Bausch Health Companies Inc. (BHC) Acquires DURECT in $413 Million Deal to Tackle Alcoholic Hepatitis

In this article, we will be taking a look at the 12 Cheap Healthcare Stocks to Buy Now. Bausch Health Companies is one of them.

Bausch Health Companies Inc. (NYSE:BHC), a global specialty pharmaceutical company, has recently gained attention as an undervalued player in healthcare due to strategic acquisitions and pipeline developments rather than financial trends alone. The company focuses on areas including eye health, gastroenterology, hepatology, neurology, and dermatology. It is among the cheap healthcare stocks. 

The most notable development is Bausch Health Companies Inc. (NYSE:BHC)’s acquisition of DURECT Corporation, announced in July 2025 and expected to close in Q3 2025. Valued at $63 million upfront with up to $350 million in milestone payments, the deal brings larsucosterol, an epigenetic modulator with FDA Breakthrough Therapy designation for alcoholic hepatitis (AH), a disease with no approved therapies in the U.S. This move strengthens the company’s hepatology portfolio alongside its Phase 3 rifaximin SSD program targeting cirrhotic patients.

Bausch Health Companies Inc. (NYSE:BHC) is also advancing other key pipeline assets. Larsucosterol could become a first-in-class therapy addressing an estimated 164,000 annual U.S. hospitalizations for AH. Rifaximin SSD is in Phase 3 trials to prevent hepatic encephalopathy in cirrhosis patients, with topline results expected by early 2026. In the medical aesthetics space, the firm recently launched the Fraxel FTX laser in the U.S., obtained Canadian clearance for Thermage FLX skin tightening, and awaits European approval for Clear + Brilliant Touch.

These moves reflect a broader strategy of focusing on high-value specialty therapeutics and underserved niches rather than mass-market competition. With larsucosterol’s potential breakthrough status, Bausch Health Companies Inc. (NYSE:BHC) positions itself as a leader in hepatology. Recently, the DURECT tender offer was extended to September 10, positive reimbursement for PrCABTREOTM gel in Canada was announced, and the company reinforced its leadership with strategic board appointments and continued patient-focused initiatives.

While we acknowledge the potential of BHC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure. None.