The letter is out:
Monday February 8, 4:02 pm Eastern Time
Company Press Release
Insite Vision Distributes Its First 'Shareholder Update' of 1999
ALAMEDA, Calif.--(BW HealthWire)--Feb. 8, 1999--InSite Vision Incorporated (Amex:ISV - news), as part of its ongoing communications to investors, has disseminated it first Shareholder Update of 1999. The Shareholder Update describes its recent licensing activity and other recent developments.
The text of the Shareholder Update follows:
Dear Friend of InSite Vision:
We are pleased to report the licensing of our glaucoma treatment ISV-205 to one of the world's leading pharmaceutical companies, Pharmacia & Upjohn Inc. (NYSE: PNU - news).
We believe that if successfully developed and approved, ISV-205 could become a preferred treatment for glaucoma care worldwide. We believe that it was this promise that ignited the interest of PNU, which today markets some of the leading glaucoma treatments in the world. Among PNU's current glaucoma products is the category leader Xalatan, which has held this coveted place for some time. We feel confident that PNU is a committed partner, and that the further development and the commercialization of ISV-205 have been entrusted into capable hands.
As we reported, PNU made an immediate equity investment, at a price premium to market at the time we executed the agreement, in InSite Vision upon signing the agreement. In addition, the terms provide for additional equity investments by PNU to concur with ISV-205 progress milestones. We will also receive monthly payments from PNU for our on-going technical support on ISV-205. And, if ISV-205 is successfully commercialized, PNU will make royalty payments to InSite based on product sales.
On the financial front, even though we will provide ISV-205 technical support to PNU, the terms of the agreement will allow us to reduce our net Research and Development (R&D) expenditures. In 1999, we expect to reduce spending by approximately $3.2 million, which is about one third of our total expenditures in 1998.
With respect to new product development, we are devoting substantial resources to complete the development of ISV-900, our genetic tests for the diagnosis and prognosis of glaucoma. As we have indicated in the past, these tests could have substantial value because they address a major clinical gap in the management of glaucoma patients. We believe that ISV-900 may change the very paradigm of glaucoma management because it may enable, for the first time, the early identification of individuals at risk before intraocular pressure (IOP) progresses into the danger zone. This identification would enable eye care professionals, along with their patients, to develop a disease management program earlier. These genetic technologies may also have applications in drug discovery, as well as other areas.
At the core of our gene based glaucoma diagnostics is the TIGR gene, which is believed to play a role in most forms of glaucoma. Another gene, CYP1B1, is strongly linked to primary congenital glaucoma, a condition that if not detected quickly, may cause blindness in infants. During the past year, the TIGR gene has moved onto the center stage of glaucoma research. The number of peer-reviewed papers on the TIGR gene has grown exponentially. This reflects that the TIGR gene is enabling researchers, for the first time, a chance to look into the cause of glaucoma.
By integrating the breakthroughs of collaborating researchers, both at leading U.S. universities and international institutions, with our internal efforts, we have developed a strong proprietary position in both TIGR and CYP1B1 gene technologies. In the last three months we have received three issued patents on the TIGR gene technology and one issued patent on the CYP1B1 gene technology. In addition, we are now working on a mutation screening assay, while developing a patient database for the ISV-900 products. Meanwhile, negotiations with a number of partners, including PNU, are underway, and we will keep you apprised of our progress.
We hope that you have found this Shareholder Update informative. We will make every effort to keep our shareholders fully informed on the continuing progress of our Company. Meanwhile, please do not hesitate to contact us when you have any questions. As always we thank you for your interest, patience and support.
Sincerely,
S. Kumar Chandrasekaran, Ph.D.
InSite Vision is an ophthalmic product development company focused on genetic research for diagnosis and prognosis of glaucoma and a novel glaucoma treatment using its proprietary DuraSite technology.
This Shareholder Update contains, among other things, certain statements of a forward-looking nature relating to future events or the future business performance of InSite Vision. Such statements entail a number of risks and uncertainties including the results of preclinical and clinical studies and determinations by the U.S. Food and Drug Administration, as well as the Risk Factors listed from time to time in the Company's SEC filings including, but not limited to, its Form 10-Q for the quarter ended September 30, 1998.
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Contact:
Insite Vision
Sandra Heine, 510/865-8800 (Company Contact)
OR
Core Communications Group, Inc.
Robert Ferri, 415/331-7003 (SF)(Investor Contact)
rferri@nextwavestocks.com
Joshua Z. Levine, 516/487-8322 (NY) (Investor Contact)
jzlavine@nextwavestocks.com
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