DRRX Earnings Prediction
The chart below shows how DRRX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DRRX sees a +36.73% change in stock price 10 days leading up to the earnings, and a +8.84% change 10 days following the report. On the earnings day itself, the stock moves by +0.81%. This data can give you a slight idea of what to expect for the next quarter's release.
DRRX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.93M
10.49%
-11.24%
Gross Margin
73.38%
-10.63%
-12.22%
Operating Margin
-205.86%
-62.43%
31.30%
Net Margin
-222.37%
28.63%
30.48%
EPS
-0.14
-27.27%
16.67%
No Data Available
DRRX Earnings Analysis
Durect Corp Corporation (DRRX.O) Earnings Conference Call
Positive
Quarterly Revenue Increase: Total revenues in the third quarter were $1.9 million compared to $1.7 million in 2023, indicating a positive growth trajectory.
R&D Expense Reduction: R&D expense was $2.2 million in the third quarter of 2024 compared to $7.2 million for the prior year, reflecting significant cost management and efficiency improvements.
SG&A Expense Reduction: SG&A expenses were $3.2 million in the third quarter of 2024 compared to $3.8 million for the prior year, showcasing effective cost control measures.
Strong Liquidity Position: As of September 30, 2024, the company had cash and investments of $10.5 million, with cash utilization in the third quarter being $5.3 million, indicating a strong liquidity position.
Larsucosterol Phase 3 Trial: The Phase 3 trial for larsucosterol is designed as a randomized, double-blind, placebo-controlled, multi-center study, which is a positive step towards potential FDA approval.
Negative
Quarterly Revenue Increase: Total revenues in the third quarter were $1.9 million compared to $1.7 million in 2023, indicating a slight increase but not sufficient to offset declines in other areas.
R&D Expense Decrease: R&D expense was $2.2 million in the third quarter of 2024 compared to $7.2 million for the prior year, reflecting a significant decrease due to lower clinical trial-related expenses and lower employee-related costs.
SG&A Expense Reduction: SG&A expenses were $3.2 million in the third quarter of '24 compared to $3.8 million for the prior year, showing a decrease primarily due to lower employee, professional services, and legal expenses, which may indicate cost-cutting measures in response to financial pressures.
Cash Utilization Concerns: As of September 30, 2024, cash and investments were $10.5 million, with cash utilization in the third quarter being $5.3 million, raising concerns about liquidity and operational sustainability going forward.
Licensing Agreement Status: Innocoll has not notified us that they are terminating the licensing agreement related to POSIMIR, which could impact future revenue streams and strategic partnerships.
DRRX FAQs
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DRRX Earning Call Sentiment
DURECT Corporation (DRRX) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
DRRX.O
-0.13%Positive
The earnings call reveals several concerns: regulatory and financial risks, significant cash burn with limited funds, and logistical challenges in trial management. Although there's a potential blockbuster opportunity for larsucosterol, the lack of immediate financial impact from the POSIMIR agreement and competitive pressures add uncertainty. Additionally, management's unclear responses in the Q&A section and the need for substantial funding for Phase 3 trials are negative factors. Despite a slight revenue increase, the overall sentiment is negative due to these risks and uncertainties.
