InSite Vision Announces Clinical Development Plan For ISV-502

BUSINESS WIRE

Successful FDA Meeting Informs Ongoing Late-Stage Clinical Program

ALAMEDA, Calif.--(BUSINESS WIRE)--InSite Vision Incorporated (OTCBB: INSV) today reported that the company recently met with the U.S. Food and Drug Administration (FDA or “the Agency”) regarding the Phase 3 clinical program for ISV-502 (AzaSite Plus™). ISV-502 is a topical combination antibiotic/corticosteroid product formulated with InSite Vision’s patented DuraSite® technology to enhance the retention time of the therapeutic agents on the surface of the eye leading to increased ocular tissue concentrations.

Based on a review of the data from InSite’s initial Phase 3 clinical trial, the Agency provided clear feedback on the late-stage development plan for the possible New Drug Application (NDA) filing of ISV-502 for the treatment of blepharitis (inflammation of the eyelid). Following discussion with the FDA, InSite Vision will conduct a pilot study to enable the revision of the Phase 3 protocol for pivotal clinical trials. The pilot study will seek to demonstrate ISV-502’s ability to delay the exacerbation and/or recurrence of acute episodes of blepharitis. InSite Vision may seek another meeting with the FDA upon completion of the pilot study to consider the final Phase 3 trial protocol. Additionally, the FDA stated that it would be willing to consider a Special Protocol Assessment (SPA) for ISV-502 prior to the start of the next Phase 3 clinical trial.

“We are pleased to have defined a clear path for the late-stage development of ISV-502,” stated Kamran Hosseini, M.D., Ph.D., Vice President, Clinical Affairs and Chief Medical Officer for InSite Vision. “ISV-502 has demonstrated an ability to improve clinical outcomes by reducing inflammation and eradicating bacteria from the conjunctiva and eyelid. We believe that further investigation will demonstrate that ISV-502 is more effective than an antibiotic or corticosteroid alone in treating blepharitis.”

“Our meeting with the FDA has reaffirmed our commitment to the continued development of ISV-502,” said Louis Drapeau, Chief Executive Officer of InSite Vision. “Based on the FDA’s guidance, we intend to advance this promising new ophthalmic product into late-stage development and will seek a partner for the Phase 3 program and commercialization.”

In December 2008 InSite Vision completed a Phase 3 clinical trial of ISV-502 in patients presenting with signs and symptoms of bacterial infection and inflammation of the eye, including lid margin redness or swelling, conjunctival redness or ocular discharge and lid irritation. In the three-arm study, the anti-inflammatory and anti-microbial effects of ISV-502 (a combination of 1% azithromycin and 0.1% dexamethasone) were compared with either AzaSite® (azithromycin ophthalmic solution 1%), InSite’s topical antibiotic eye drop currently marketed for the treatment of bacterial conjunctivitis, or dexamethasone, a commonly used corticosteroid intended to address inflammation. ISV-502 improved clinical outcomes as compared to treatment with a corticosteroid alone or antibiotic alone in the reduction of inflammatory signs and symptoms and bacterial eradication, respectively, but did not achieve statistical significance in all arms of the trial. In addition, ISV-502 proved to be very safe and it was very well tolerated. Based on these data, InSite Vision requested the recently-held meeting with the FDA to review trial results and discuss plans for further Phase 3 clinical evaluation.

About ISV-502 (AzaSite Plus) and DuraSite®

ISV-502 combines 1% azithromycin and 0.1% dexamethasone in InSite's patented DuraSite® sustained delivery vehicle to provide simultaneous antimicrobial and anti-inflammatory treatment for the treatment of eyelid infection and inflammation in adults.

InSite’s DuraSite technology is a synthetic polymer-based formulation designed to achieve increased retention time of the therapeutic agents on the surface of the eye relative to conventional topical therapies that are rapidly rinsed away by tears.

About Blepharitis

Blepharitis a frequent and recurring condition characterized by inflammation of the eyelids, particularly the eyelid margins where the eyelashes grow. It typically occurs as a result of a malfunction of the oil glands at the base of the eyelashes leading to the growth of bacteria. Blepharitis can be a chronic condition that is difficult to treat. Current available approaches are limited in their efficacy and may include eye hygiene practices, topical and/or systemic antibiotics and topical corticosteroids.

About InSite Vision

InSite Vision is committed to advancing new and superior ophthalmologic products for unmet eye care needs. InSite Vision is recognized for the discovery and development of novel ocular pharmaceutical products based on its DuraSite® bioadhesive polymer core technology, an innovative platform that extends the duration of drug delivery on the eye’s surface, thereby reducing frequency of treatment and improving the efficacy of topically delivered drugs. The DuraSite platform is currently leveraged in two products for the treatment of bacterial eye infections, AzaSite® (azithromycin ophthalmic solution) 1% and Besivance™ (besifloxacin ophthalmic suspension) 0.6%. AzaSite is approved in the United States and Canada and currently marketed by InSite Vision’s North American partner, Inspire Pharmaceuticals in the United States. InSite Vision has formed multiple strategic licensing and distribution agreements with qualified partners to market AzaSite in select countries in Europe, Asia and South America upon regulatory approval in those regions. Besivance was approved by the U.S. Food and Drug Administration in 2009 and will be commercialized by Bausch & Lomb and Pfizer Inc. in the second quarter of 2009.

InSite Vision’s ophthalmic product development portfolio also includes ISV-502 and additional product candidates leveraging the company’s core technologies. For further information on InSite Vision, please visit www.insitevision.com.

Forward Looking Statements

This news release contains certain statements of a forward looking nature relating to future events, including the proposed indications and clinical status of ISV-502 (AzaSite Plus), the potential benefits of ISV-502, including as compared to other available treatments, InSite's plans with respect to a future pilot study and future clinical trials for ISV-502 and discussions with the FDA regarding the same, the FDA’s consideration of a SPA with respect to ISV-502 prior to Phase 3 trials, InSite’s plans to partner ISV-502, InSite's plans to advance its AzaSite family of products, and InSite's corporate goals. Such statements entail a number of risks and uncertainties, including but not limited to: InSite's ability to commence additional clinical trials with respect to ISV-502 and InSite's various other product candidates and the results of such trials; the results of the planned pilot study on ISV-502, InSite’s ability to work with the FDA to develop an appropriate Phase 3 protocol for ISV-502, the clinical results of ISV-502, as well as InSite's other product candidates; InSite's reliance on third parties for the commercialization of ISV-502 and its other products; the ability of InSite to enter into corporate collaborations for ISV-502 and with respect to its other product candidates; InSite's ability to successfully market ISV-502; InSite's ability to expand its technology platform to include additional indications; InSite's ability to compete effectively, either alone or through its partners, with other companies offering competing products or treatments; InSite's ability to maintain and develop additional collaborations and commercial agreements with corporate partners, including those with respect to AzaSite and ISV-502; its ability to adequately protect its intellectual property and to be free to operate with regard to the intellectual property of others; and determinations by the FDA, including those with respect to ISV-502. Reference is made to the discussion of these and other risk factors detailed in InSite Vision's filings with the Securities and Exchange Commission, including its annual report on Form 10-K and its quarterly reports on Form 10-Q, under the caption "Risk Factors" and elsewhere in such reports. Any forward looking statements or projections are based on the limited information currently available to InSite Vision, which is subject to change. Although any such forward looking statements or projections and the factors influencing them will likely change, InSite Vision undertakes no obligation to update the information. Such information speaks only as of the date of its release. Actual events or results could differ materially and one should not assume that the information provided in this release is still valid at any later date.

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