DURECT Corporation, an advanced biopharmaceutical company at the forefront of creating epigenetic therapies for severe and critical medical conditions like acute organ injury, has finalized the sale of its Alzet osmotic pump product line to Lafayette Instrument Company (LIC). LIC, part of Branford Castle Partners II, L.P., a private equity firm focusing on North America, acquired the line for $17.5 million, taking on specific assets and liabilities linked to Alzet.
Alongside this deal, DURECT has repaid its entire remaining balance under the term loan agreement with Oxford Finance LLC.
“As DURECT shifts focus towards developing larsucosterol for alcohol-associated hepatitis (AH), we concluded that the ALZET line no longer aligns with our strategic vision,” stated James E. Brown, D.V.M., President and CEO of DURECT. “This move enhances our financial standing and extends our operational runway until the first half of 2025. Settling the Oxford term loan enables us greater financial leeway as we aim to secure funding for our anticipated phase 3 clinical trial for larsucosterol in AH.”
Ben Mangrich, Lafayette Instrument Company CEO, remarked, “The addition of Alzet osmotic pumps significantly enriches our life sciences tools arsenal. We are eager to carry forward a tradition of top-tier products facilitating impactful research.”
Aquilo Partners, L.P. served as financial consultant, while Wilson, Sonsini, Goodrich & Rosati provided legal advice to DURECT.
The Alzet line, designed for research purposes in animals like mice and rats, features miniature, implantable osmotic pumps and accessories. These pumps are not cleared or intended for human use but are essential for delivering drugs, hormones, and agents consistently without frequent handling or dosing, operating from one day up to six weeks. In research, they aid in systemic administration when placed under the skin or within the body, and they can also connect to catheters for various targeted infusions. With over 22,000 scientific references affirming their utility, Alzet pumps play a crucial role in laboratory investigations.
DURECT is spearheading the development of epigenetic therapies aimed at rectifying abnormal DNA methylation, revolutionizing treatment approaches for acute organ injuries and other severe health challenges.