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Alpharma to Develop and Commercialize DURECT's ELADUR Pain Patch

Cupertino, CA-

September 22, 2008

DURECT Corporation (Nasdaq: DRRX) announced today that it has entered into a development and license agreement with an affiliate of Alpharma Inc. (NYSE: ALO) granting such party the exclusive worldwide rights to develop and commercialize ELADUR, DURECT's investigational transdermal bupivacaine patch.

Under the terms of the agreement between Alpharma's affiliate, Alpharma Ireland Limited, and DURECT, Alpharma will pay DURECT an upfront license fee of $20 million, with possible additional payments of up to $93 million upon the achievement of predefined development and regulatory milestones spread over multiple clinical indications and geographical territories as well as possible additional payments of up to $150 million in sales based milestones...

...up to a possible $263 million before royalties

If ELADUR is commercialized, Durect would also receive a royalty on product sales. Click here for source