DURECT Corporation, Q4 2008 Earnings Call Transcript

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2009-02-09 14:18:09.0

Tags: Call Transcript, Earnings, Partner, Seeking Alpha, Durect Corp.

Question-and-Answer Session

Operator

(Operator Instructions). Okay, we do have our first question from. Sorry I thought we had a question from Ken, but he no longer seems to have.

Jim Brown

It's all right.

Operator

Here we do, Ken with RBC Financial, and that's Ken Trbovich with RBC Capital.

Ken Trbovich - RBC Capital

Hey, didn't mean to back out of the queue there. Appreciate taking the question. I guess the first one I wanted start with, I understand the conservatives and the reason for perhaps being as conservative as you are at the start of the year for guidance, but I just wanted to be certain that we understand what new term milestones you might have, if any, for example out of the Sufentanil program or others that you might earn in 2009 that are not included in the guidance.

Jim Brown

I would say the potential milestones, in truth, our partners haven't given us in most cases the freedom to describe in detail what all the different milestone payments are and what they are associated with, so I want to speak a tiny bit in general. But of course, this year our milestone payments could be zero, or I would say they could be at high as in the range of about $9 million for the year.

Ken Trbovich - RBC Capital

Okay.

Jim Brown

It's not attributable, solely to Sufentanil patch. There are a couple of other things.

Ken Trbovich - RBC Capital

Okay

Jim Brown

Just talking in terms of that range.

Ken Trbovich - RBC Capital

Not a problem. And then just with regard to the decision or the poster and perhaps, I guess maybe not a decision but posturing on POSIDUR, are you actively now seeking a partner here in the US. I know the language here in the past has really sort of exclusively focused on trying to build a commercial organization, and why you are not closing that door.

It certainly seems like you are opening the door to partnering. So I am just trying to get a sense for how aggressively you are looking for those partners.

Jim Brown

It's a great remark, and we are actually not necessarily even need to aggressively look for partners, we had a lot of partners to aggressively come talk to us. So there are a lot of people that are quite interested in this. Because of the fact that it's first-in-class therapy and, because it's the only product that we are aware about that that has demonstrated kind of data we have seen in the Phase IIb where hope your experience is showing better paying control than with narcotics. And all of that being said, as we look forward to how we are going to be growing DURECT in the future, we have to take these discussions very seriously.

 

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