$
574
|
|
Product revenue,
net
|
1,420
|
|
1,638
|
|
|
Total
revenues
|
1,915
|
|
2,212
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Cost of product
revenues
|
335
|
|
352
|
|
|
Research and
development
|
8,211
|
|
7,975
|
|
|
Selling, general and
administrative
|
3,735
|
|
3,531
|
|
Total operating
expenses
|
12,281
|
|
11,858
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(10,366)
|
|
(9,646)
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest and other
income
|
54
|
|
37
|
|
|
Interest and other
expense
|
(530)
|
|
(525)
|
|
Net other
expense
|
(476)
|
|
(488)
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(10,842)
|
|
$
(10,134)
|
|
|
|
|
|
|
|
|
Net change in
unrealized loss on available-for-sale securities, net of
reclassification adjustments and taxes
|
(19)
|
|
(9)
|
|
|
|
|
|
|
|
|
Total comprehensive
loss
|
$
(10,861)
|
|
$
(10,143)
|
|
|
|
|
|
|
|
|
Net loss per
share
|
|
|
|
|
|
Basic
|
|
$ (0.05)
|
|
$
(0.05)
|
|
|
Diluted
|
|
$ (0.05)
|
|
$
(0.05)
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in computing net loss per share
|
|
|
|
|
|
Basic
|
|
227,688
|
|
217,537
|
|
|
Diluted
|
|
227,688
|
|
217,537
|
|
|
|
DURECT
CORPORATION
|
|
|
|
CONDENSED BALANCE
SHEETS
|
|
|
|
(in
thousands)
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
|
|
March 31,
2022
|
|
December 31,
2021
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
49,440
|
|
$
49,844
|
|
Short-term investments
|
|
14,761
|
|
19,966
|
|
Accounts receivable, net
|
|
960
|
|
6,477
|
|
Inventories, net
|
|
2,076
|
|
1,870
|
|
Prepaid expenses and other current assets
|
|
3,398
|
|
3,580
|
|
Total current
assets
|
|
70,635
|
|
81,737
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
226
|
|
227
|
|
Operating lease
right-of-use assets
|
|
3,090
|
|
3,446
|
|
Goodwill
|
|
6,169
|
|
6,169
|
|
Long-term restricted
Investments
|
|
150
|
|
150
|
|
Other long-term
assets
|
|
261
|
|
261
|
|
Total assets
|
|
$
80,531
|
|
$
91,990
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
2,269
|
|
$
1,311
|
|
Accrued liabilities
|
|
4,892
|
|
6,799
|
|
Deferred revenue, current portion
|
|
-
|
|
98
|
|
Operating lease liabilities, current portion
|
|
1,862
|
|
1,848
|
|
Total current
liabilities
|
|
9,023
|
|
10,056
|
|
|
|
|
|
|
|
Deferred revenue,
noncurrent portion
|
|
812
|
|
812
|
|
Operating lease
liabilities, noncurrent portion
|
|
1,442
|
|
1,824
|
|
Term loan, noncurrent
portion, net
|
|
20,765
|
|
20,632
|
|
Other long-term
liabilities
|
|
882
|
|
884
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
47,607
|
|
57,782
|
|
Total liabilities and
stockholders' equity
|
|
$
80,531
|
|
$
91,990
|
|
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SOURCE DURECT Corporation