PROSPECTUS SUPPLEMENT SUMMARY
This summary highlights certain information about us, this offering and information appearing elsewhere in this prospectus supplement, in
the accompanying prospectus and in the documents we incorporate by reference. This summary is not complete and does not contain all of the information that you should consider before investing in our securities. To fully understand this offering and
its consequences to you, you should read this entire prospectus supplement, the accompanying prospectus and any related free writing prospectus that we have authorized for use in connection with this offering carefully, including the information
referred to under the heading Risk Factors in this prospectus supplement beginning on page S-5, and the financial statements and other information incorporated by reference in this prospectus
supplement and the accompanying prospectus, and the exhibits to the registration statement of which this prospectus supplement and the accompanying prospectus is a part, when making an investment decision.
About DURECT Corporation
Our Business
We are a biopharmaceutical company with research and development programs broadly falling into two categories: (i) new chemical
entities derived from our Epigenetic Regulator Program, in which we attempt to discover and develop molecules which have not previously been approved and marketed as therapeutics, and (ii) proprietary pharmaceutical programs, in which we apply
our formulation expertise and technologies largely to active pharmaceutical ingredients whose safety and efficacy have previously been established but which we aim to improve through a new formulation. We also manufacture and sell osmotic pumps used
in laboratory research.
Recent Developments
Certain Preliminary Financial Results as of December 31, 2020
Although we have not finalized our full financial results for the three months and the year ended December 31, 2020, we expect to report
that we had approximately $56.9 million in cash, cash held in escrow (approximately $15 million related to the sale of our LACTEL polymer product line) and investments at December 31, 2020.
The information above is based on preliminary unaudited information and estimates for the year ended December 31, 2020, is not a
comprehensive statement of our financial results for this period, and is subject to change pending completion of our financial closing procedures, final adjustments, completion of the audit of our financial statements and other developments that may
arise between now and the time the audit of our financial statements is completed. This preliminary estimate may change and the change may be material. Our expectation with respect to our cash, cash held in escrow and investments at December 31,
2020, is based upon management estimates and is the responsibility of management. Our independent registered public accounting firm has not conducted an audit or review of, and does not express an opinion or any other form of assurance with respect
to, these preliminary estimates. Our actual results for the three months and the year ended December 31, 2020, will not be available until after this offering is completed.
POSIMIR® (bupivacaine extended-release solution)
On February 2, 2021, we announced that the U.S. Food and Drug Administration (FDA) has approved POSIMIR® (bupivacaine solution) for infiltration use in adults for administration into the subacromial space under direct arthroscopic visualization to produce post-surgical analgesia for up to 72 hours
following arthroscopic subacromial decompression. The approval was based on positive data from a randomized, multicenter, assessor-blinded, placebo-controlled clinical trial in patients undergoing arthroscopic subacromial decompression surgery with
an intact rotator cuff. The primary outcome measures were mean pain intensity and total opioid rescue analgesia administered, both evaluated over the first 72 hours after surgery versus placebo. POSIMIR demonstrated a statistically significant
improvement in both primary outcome measures: a 1.3 point, or 20%, reduction in mean pain intensity on a 0-10 point pain scale (p=0.01), and a 67% reduction in I.V. morphine-equivalent rescue opioid use, from
a median of 12 mg in the placebo group to 4 mg in the POSIMIR group (p=0.01).
LACTEL®
Absorbable Polymers
On December 31, 2020, we completed the sale of our
LACTEL® absorbable polymer product line to Evonik for approximately $15 million.