DURECT Signs POSIDUR^TM Manufacturing Agreement With Hospira

DURECT Corporation announced today that we have entered into a long term manufacturing and supply agreement with Hospira Worldwide, Inc. for POSIDUR^TM, DURECT's post-surgical pain management investigational drug which is currently in Phase II clinical trials. Under the agreement, Hospira's One 2 One® contract manufacturing services will provide DURECT's clinical and commercial supplies of POSIDUR on a worldwide basis. The two parties have begun manufacturing development activities in accordance with the agreement.

"Hospira's capabilities, expertise and capacity in manufacturing parenteral products makes them an ideal partner for us, and the establishment of this agreement, following on the heels of our recent development and commercialization collaboration with Nycomed, now one of the 25 largest pharmaceutical companies in the world as a result of its Altana acquisition, is a second key milestone in our POSIDUR development program," said James Brown, Chief Executive Officer of DURECT.

"We look forward to supporting DURECT's manufacturing needs to help them bring POSIDUR to market around the world," said Anthony Cacich, Vice President and General Manager, Contract Manufacturing Services, Hospira. "Our collaboration with DURECT exemplifies how Hospira One 2 One partners with its clients from development to commercialization to deliver quality parenteral products and leading-edge technologies to market."

POSIDUR (SABER™-Bupivacaine) is a long-acting local anesthetic under development by DURECT for the treatment of post-surgical pain. It is intended to be injected during surgery, where it continuously releases therapeutic levels of bupivacaine in a controlled fashion, providing up to 72 hours of uninterrupted local analgesia. POSIDUR's performance is due to DURECT's proprietary SABER delivery system, which is an injectable, biodegradable drug delivery technology that allows for less post-injection burst than is typical of polymer-based systems. On November 29, 2006, DURECT and Nycomed signed a $202 million agreement to develop and commercialize POSIDUR in Europe and other select countries. POSIDUR is currently in Phase II clinical development. DURECT and Nycomed anticipate moving the program into Phase III in 2007.

SOURCE: Hospira One 2 One