DURECT Corporation (DRRX)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
DURECT Corporation (DRRX) trades at $1.91 with AI Score 50/100 (Grade B). DURECT Corporation is a biopharmaceutical company focused on researching and developing innovative medicines. Market cap: $59.31M, Sector: Healthcare.
Price live · AI analysis from May 10, 2026Analyst Coverage for DRRX: DRRX does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates DRRX against Healthcare peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
DRRX: the 1 perspectives are evenly split.
How is this calculated? →DURECT Corporation (DRRX) Healthcare & Pipeline Overview
DURECT Corporation, established in 1998, is a biopharmaceutical company specializing in epigenetic regulator and pharmaceutical programs. Their product offerings include ALZET osmotic pumps for research, larsucosterol (DUR-928) in clinical trials for liver diseases, POSIMIR for post-surgical pain, and Methydur for ADHD, positioning them in the specialty drug market.
What Is the Investment Thesis for DRRX?
DURECT Corporation presents a speculative investment opportunity within the biopharmaceutical sector. The company's primary value driver is the potential success of larsucosterol (DUR-928) in treating alcohol-associated hepatitis (AH) and nonalcoholic steatohepatitis (NASH). Positive Phase IIb clinical trial results for AH could serve as a significant catalyst, potentially leading to partnerships or acquisition. The company's established ALZET osmotic pump business provides a steady revenue stream, supporting ongoing research and development. However, the company's small market capitalization of $59.31M and limited resources introduce significant risks, including potential clinical trial failures, regulatory hurdles, and the need for additional capital. The company's high profit margin of 66.1% and gross margin of 92.0% suggest efficient operations, but these metrics may fluctuate based on R&D expenses and product sales.
Based on FMP financials and quantitative analysis
DRRX Key Highlights
- Market capitalization of $59.31M, reflecting its small size and potential for high growth or volatility.
- P/E ratio of 73.5, indicating investors are paying a premium for its earnings, possibly due to future growth expectations.
- Profit margin of 66.1%, significantly higher than the industry average, suggesting efficient cost management or high-value products.
- Gross margin of 92.0%, demonstrating strong pricing power and low cost of goods sold, primarily driven by its ALZET product line.
- Beta of 0.93, indicating that the stock is slightly less volatile than the overall market.
Who Are DRRX's Competitors?
DRRX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| IMVT Immunovant, Inc. | $38.60 | -0.49% | $7.92B | 57 |
| AKRO Akero Therapeutics, Inc. | $54.65 | +0.00% | $4.50B | 46 |
| ALVO Alvotech | $3.51 | -2.77% | $1.19B | 69 |
| AERI Aerie Pharmaceuticals, Inc. | $15.25 | +0.00% | 68 | |
| KIN Kindred Biosciences, Inc. | $9.25 | +0.11% | 68 | |
| CNVCF BioHarvest Sciences Inc. | $6.30 | +0.00% | $109.16M | 66 |
| ALIM Alimera Sciences, Inc. | $5.54 | -0.18% | $301.29M | 60 |
| EGRX Eagle Pharmaceuticals, Inc. | $0.67 | +0.00% | $8.82M | 60 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are DRRX's Key Strengths?
- Proprietary drug delivery technology.
- Established ALZET product line.
- Promising clinical pipeline with larsucosterol (DUR-928).
- High gross and profit margins.
What Are DRRX's Weaknesses?
- Limited financial resources.
- Dependence on clinical trial outcomes.
- Small market capitalization.
- Limited commercial infrastructure.
What Could Drive DRRX Stock Higher?
- Phase IIb clinical trial results for larsucosterol (DUR-928) in alcohol-associated hepatitis (AH). Positive results could lead to partnerships or acquisition.
- Continued sales and marketing efforts for ALZET osmotic pumps.
- Potential for new strategic collaborations or licensing agreements.
What Are the Key Risks for DRRX?
- Weak fundamentals — a Piotroski F-Score of 2/9 flags soft profitability, leverage or efficiency.
- Rich valuation — a P/E of 73.5 runs well above the Healthcare sector’s ~23x, leaving little room for a miss.
- Insider selling — insiders were net sellers of roughly $1.1M recently.
- Clinical trial failures for larsucosterol (DUR-928).
- Regulatory hurdles and delays in drug approval.
- Competition from larger pharmaceutical companies with greater resources.
- Need for additional capital to fund research and development.
What Are the Growth Opportunities for DRRX?
- Expansion of Larsucosterol (DUR-928) Indications: DURECT has the opportunity to expand the clinical development of larsucosterol (DUR-928) beyond alcohol-associated hepatitis (AH) and nonalcoholic steatohepatitis (NASH). Given its mechanism of action as an epigenetic regulator, DUR-928 could potentially be investigated for other inflammatory and metabolic diseases. The market for inflammatory diseases is substantial, with a global market size estimated at hundreds of billions of dollars. This expansion could significantly increase the potential market for DUR-928 and drive long-term growth.
- Strategic Partnerships and Licensing Agreements: DURECT can pursue strategic partnerships and licensing agreements with larger pharmaceutical companies to accelerate the development and commercialization of its product candidates. Collaborating with established players can provide access to funding, expertise, and distribution networks. Licensing agreements for POSIMIR or Methydur could generate upfront payments, milestone payments, and royalties, providing non-dilutive funding for the company's pipeline. The timeline for securing such agreements is dependent on clinical trial results and market interest.
- Commercialization of POSIMIR: DURECT has the opportunity to expand the commercialization of POSIMIR, its post-surgical pain product. While currently available, increased marketing efforts and strategic partnerships with hospitals and surgical centers could drive sales growth. The market for post-surgical pain management is substantial, with a global market size in the billions of dollars. Effective commercialization of POSIMIR could provide a steady revenue stream and contribute to the company's overall financial stability.
- Expansion of ALZET Pump Business: DURECT can further expand its ALZET osmotic pump business by developing new pump models, expanding its distribution network, and targeting new research applications. The ALZET pumps are widely used in preclinical research, and the demand for controlled drug delivery systems is expected to grow. Expanding the product line and market reach could drive incremental revenue growth for this established business.
- Development of Novel Epigenetic Regulators: DURECT can leverage its expertise in epigenetic regulation to develop novel drug candidates targeting other diseases. Epigenetic mechanisms play a role in a wide range of diseases, including cancer, neurological disorders, and autoimmune diseases. By identifying and developing new epigenetic regulators, DURECT can expand its pipeline and create new opportunities for growth. This is a longer-term growth strategy, with a timeline of several years for drug discovery and development.
What Opportunities Does DRRX Have?
- Successful clinical development of larsucosterol (DUR-928).
- Strategic partnerships and licensing agreements.
- Expansion of ALZET pump applications.
- New drug development leveraging epigenetic expertise.
What Threats Does DRRX Face?
- Clinical trial failures.
- Regulatory hurdles.
- Competition from larger pharmaceutical companies.
- Need for additional capital.
What Are DRRX's Competitive Advantages?
- Proprietary drug delivery platforms and epigenetic regulator technologies.
- Established ALZET product line with a loyal customer base in research.
- Patent protection for key drug candidates and technologies.
What Does DRRX Do?
DURECT Corporation, founded in 1998 and headquartered in Cupertino, California, is a biopharmaceutical company dedicated to the research, development, and commercialization of innovative medicines. The company's initial focus was on developing and utilizing its proprietary drug delivery platforms to create pharmaceutical products with improved efficacy, safety, and patient compliance. Over the years, DURECT has evolved to focus on epigenetic regulator and pharmaceutical programs, expanding its pipeline and therapeutic areas of interest. DURECT's product portfolio includes the ALZET product line, comprising osmotic pumps and accessories widely used in preclinical research for controlled drug delivery in laboratory animals. The company is also developing larsucosterol (DUR-928), an orally bioavailable small molecule currently in Phase IIb clinical trials for alcohol-associated hepatitis (AH) and having completed Phase Ib trials for nonalcoholic steatohepatitis (NASH). Additionally, DURECT offers POSIMIR, a post-surgical pain product designed to deliver bupivacaine for up to three days in adults, and Methydur for the treatment of attention deficit hyperactivity disorder (ADHD). DURECT markets and sells its ALZET product line through a direct sales force in the United States and through a network of distributors internationally. The company has established strategic collaborations with organizations such as Virginia Commonwealth University Intellectual Property Foundation, Indivior UK Ltd., and Santen Pharmaceutical Co., Ltd., to further its research and development efforts and expand its market reach.
What Products and Services Does DRRX Offer?
- Researches and develops medicines based on epigenetic regulator programs.
- Offers ALZET osmotic pumps and accessories for research in laboratory animals.
- Develops larsucosterol (DUR-928) for alcohol-associated hepatitis and nonalcoholic steatohepatitis.
- Markets POSIMIR, a post-surgical pain product delivering bupivacaine.
- Develops Methydur for the treatment of attention deficit hyperactivity disorder (ADHD).
- Sells ALZET lines through direct sales in the US and distributors internationally.
How Does DRRX Make Money?
- Develops and out-licenses drug delivery technologies and pharmaceutical products.
- Generates revenue from sales of ALZET osmotic pumps and related accessories.
- Seeks strategic collaborations and partnerships for development and commercialization of drug candidates.
What Industry Does DRRX Operate In?
DURECT Corporation operates within the specialty pharmaceutical industry, a segment characterized by high research and development costs, lengthy regulatory approval processes, and intense competition. The market for liver disease treatments, particularly NASH and AH, is experiencing significant growth due to increasing prevalence and limited treatment options. DURECT's larsucosterol (DUR-928) targets this growing market. The company competes with larger pharmaceutical companies and smaller biotech firms developing novel therapies for liver diseases. Success in this industry requires strong clinical data, strategic partnerships, and effective commercialization strategies.
Who Are DRRX's Key Customers?
- Researchers in academia and pharmaceutical companies who use ALZET pumps.
- Patients requiring post-surgical pain management who use POSIMIR.
- Patients with ADHD who may use Methydur.
- Pharmaceutical companies partnering with DURECT for drug development.
Company Profile
DURECT Corporation operates in the Drug Manufacturers - Specialty & Generic industry within the Healthcare sector. It is headquartered in Cupertino, US. The company is led by CEO James E. Brown D.V.M.. DRRX has traded publicly since 2000.
F-Score 2/9Financial Health
DURECT Corporation's Piotroski F-Score is 2/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny.
ROE 13%Key Financial Metrics
Return on equity for DURECT Corporation stands at 13.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.5%, showing how much profit it generates from its asset base. DRRX trades at a trailing price-to-earnings ratio of 73.47, above the Healthcare sector average of ~23x. Its free cash flow yield is -18.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.98 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 1.4%, the inverse of the P/E and a quick read on earnings relative to price.
DRRX Valuation & Market Position
With a $59.31M market cap, DURECT Corporation sits in the micro-cap segment of the market. Relative to its peer group, DRRX's quantitative score of 50/100 is below the peer average of 62/100.
FY2026 estForward Outlook
Wall Street analysts project DURECT Corporation revenue of about $1.0M for fiscal 2026, with EPS near $-0.70.
Net sellingInsider Activity
The most recent 12 insider filings for DURECT Corporation break down as 12 sales and 0 purchases. On net that is roughly 324K shares disposed (about $1.1M), a signal worth weighing alongside the fundamentals.
DRRX Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2024
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future prospects, indicating that executives believe in the potential of their pipeline.
- Community sentiment has shown increasing optimism, particularly around upcoming product announcements that could drive growth.
- The company's focus on innovative drug delivery systems has garnered attention, positioning it well within a competitive market.
- Positive developments in clinical trials have raised expectations, leading to a more favorable perception among investors.
Bear Case
- Concerns over the company's ability to secure necessary funding for ongoing projects have surfaced, creating uncertainty in its financial stability.
- Recent market discussions highlight skepticism around the scalability of its products, which could limit long-term growth potential.
- The competitive landscape in the biotech sector remains fierce, with several players advancing rapidly, potentially overshadowing DURECT's innovations.
- Negative sentiment from some analysts regarding the timeline for product commercialization may dampen investor enthusiasm.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · April 2026
DRRX Latest News
No recent news available for DRRX.
DRRX Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for DRRX.
Price Targets
Wall Street price target analysis for DRRX.
DRRX MoonshotScore
What does this score mean?
The MoonshotScore rates DRRX's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: James E. Brown D.V.M.
Chief Executive Officer
James E. Brown D.V.M. has served as the Chief Executive Officer of DURECT Corporation. His background includes extensive experience in the animal health industry. He brings a wealth of knowledge in veterinary medicine and business management to his role at DURECT. His expertise is crucial in guiding the company's strategic direction and overseeing its research and development programs. He is responsible for managing the company's 21 employees.
Track Record: Under Dr. Brown's leadership, DURECT has focused on advancing its clinical pipeline, particularly larsucosterol (DUR-928). He has overseen the progression of DUR-928 through clinical trials for alcohol-associated hepatitis and nonalcoholic steatohepatitis. He has also focused on maintaining the profitability of the ALZET pump business.
Common Questions About DRRX (Healthcare)
What does DURECT Corporation do?
DURECT Corporation is a biopharmaceutical company that researches, develops, and commercializes pharmaceutical products. Its core business revolves around two main areas: drug delivery systems and epigenetic regulator programs. The company's ALZET osmotic pumps are used in preclinical research for controlled drug delivery. DURECT is also developing larsucosterol (DUR-928) for the treatment of liver diseases like alcohol-associated hepatitis and nonalcoholic steatohepatitis, as well as POSIMIR for post-surgical pain management, and Methydur for ADHD. The company aims to improve existing treatments and address unmet medical needs through innovative technologies.
What do analysts say about DRRX stock?
Analyst coverage of DURECT Corporation (DRRX) is limited due to its small market capitalization. Generally, analysts focus on the potential of larsucosterol (DUR-928) and its clinical trial outcomes as key drivers for valuation. Positive results in Phase IIb trials for alcohol-associated hepatitis (AH) could significantly increase the stock's value. However, the company's financial position and need for additional funding are also closely monitored. Investors should conduct their own due diligence and consider the risks associated with investing in a small-cap biopharmaceutical company.
What are the main risks for DRRX?
DURECT Corporation faces several key risks inherent to the biopharmaceutical industry. Clinical trial risk is significant, as the failure of larsucosterol (DUR-928) in Phase IIb or later trials would negatively impact the company's valuation. Regulatory risk is also present, as drug approval is not guaranteed and can be delayed. Financial risk is a concern, as the company may need to raise additional capital through equity or debt financing, which could dilute existing shareholders. Competition from larger pharmaceutical companies with greater resources is another ongoing risk.
What are the key factors to evaluate for DRRX?
DURECT Corporation (DRRX) holds an AI score of 50/100 (moderate). P/E: 73.5x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does DRRX data refresh on this page?
DRRX prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven DRRX's recent stock price performance?
DURECT Corporation (DRRX) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Proprietary drug delivery technology. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider DRRX overvalued or undervalued right now?
DURECT Corporation (DRRX) trades at 73.5x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying DRRX?
Before investing in DURECT Corporation (DRRX), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Investment decisions should be based on individual risk tolerance and financial situation.