# EDGAR Filing Document

**Accession Number:** 0001082038
**File Stem:** 0001193125-25-167252
**Filing Date:** 2025-7
**Character Count:** 15971
**Document Hash:** 6c9a9c1574dd598dde30e59ae457f85b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-167252.hdr.sgml**: 20250729

**ACCESSION NUMBER**: 0001193125-25-167252

**CONFORMED SUBMISSION TYPE**: SC14D9C

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20250729

**DATE AS OF CHANGE**: 20250729

**SUBJECT COMPANY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DURECT CORP
- **CENTRAL INDEX KEY:** 0001082038
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 943297098
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** SC14D9C
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 005-60499
- **FILM NUMBER:** 251157836

**BUSINESS ADDRESS:**
- **STREET 1:** 10240 BUBB ROAD
- **CITY:** CUPERTINO
- **STATE:** CA
- **ZIP:** 95014
- **BUSINESS PHONE:** 4087771417

**MAIL ADDRESS:**
- **STREET 1:** 10240 BUBB ROAD
- **CITY:** CUPERTINO
- **STATE:** CA
- **ZIP:** 95014
**FILED BY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DURECT CORP
- **CENTRAL INDEX KEY:** 0001082038
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 943297098
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** SC14D9C

**BUSINESS ADDRESS:**
- **STREET 1:** 10240 BUBB ROAD
- **CITY:** CUPERTINO
- **STATE:** CA
- **ZIP:** 95014
- **BUSINESS PHONE:** 4087771417

**MAIL ADDRESS:**
- **STREET 1:** 10240 BUBB ROAD
- **CITY:** CUPERTINO
- **STATE:** CA
- **ZIP:** 95014

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**SCHEDULE 14D-9**

**SOLICITATION/RECOMMENDATION STATEMENT** 

**UNDER SECTION 14(d)(4) OF THE SECURITIES EXCHANGE ACT OF 1934** 

## DURECT CORPORATION
**(Name of Subject Company)** 

**(Name of Person(s) Filing Statement)** 

**Common stock, par value $0.0001 per share** 

**(Title of Class of Securities)** 

**266605500** 

**(CUSIP Number of Class of Securities)** 

**James E. Brown**

**Chief Executive Officer**

**DURECT Corporation** 

**10240 Bubb Road** 

**Cupertino, CA 95014** 

**(408) 777-1417** 

**(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications on Behalf of the Person(s) Filing Statement)** 

***With copies to:***

**Stephen Thau** 

**David Schwartz** 

**Albert Vanderlaan** 

**Orrick, Herrington & Sutcliffe LLP** 

**51 West 52nd Street** 

**New York, NY 10019** 

**(212) 506-5076** 

☒ Check the box if the filing relates solely to preliminary communications made before the commencement of a
tender offer.

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This Schedule 14D-9 filing consists of certain communications relating to the proposed acquisition of DURECT Corporation, a Delaware corporation (the "***Company***"), by Bausch Health Americas, Inc., a Delaware corporation ("***Parent***"), BHC Lyon Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent ("***Merger Sub***"), pursuant to the terms and subject to the conditions of an Agreement and Plan of Merger, dated as of July 28, 2025 (the "***Merger Agreement***"), by and among the Company, Parent, Merger Sub and solely for purposes of Section 6.10 of the Merger Agreement, Bausch Health Companies Inc., a corporation continued under the laws of the Province of British Columbia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Exhibit 99.1: Q&A Document for Employees, sent to the Company's employees, dated July 29, 2025.

Exhibit 99.1 was first used or made available on July 29, 2025.

**ADDITIONAL INFORMATION AND WHERE TO FIND IT** 

The tender offer described in this communication has not yet commenced. This communication is neither an offer to purchase nor a solicitation of an offer to sell shares of the Company. At the time the offer is commenced, Parent and Merger Sub will file a Tender Offer Statement on Schedule TO with the SEC, and the Company will file a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the offer. **The Company stockholders and other investors are urged to read the tender offer materials (including an Offer to Purchase, a related Letter of Transmittal and certain other offer documents) and the Solicitation/Recommendation Statement, as they may be amended from time to time, when they become available because they will contain important information that should be read carefully before any decision is made with respect to the tender offer.** These materials will be sent free of charge to all stockholders of the Company. In addition, all of these materials (and all other materials filed by the Company with the SEC) will be available at no charge from the SEC through its website at www.sec.gov. Investors and security holders may also obtain free copies of the documents filed with the SEC by the Company at <u>https://www.durect.com/investors/</u>.

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**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, may be forward-looking statements. These forward-looking statements may be accompanied by such words as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "potential," "project," "target," "should," "likely," "will" and other words and terms of similar meaning. Forward-looking statements include, among other things, statements regarding the potential benefits of the proposed transaction; the prospective performance, future plans, events, expectations, performance, objectives and opportunities and the outlook for the Company's business; filings and approvals relating to the transaction; the expected timing of the completion of the transaction; the ability to complete the transaction considering the various closing conditions; any potential strategic benefits, synergies or opportunities expected as a result of the proposed transaction; and any assumptions underlying any of the foregoing. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those currently anticipated due to a number of risks and uncertainties.

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Risks and uncertainties that could cause the actual results to differ from expectations contemplated by forward-looking statements include: uncertainties as to the timing of the tender offer and merger; the risk that the proposed transaction may not be completed in a timely manner or at all; uncertainties as to how many of the Company's stockholders will tender their stock in the offer; the possibility that various closing conditions for the transaction may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement; the effect of this announcement or pendency of the proposed transaction on the Company's ability to retain and hire key personnel, its ability to maintain relationships with its customers, suppliers and others with whom it does business, its business generally or its stock price; risks related to diverting management's attention from the Company's ongoing business operations; the risk that stockholder litigation in connection with the proposed transaction may result in significant costs of defense, indemnification and liability; the potential that the strategic benefits, synergies or opportunities expected from the proposed acquisition may not be realized or may take longer to realize than expected; the successful integration of the Company into Parent subsequent to the closing of the transaction and the timing of such integration; other business effects, including the effects of industry, economic or political conditions outside of the Company's control; transaction costs; and other risks and uncertainties detailed from time to time in documents filed with the SEC by the Company, including the Company's current annual report on Form 10-K on file with the SEC, as well as the Schedule 14D-9 to be filed by the Company and the tender offer documents to be filed by Parent and Merger Sub.

The Company is providing the information in this filing as of this date and assumes no obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as required by law.

---

| | |
|:---|:---|
| **Exhibit<br>No.** | **Description** |
| 99.1 | Q&A Document for Employees, sent to the Company's employees, dated July 29, 2025. |

---

## Exhibit 99.1

**Exhibit 99.1** 

<u>DURECT Employee Q&A</u> 

Agreement Between DURECT and Bausch

**1)** **What has been announced?** 

On July 28, 2025, DURECT and Bausch Health Companies Inc. ("Bausch") jointly announced an agreement under which Bausch will acquire all outstanding shares of common stock of DURECT for $1.75

per share in an all-cash transaction for an upfront consideration of approximately $63 million at closing, with the potential for two additional net sales milestone payments of up to $350 million in the aggregate (subject to certain adjustments in respect of a retention plan) if the milestone is achieved before the earlier of the 10 year anniversary of the first commercial sale in the United States and December 31, 2045. Upon the closing of the transaction, DURECT will become a wholly owned subsidiary of Bausch. The press release detailing this news can be found here https://www.prnewswire.com/news-releases/bausch-health-to-acquire-durect-corporation-strengthening-commitment-to-developing-innovative-solutions-for-patients-with-liver-disease-302515568.html.

**2)** **When will the transaction close? What are the requirements to close?** 

The transaction is expected to close in the third quarter of 2025.

The transaction is conditioned on a majority of the outstanding shares of DURECT common stock being tendered into the tender offer and not withdrawn as well as other customary closing conditions.

DURECT's Board has unanimously approved the transaction and recommended that DURECT stockholders accept the offer and tender their shares pursuant to the offer.

**3)** **Will DURECT stock continue to be traded on Nasdaq?** 

No. Upon the transaction's closing, DURECT's common stock will cease to trade on the Nasdaq.

**4)** **If I hold DURECT common stock, what should I expect if the transaction closes?** 

If you are an DURECT common stockholder, you will receive $1.75 per share in cash and a CVR with the potential for two additional net sales milestone payments of up to $350 million in the aggregate (subject to certain adjustments in respect of a retention plan) if the milestone is achieved before the earlier of the 10 year anniversary of the first commercial sale in the United States and December 31, 2045.

**5)** **What will be the impact on our equity programs? What does this do to RSU Awards or stock options I have been awarded?** 

Prior to the transaction's closing, all outstanding RSUs will be vested and settled into DURECT common stock, subject to applicable tax withholding. The shares of DURECT common stock received upon settlement will receive the same merger consideration as the DURECT common stockholders.

Prior to the transaction's closing, all outstanding stock options will be accelerated.

At the transaction's closing, each outstanding stock option with a per share exercise price that is less than $1.75 per share will be cancelled and receive (i) a cash payment equal to the difference between $1.75 per share and the exercise price underlying such stock option, and (ii) the right to participate in a retention plan to receive a pro rata portion of the two potential additional net sales milestone payments of up to $350 million in the aggregate if the milestone is achieved before the 10 year anniversary of the transaction's closing.

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Holders of such in-the-money stock options also may elect to exercise their stock options prior the transaction's closing and to receive the same merger consideration as the DURECT common stockholders.

Finally, each outstanding stock option with a per share exercise price that is equal to or more than $1.75 per share will be cancelled and receive the right to participate in a retention plan to receive a pro rata portion of the two potential additional net sales milestone payments of up to $350 million in the aggregate if the milestone is achieved before the 10 year anniversary of the transaction's closing (to the extent the exercise price of the cancelled options are less than the per CVR value of the milestone payment).

Over the coming weeks, further information will be provided.

**6)** **Will my compensation or benefits change?** 

No significant compensation or benefit changes are expected prior to the transaction's closing except as noted below in #7 for the bonuses earned during fiscal year 2025. Changes in benefits that may result from the integration will be clearly communicated as additional information becomes available. It is our objective for the integration to be as smooth as possible for our employees. As noted above, we will implement a retention program linked to the cancellation of your stock options, with additional details to be provided.

**7)** **Will this impact our bonus program, bonus metrics, and any payouts?** 

Bonuses earned during fiscal year 2025 will be paid out at the transaction's closing based on achievement against the performance objectives as of the transaction's closing, which we expect to result in a payout of 56% of target. Continuing employees after the transaction will be enrolled in a separate bonus program for the remainder of 2025.

**8)** **Does the work I do or decisions I make change during the sign to close period?** 

Between signing and closing, the transaction agreement requires DURECT to continue to conduct its operations in the ordinary course of business consistent with past practice. This includes DURECT using its reasonable best efforts to preserve intact its business, to keep available the services of its current officers and employees, to preserve the present relationships with those having significant business relationships with the Company (including governmental authorities), and to comply with and maintain all permits required to conduct our business.

Until the transaction closes, DURECT and Bausch remain separate companies. Partners should continue to work with their existing contacts at DURECT.

**9)** **Will there be workforce reductions?** 

Until the transaction closes, our companies will continue to operate separately.

As the process allows, integration planning teams consisting of representatives from both companies will prepare thoughtful plans to bring the best of our two companies together to achieve the strategic rationale behind the agreement.

**10)** **Can I talk about this with my friends and family?** 

News of the transaction was made public in a press release issued on July 29, 2025. It is important that you do not speculate further about the transaction.

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**11)** **What should I do if someone from the media or an investor asks about the transaction?** 

We ask that you do not respond to media or investor inquiries. If you receive any media or investor inquiries, please pass their information on to DURECT's Chief Financial Officer, Timothy Papp (tim.papp@durect.com).

**12)** **How will I stay informed?** 

We are committed to keeping you informed as appropriate throughout this process. We are focused on a successful and smooth transition and will communicate with you as we have updates to share.