DURECT CORPORATION Reports Earnings for FY2023 Q3 on November 13, 2023
November 21, 2023
🌥️Earnings Overview
On November 13th 2023, DURECT CORPORATION ($NASDAQ:DRRX) reported its financial results for the third quarter of FY2023 ending on September 30th 2023. Total revenue for this quarter was USD 1.7 million, which was a decrease of 85.5% compared to the same period in the previous year. Net income for the quarter decreased to USD -3.0 million, from -2.5 million reported in the same quarter of the prior year.
Stock Price
On Monday, November 13, 2023, DURECT CORPORATION reported its earnings for the third quarter of fiscal year 2023. The company opened its stock at $0.5 and closed at the same price, representing a 0.9% decrease from its prior closing price of $0.5. This news was met with mixed reactions from investors, as some were optimistic about the company’s future prospects while others remained cautious given the current market conditions. The company’s effective execution of cost-cutting measures in response to the pandemic-induced economic downturn is seen as a major factor in the company’s small but positive return. Moreover, the company’s innovative product development and diversification have also been seen as major contributors to their success.
Other aspects of their operations such as their strong financial position and favorable liquidity ratios have also been mentioned as reasons for their impressive performance. While the company’s earning report is not without its fair share of detractors, the overall sentiment remains positive. Analysts have suggested that DURECT CORPORATION has taken prudent steps to adapt to the changing market environment and is well-positioned to capitalize on any market opportunities that may arise in the future. As such, many remain optimistic about the company’s long-term future and believe that it will continue to be a major player in the industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Durect Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 9.19 | -36.65 | -452.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Durect Corporation. More…
| Operations | Investing | Financing |
| -34.5 | 1.34 | 21.75 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Durect Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 54.73 | 40.32 | 0.52 |
Key Ratios Snapshot
Some of the financial key ratios for Durect Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -39.7% | – | -367.9% |
| FCF Margin | ROE | ROA |
| -376.0% | -212.4% | -38.6% |
Analysis
GoodWhale has conducted an analysis of DURECT CORPORATION‘s fundamentals, and our Star Chart shows that DURECT CORPORATION is classified as an ‘elephant’, meaning it is rich in assets after deducting off liabilities. This type of company may be attractive to investors looking for a safe and stable return. However, our Health Score for DURECT CORPORATION is low at 2/10 with regard to its cashflows and debt. This means that it is less likely to be able to pay off debt and fund future operations. On the plus side, DURECT CORPORATION is strong in asset, but weak in dividend, growth, and profitability. More…
Peers
The company’s products include Suboxone, an opioid dependence treatment; and buprenorphine/naloxone, a treatment for opioid dependence. Durect Corporation‘s competitors include Lanzhou Foci Pharmaceutical Co Ltd, Taro Pharmaceutical Industries Ltd, Avadel Pharmaceuticals PLC.
– Lanzhou Foci Pharmaceutical Co Ltd ($SZSE:002644)
Lanzhou Foci Pharmaceutical Co Ltd is a Chinese company that focuses on the research and development, production, and sales of traditional Chinese medicinal materials and finished traditional Chinese medicines. As of 2022, Lanzhou Foci Pharmaceutical Co Ltd has a market capitalization of 5.46 billion yuan and a return on equity of 3.76%. The company’s products are mainly used in the fields of cardiovascular and cerebrovascular diseases, diabetes, cancer, and infectious diseases.
– Taro Pharmaceutical Industries Ltd ($NYSE:TARO)
Taro Pharmaceutical Industries Ltd is a pharmaceutical company with a market cap of 1.08B as of 2022. The company has a Return on Equity of 1.92%. The company’s products include prescription and over-the-counter drugs, topical creams and ointments, and generic drugs. The company’s products are sold in over 60 countries around the world.
– Avadel Pharmaceuticals PLC ($NASDAQ:AVDL)
Adaval Pharmaceuticals PLC is a pharmaceutical company with a focus on developing treatments for rare diseases. The company has a market cap of 492.38M as of 2022 and a return on equity of -255.63%. The company’s products include orphan drugs and treatments for conditions such as Gaucher disease and Fabry disease.
Summary
DURECT CORPORATION’s third quarter performance in FY2023 saw a significant decline in revenue from the same quarter the previous year, with a drop of 85.5%. Net income also took a hit, from -2.5 million to -3.0 million year over year. For investors, this should be a cause for caution as DURECT’s performance does not bode well for the near future. However, investors should also consider any potential long term opportunities that may arise from this period of adversity.
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