Durect (DRRX) stock underwent a massive rally on Tuesday after the biopharmaceutical company announced an acquisition agreement with global diversified pharmaceutical company Bausch Health (BCH). Under the terms of the agreement, Bausch Health will make a $1.75-per-share tender offer for DRRX shares. This represents a 217% premium to the stock’s prior closing price.
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Bausch Health’s acquisition of Durect has a price tag of $63 million. However, there are also potential milestone payments of up to $350 million. The deal requires the majority of DRRX stock to be tendered in the offer and is expected to close in the third quarter of 2025. If the deal goes through, Bausch Health will acquire any shares not tendered in the offer for the same $1.75 price.
Durect Stock Movement Today
Durect stock was up 268.19% in pre-market trading on Tuesday, following a 2.59% dip yesterday. The shares were also down 26.31% year-to-date and 66.5% year-over-year. Today’s news came with heavy trading, as some 14 million shares changed hands, compared to a three-month daily average of about 53,000 units.
Is Durect Stock a Buy, Sell, or Hold?
Turning to Wall Street, only one analyst has covered Durect in the past three months. Northland Securities’ Carl Byrnes has a Buy rating and $5 price target for DRRX, representing a potential 804.65% upside for the shares.
