Durect (DRRX) CFO Reports 110,000-Share Option Grant at $1.30

Rhea-AI Filing Summary

Timothy M. Papp, Chief Financial Officer of DURECT CORP (DRRX), reported stock-based transactions on 09/08/2025. He was granted an option for 110,000 shares with an exercise price of $1.30 that expires on 10/14/2034. The option vests in installments of one-sixteenth of the grant every three months, subject to continued service. The Form 4 also reports a transaction coded M reflecting acquisition of 110,000 common shares at $1.30, leaving total reported beneficial ownership of 431,659 shares following the transactions.

Positive

• Insider ownership increased to 431,659 shares, aligning executive and shareholder interests
• Grant and vesting terms disclosed with clear schedule (one-sixteenth every three months), improving transparency

Negative

• Potential dilution of up to 110,000 shares if the option is exercised
• Long-duration option (expires 10/14/2034) extends possible dilution horizon

Insights

Financial Analyst

TL;DR: Routine executive option and share acquisition increases insider ownership while creating potential dilution if exercised.

The filing shows a contemporaneous grant and acquisition recorded under code M, indicating a compensatory or non-market transaction. The CFO acquired economic exposure to 110,000 additional shares via an option and recorded the same amount as acquired common stock at $1.30. Following the transactions, the reporting person holds 431,659 shares beneficially. For investors, higher insider ownership can align management interests with shareholders; however, the grant represents potential future dilution equal to the option amount if exercised.

Corporate Governance Expert

TL;DR: Standard equity compensation disclosure with explicit vesting schedule and signature; no governance red flags in the filing itself.

The Form 4 clearly discloses the grant terms including a staggered vesting schedule of one-sixteenth every three months and an expiration date of 10/14/2034. The reporting person is identified as an officer (Chief Financial Officer) and the form is signed. The disclosure meets Section 16 reporting requirements and provides necessary transparency on the timing and nature of the award. The filing does not present evidence of related-party transfers or atypical governance practices.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Papp Timothy M.

(Last) (First) (Middle)

C/O DURECT CORPORATION

10240 BUBB ROAD

(Street)

CUPERTINO CA 95014

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
DURECT CORP [ DRRX ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director		10% Owner
X	Officer (give title below)		Other (specify below)
	Chief Financial Officer

3. Date of Earliest Transaction (Month/Day/Year)
09/08/2025

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	09/08/2025		M		110,000	A	$1.3	431,659	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Stock Option (right to buy)	$1.3	09/08/2025		M			110,000	(1)	10/14/2034	Common Stock	110,000	$0	0	D

Explanation of Responses:

1. The option will vest and become exercisable in installments of one-sixteenth (1/16) of the total number of shares at the end of each three-month period following the grant date, subject to the Reporting Person providing continuous service to the Issuer through the applicable vesting date.

	/s/ Timothy M. Papp	09/08/2025
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

FAQ

What did DRRX CFO Timothy M. Papp report on Form 4?

The Form 4 reports acquisition of 110,000 shares and a stock option for 110,000 shares with an exercise price of $1.30 on 09/08/2025.

How many shares does Timothy M. Papp beneficially own after the transaction (DRRX)?

The filing states 431,659 shares beneficially owned following the reported transactions.

What are the exercise price and expiration date of the option reported for DRRX?

The option has an exercise (conversion) price of $1.30 and an expiration date of 10/14/2034.

What is the vesting schedule for the stock option in the DRRX Form 4?

The option vests in installments of one-sixteenth (1/16) of the total grant at the end of each three-month period following the grant date, subject to continued service.

What does transaction code 'M' mean on this Form 4 for DRRX?

The filing uses code M to report the transactions; the Form shows the acquisitions recorded under code M on 09/08/2025 for 110,000 shares and the related option.