Durect downgraded to Hold from Buy at JonesResearch

JonesResearch analyst Sean Kim downgraded Durect to Hold from Buy without a price target. The analyst cites the “disappointing” topline results from the company’s Phase 2b AHFIRM trial of lead asset larsucosterol for the treatment of severe alcohol-associated hepatitis for the downgrade. While the firm concurs with management on the scientific rationale to forge ahead with potential Phase 3 development of larsucosterol and its potential to meaningfully improve survival in AH, it anticipates significant challenges along the company’s proposed path forward and sees limited near-term opportunities for upside.