On January 2, 2019, DURECT Corporation received written notice from Sandoz AG that effective January 27, 2019, Sandoz AG is terminating the Development and Commercialization Agreement, dated May 5, 2017, as amended (the Sandoz Agreement"). As a result of this termination, Sandoz AG will be returning its exclusive commercialization rights to develop and market POSIMIR (bupivacaine extended release solution) in the United States. POSIMIR is DURECT's investigational post-operative pain relief depot that utilizes DURECT's patented SABER technology and is designed to deliver bupivacaine to provide up to three days of pain relief after surgery. The parties are in dispute with regard to Sandoz AG's obligation to pay a termination fee to DURECT. DURECT has initiated a formal dispute resolution process related to the termination fee.