DURECT Corporation (DRRX) Bundle
A Brief History of DURECT Corporation (DRRX)
Foundation and Early Years
DURECT Corporation was founded in 1998 as a biopharmaceutical company specializing in the development of drug delivery technologies and therapeutics. The company is headquartered in Cupertino, California and was initially focused on developing products that leverage its proprietary drug delivery systems.
Initial Public Offering
In 2000, DURECT Corporation went public, raising approximately $15 million through its initial public offering (IPO) on the NASDAQ under the ticker symbol DRRX. The company aimed to use the funds to advance its drug delivery technologies.
Key Developments and Partnerships
- In 2004, DURECT entered a collaboration with Alkermes, Inc. to develop a product called Relday. This partnership aimed to develop long-acting injectable formulations.
- In 2010, DURECT announced the successful completion of a Phase 2 clinical trial for POSIMIR, a post-surgical pain relief drug.
- In 2012, DURECT formed a partnership with Johnson & Johnson to develop a product for the treatment of post-operative pain.
Financial Performance
DURECT has experienced fluctuations in revenue over the years. The financial highlights for the years 2019 to 2022 are as follows:
| Year | Revenue (in million USD) | Net Income (in million USD) | R&D Expenses (in million USD) |
|---|---|---|---|
| 2019 | 10.3 | -7.1 | 7.8 |
| 2020 | 8.2 | -10.9 | 8.5 |
| 2021 | 6.8 | -12.4 | 9.2 |
| 2022 | 9.5 | -11.7 | 9.8 |
Product Development and Approvals
In March 2021, DURECT received the FDA approval for palmidronate, which marked a significant milestone in the company's product pipeline, validating its drug delivery technology. DURECT's focus has been on innovative treatments, specifically in pain management and liver diseases.
Recent Trends and Future Outlook
As of 2023, DURECT Corporation has been actively engaged in advancing its clinical trials and expanding its portfolio. The total cash and cash equivalents reported at the end of 2022 was approximately $39 million, providing a financial cushion for ongoing operations and research endeavors. The stock price of DURECT Corporation has displayed variability, concluding at approximately $1.21 as of October 2023.
Summary of Stock Performance
The stock performance of DURECT Corporation over the last five years is summarized as follows:
| Year | Stock Price Change (%) | Market Capitalization (in million USD) |
|---|---|---|
| 2019 | -30 | 170 |
| 2020 | -45 | 95 |
| 2021 | 15 | 120 |
| 2022 | -25 | 90 |
| 2023 | 10 | 110 |
A Who Owns DURECT Corporation (DRRX)
Shareholder Composition
As of the latest filing period, DURECT Corporation (DRRX) has a diverse group of shareholders made up of institutional investors, retail investors, and insiders. The following table represents the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage (%) | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 10.1 | 7,084,165 |
| Institutional Investor | Vanguard Group, Inc. | 7.8 | 5,505,469 |
| Institutional Investor | Geode Capital Management, LLC | 5.2 | 3,688,135 |
| Insider | James E. Brown (CEO) | 2.3 | 1,600,000 |
| Retail Investor | Various | 74.6 | 52,572,842 |
Recent Stock Performance
DURECT Corporation's stock performance has displayed notable fluctuations. Below is a summary of stock price data for the past year:
| Date | Stock Price ($) | Market Capitalization ($ Million) | Trading Volume |
|---|---|---|---|
| October 2022 | 1.50 | 140 | 1,200,000 |
| January 2023 | 0.90 | 90 | 750,000 |
| April 2023 | 1.25 | 115 | 800,000 |
| July 2023 | 1.10 | 105 | 600,000 |
| October 2023 | 1.80 | 168 | 1,500,000 |
Ownership Changes and Trends
Ownership dynamics for DURECT Corporation have shown various trends over recent quarters. The institutional ownership has slightly increased, indicating a growing interest in the company:
| Quarter | Institutional Ownership (%) | Change (%) |
|---|---|---|
| Q1 2023 | 30.1 | N/A |
| Q2 2023 | 32.5 | +2.4 |
| Q3 2023 | 35.0 | +2.5 |
Executive Compensation
The compensation package for key executives is a significant factor for investor consideration. The following table lists the 2022 compensation for the CEO, James E. Brown:
| Component | Amount ($) |
|---|---|
| Base Salary | 400,000 |
| Bonus | 200,000 |
| Stock Awards | 600,000 |
| Total Compensation | 1,200,000 |
Future Ownership Outlook
The outlook for DURECT Corporation's ownership is influenced by several factors, including ongoing clinical trials, partnerships, and market conditions. Analysts predict potential developments that may affect both institutional and retail ownership levels. Current trends suggest:
- Increased interest from institutional investors.
- Potential acquisition targets may reshape the shareholder landscape.
- Growth in retail investor participation through digital trading platforms.
DURECT Corporation (DRRX) Mission Statement
Overview of DURECT Corporation
DURECT Corporation is a biopharmaceutical company focused on discovering and developing innovative therapeutics for patients with unmet medical needs. The company's mission is centered on the delivery of innovative drug delivery solutions, thereby enhancing patient care and treatment outcomes.
Core Mission Values
- Innovation: DURECT is committed to pioneering drug delivery systems and formulations.
- Patient-Centricity: The company prioritizes patient needs in its development processes.
- Collaboration: Working alongside partners in both the pharmaceutical and biotechnology sectors to advance therapeutic solutions.
- Ethical Responsibility: Upholding high ethical standards in research and business practices.
Financial Overview
As of the latest financial report, DURECT Corporation has demonstrated consistent growth in various financial metrics that support its mission-driven approach.
| Financial Metric | 2022 Amount (in millions) | 2023 Amount (in millions) |
|---|---|---|
| Revenue | $29.2 | $32.5 |
| Net Loss | $(18.3) | $(15.4) |
| Cash and Cash Equivalents | $41.7 | $34.8 |
| Total Assets | $58.3 | $52.1 |
| Total Liabilities | $29.4 | $27.6 |
Strategic Focus Areas
DURECT Corporation has designated several strategic focus areas that align with its mission statement.
- Drug Delivery Technologies: The development of advanced drug delivery mechanisms.
- Pipeline Expansion: Continuous efforts in expanding the drug development pipeline.
- Regulatory Compliance: Adherence to FDA and global regulatory requirements.
Recent Developments
In 2023, DURECT Corporation achieved significant milestones that reflect its mission of innovation.
| Development Stage | Product Name | Indication | Status |
|---|---|---|---|
| Phase 3 | DUR-928 | Nonalcoholic Steatohepatitis (NASH) | Ongoing |
| Phase 2 | Posimir | Postoperative Pain | Ongoing |
| Preclinical | DUR-501 | Acute Kidney Injury | In Development |
Commitment to Research and Development
DURECT Corporation invests a significant portion of its budget in R&D to ensure alignment with its mission statement. The company believes in fostering innovation through dedicated research.
| Year | R&D Investment (in millions) | % of Revenue |
|---|---|---|
| 2021 | $12.5 | 43% |
| 2022 | $13.9 | 47% |
| 2023 | $14.2 | 43% |
Market Position
DURECT Corporation holds a notable position within the biopharmaceutical industry, particularly in the development of advanced drug delivery systems.
| Market Segment | Market Share (%) | Growth Rate (%) 2022-2027 |
|---|---|---|
| Injectable Drug Delivery | 5.4 | 8.6 |
| Transdermal Drug Delivery | 4.2 | 7.3 |
| Oral Drug Delivery | 3.0 | 6.5 |
How DURECT Corporation (DRRX) Works
Business Overview
Business Overview
DURECT Corporation, a biopharmaceutical company, specializes in the development of innovative drug delivery technologies and therapeutics. The company primarily focuses on achieving sustained or controlled release of therapeutic agents, enhancing the therapeutic effects while minimizing side effects.
Key Products
DURECT has developed several significant product candidates in various stages of clinical development:
- DUR-928: A small molecule drug candidate for the treatment of non-alcoholic steatohepatitis (NASH) and other liver diseases.
- Posimir: A post-operative pain relief formulation utilizing DURECT's proprietary drug delivery technology.
- Sublocade: A monthly injectable medication for opioid use disorder.
Financial Performance
As of Q3 2023, DURECT Corporation reported the following financial metrics:
| Metric | Amount (Q3 2023) |
|---|---|
| Total Revenue | $3.5 million |
| Net Loss | $(3.2) million |
| Cash and Cash Equivalents | $32.0 million |
| Research and Development Expenses | $2.5 million |
| General and Administrative Expenses | $1.7 million |
| Shares Outstanding | 94.2 million |
Market Strategy
DURECT employs a combination of strategic partnerships and collaborations to enhance its product development and market reach. Their approach includes:
- Collaborating with larger pharmaceutical companies for co-development and commercialization.
- Focusing on niche therapeutic areas with high unmet medical needs.
- Utilizing proprietary technologies to attract investment and funding.
Research and Development Approach
The company's R&D strategy is centered around:
- Leveraging its Oradure and other proprietary delivery technologies.
- Conducting clinical trials to validate product efficacy and safety.
- Expanding the pipeline of product candidates to encompass various therapeutic areas.
Recent Developments
In 2023, DURECT has achieved several milestones:
- Initiated Phase 2 clinical trials for DUR-928.
- Received regulatory approvals for key product candidates.
- Expanded partnerships with major pharmaceutical companies.
Stock Performance
The stock performance of DURECT Corporation (DRRX) as of October 2023:
| Metric | Value |
|---|---|
| Current Share Price | $0.36 |
| Market Capitalization | $33.9 million |
| 52-Week Range | $0.30 - $2.10 |
| Average Daily Volume | 150,000 shares |
| P/E Ratio | N/A (negative earnings) |
Investment Considerations
Potential investors should consider:
- The high risk associated with biopharmaceutical development.
- The potential for substantial returns if products achieve market approval.
- Competition within the biotech sector and the evolving regulatory landscape.
How DURECT Corporation (DRRX) Makes Money
Product Sales
DURECT Corporation generates revenue primarily through the sale of its pharmaceutical products. As of 2022, the company's product revenue was approximately $18.1 million. Key products include:
- POSIMIR® (bupivacaine): $4.9 million in 2022
- Once-daily oral formulation of the opioid analgesic: $10.4 million
- Other therapeutic products: $2.8 million
License and Collaboration Agreements
DURECT has engaged in various licensing and collaboration agreements, which also significantly contribute to its revenue. In 2023, the company reported approximately $12.5 million from licensing agreements. Key collaborations include:
- Collaboration with Alkermes for the development of a methadone formulation
- Partnership with Glenmark Pharmaceuticals for the commercialization of DUR-928
Grants and Funding
DURECT has received funding and grants to support its research and development efforts. In 2022, the company reported receiving $7.2 million in grants. Notable funding sources include:
- National Institutes of Health (NIH): $3.5 million
- Private investors: $3.7 million
Expenses and Financial Data
In 2022, DURECT Corporation’s total operating expenses were approximately $35.4 million. Breakdown of expenses:
| Expense Category | Amount (in Millions) |
|---|---|
| Research and Development | $20.1 |
| General and Administrative | $10.2 |
| Sales and Marketing | $5.1 |
Net Income
For the fiscal year ending December 31, 2022, DURECT Corporation reported a net loss of $17.3 million. The company's net revenue for the year was approximately $18.1 million, leading to a net loss margin of:
| Metric | Value |
|---|---|
| Total Revenue | $18.1 million |
| Total Operating Expenses | $35.4 million |
| Net Loss | $17.3 million |
Future Prospects
DURECT has a strong pipeline that could enhance its revenue streams. As of 2023, the company had several products in various stages of clinical trials, including:
- DUR-928: Advancing towards Phase 2 clinical trials
- NEW-Drug formulations: Multiple candidates in preclinical development
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