DURECT Corporation (NASDAQ:DRRX) Higher on Sandoz Deal and Q1 2017 Results

DURECT Corporation (NASDAQ:DRRX)

DURECT Corporation (NASDAQ:DRRX) shares are up over 10% after the developer of drug delivery systems posted their Q1, 2017 earnings. DRRX ended trading yesterday at $1.10, gapped up to open the session at $1.12 and hit an inter-day high of $1.29. Volumes supporting the gains have been strong. The 30-day, daily average volume is listed at 696,530 but before 1 PM EST over 3 million shares have traded hands.

DURECT Corporation (NASDAQ:DRRX), founded in 1998, develops drug delivery systems that enhance the physical, pharmacokinetic, and pharmacodynamic properties of the active agents. They have also entered the new field of molecular pharmacology and have developed a family of endogenous molecules that have exhibited potentially promising results.

Yesterday DURECT Corporation (NASDAQ:DRRX) announced a collaborative agreement with Sandoz AG, a division of Novartis, for the U.S.A. for Posimer. DURECT will continue to have responsibilities related to Posimer’s Phase 3 trial which compares it to bupivacaine in patients that have had a gall bladder removed through a laparoscopic procedure. Posimer has been U.S. FDA approved and Sandoz may make up to $43 million in development and regulatory milestone payments. Additionally, there is the potential for an additional $230 million in sales-based milestone payments. Analysts have generally given the agreement a nod of approval.

Today DURECT Corporation (NASDAQ:DRRX) released Q1, 2017 financial earnings. For Q1 2017 the company posted revenues of $4.57 million compared to $3.61 million for Q1 2016. There was a net loss of (-$8.11) million which is wider than the (-$7.85) million loss for the same quarter last year. DURECT Corporation (NASDAQ:DRRX) EPS represented the same loss amount this quarter as the same quarter last year – (-$0.06) per share.

Two firms follow DURECT Corporation (NASDAQ:DRRX). One rates DRRX shares as a “Strong Buy” while the other rates them a “Hold”. Their consensus price target is $3.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Author: Marcus Anderson

Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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