Durect Corporation (DRRX) is a specialty pharmaceutical company focused on the development of pharmaceutical systems based on its proprietary drug delivery platform technologies to treat chronic debilitating diseases and enable biotechnology products. These platform technologies include the SABER™ Delivery System (a patented and versatile depot injectable useful for proteins, peptides and small molecule delivery), the ORADUR® sustained release oral gel-cap technology (an oral sustained release technology with several potential abuse deterrent properties), the TRANSDUR® transdermal patch technology, the DURIN™ Biodegradable Implant (drug-loaded implant system) and the MICRODUR™ Biodegradable Microparticulates (microspheres injectable system). DURECT also partners with pharmaceutical and biotechnology companies to develop and commercialize proprietary and enhanced pharmaceutical products based on its technologies. DURECT has seven disclosed on-going development programs of which six are in collaboration with pharmaceutical partners.
Daily Dose Thoughts: Durect has been around forever but the company seems to be making great progress in perfecting their drug delivery technology. With top line revenues and a solid balkance sheet and several catalysts that can play out ahead. This is a cheap biotech with a few shots on goal in potentially large indications.
ThinkEquity LLC has initiated coverage of Durect Corp, giving it a "Buy" rating and a $3 price target.
The report states,
"While DRRX has had a bumpy road over the past few years in our view, we continue to see a compelling combination of large-pharma collaborations with an under valued pipeline that could provide potential upside surprise. DRRX’s lead product is Remoxy, a less-abusable Oxycontin partnered with Pfizer (PFE), which we believe could be potentially re-filed with the FDA by late 2013E. In 2H12, DRRX could file an NDA for the post-surgical pain injection Posidur, partnered with Hospira (HSP) and targeting 10M-20M US surgeries. Additionally, in ourview, DRRX has a deep pipeline of earlier pain compounds."
Read the full report below.
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