Durect initiated with an Outperform at Northland

Northland initiated coverage of Durect with an Outperform rating and $12 price target. The firm is “optimistic” that topline data from the Durect’s Phase 2b AHFIRM trial anticipated in Q4 will be positive and support larsucosterol as a breakthrough therapy for treating alcoholic hepatitis, or AH, the analyst tells investors. With no FDA-approved therapies, larsucosterol addresses “an urgent unmet medical need” with peak sales potential exceeding $1B, the analyst says.