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DURECT Corporation Announces Third Quarter 2010 Financial Results
Date:11/3/2010

e quarter declined to $4.2 million from $6.1 million in the previous quarter, reflecting the first full quarter of our collaboration with Hospira covering the development and commercialization of POSIDUR in the U.S. and Canada, and we anticipate that we will be cash flow positive for all of 2010 by approximately $6 million."Business Highlights:•

REMOXY.  Our understanding is that King anticipates that in the fourth quarter of 2010 it will resubmit the NDA for REMOXY intended to address all FDA comments in the Complete Response Letter.  In July 2009, King met with the FDA to discuss the Complete Response Letter received in December 2008 regarding the REMOXY NDA.  Assuming Pfizer completes its acquisition of King, Pfizer will assume the development and commercialization rights and obligations to REMOXY.REMOXY, an investigational drug, is a unique long acting oral formulation of oxycodone intended to treat moderate to severe pain. Based on DURECT's ORADUR® technology, which is covered by issued patents and pending patent applications owned by us, REMOXY is designed to resist common methods of prescription drug misuse and abuse.•

POSIDUR (SABER™-Bupivacaine) Post-Operative Pain Relief Depot.  In June 2010, we entered into an agreement with Hospira covering the development and commercialization of POSIDUR in the U.S. and Canada.  Under terms of the agreement, Hospira made an upfront payment to us of $27.5 million, with the potential for up to an additional $185 million in performance based milestone payments based on the successful development, approval and commercialization of POSIDUR.  For the U.S. and Canada, the two companies will jointly direct and equally fund the remaining development costs for POSIDUR, while Hospira will have exclusive commercialization rights with sole funding responsibility for commercialization activities.  In addition, if commercialized, Hospira will pay DUR
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