The following is a summary of the DURECT Corporation (DRRX) Q2 2024 Earnings Call Transcript:

Financial Performance:

• DURECT reported Q2 2024 revenues of $2.2 million, compared to $2.1 million in the same quarter last year.

• Research and Development expenses decreased to $2.2 million in Q2 2024 from $7.9 million in Q2 2023, reflecting lower clinical trial-related and employee costs.

• SG&A expenses were reduced to $3.0 million from $3.8 million due to cost-management measures.

• Current cash and investment reserves stand at $15.8 million, sufficient to fund operations through the end of 2024.

Business Progress:

• DURECT has made significant advances with larsucosterol, moving towards a confirmatory Phase III clinical trial for alcohol-associated hepatitis (AH).

• The FDA has engaged positively with the proposed clinical trial, confirming a single pivotal trial sufficiency for an NDA filing.

• Larsucosterol received Breakthrough Therapy designation, enhancing interaction with the FDA.

Opportunities:

• Larsucosterol, if successful in Phase III trials, could become the first FDA-approved treatment for AH, addressing an unmet medical need.

• The drug's potential market in AH hospitalizations could translate into substantial cost savings for the healthcare system in the U.S.

Risks:

• The expected time line for Phase III trial initiation and completion carries uncertainties, requiring confirmed funding. Gradual progress is anticipated as detailed information and FDA confirmations are pending.

More details: Durect IR

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