InSite Vision To Advance New Ocular Anti-Inflammatory Candidate

BUSINESS WIRE

ISV-303 Leverages DuraSite® Technology to Improve Ocular Distribution and Potential Activity

ALAMEDA, Calif.--(BUSINESS WIRE)--InSite Vision Incorporated (OTCBB: INSV), a company developing ophthalmic products for unmet eye care needs, today announced plans to advance new development candidate ISV-303, a topical anti-inflammatory product intended to reduce the pain and swelling associated with ocular surgery. InSite Vision formulated a lower concentration of bromfenac with its proprietary DuraSite® technology to create a proprietary therapeutic product. InSite Vision intends to advance ISV-303 into clinical studies pending the completion of Investigational New Drug-enabling toxicology studies in the first half of 2010.

“ISV-303 uses a lower concentration of an approved product and combines it with a commercially-proven technology to create a promising therapeutic that we believe will offer significant safety, efficacy and dosing advantages,” said Kamran Hosseini, M.D., Ph.D., Chief Medical Officer and Vice President, Clinical Affairs. “Our DuraSite platform offers a number of therapeutic advantages, as has been demonstrated in two commercial products, AzaSite and Besivance, which leverage this technology. In preclinical studies, ISV-303 appears to offer compelling benefits that we hope will translate into an improved, easy-to-use eye drop to alleviate the pain and swelling associated with cataract surgery. We look forward to advancing this new development candidate into clinical trials next year.”

Bromfenac (Xibrom™, marketed by ISTA Pharmaceuticals) is a topical non-steroidal anti-inflammatory product approved in the U.S. for the treatment of postoperative inflammation in patients who have undergone cataract extraction. By combining a lower concentration of bromfenac with DuraSite, InSite Vision’s proven bio-adhesive polymer technology, ISV-303 is intended to extend the duration of drug residence on the eye’s surface to facilitate better penetration and thus reduce dosing, while potentially improving both efficacy and side effect profiles. In preclinical studies to date, ISV-303 demonstrated a superior delivery and ocular distribution profile when compared to the commercially available product. Further, ISV-303’s improved distribution profile was consistent across all ocular tissues, including both the front and back of the eye. InSite Vision plans to present data from its preclinical studies at an upcoming scientific meeting.

About DuraSite

InSite's DuraSite sustained delivery technology is a patented synthetic polymer-based formulation designed to extend the residence time of a drug relative to conventional topical therapies. It enables topical delivery of a solution, gel or suspension and can be customized for delivering a wide variety of potential drug candidates. The DuraSite platform is currently leveraged in two commercial products for the treatment of bacterial eye infections, AzaSite® (azithromycin ophthalmic solution) 1% and Besivance™ (besifloxacin ophthalmic suspension) 0.6%. InSite vision is also applying DuraSite to clinical- and preclinical-stage product candidates to create a portfolio of novel ophthalmic products.

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 commercial 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 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 Asia and South America upon regulatory approval in those regions. Besivance was approved by the U.S. Food and Drug Administration in the second quarter 2009 and is being marketed by Bausch & Lomb and Pfizer Inc.

InSite Vision’s ophthalmic product development pipeline 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, InSite's plans to advance its ophthalmologic products, InSite’s plans to file an Investigational New Drug application for ISV-303 and commence clinical trials and the timing thereof, the expected indications and benefits of ISV-303, the implication that AzaSite will be commercialized in various territories outside the U.S. and Canada upon regulatory approval in those territories, and InSite's corporate goals. Such statements entail a number of risks and uncertainties, including but not limited to: the results of any future clinical trials InSite may initiate, including with respect to ISV-303; InSite’s ability to obtain Food and Drug Administration (FDA) approval to commence clinical trials for ISV-303 and the timing thereof; InSite's reliance on third parties for the commercialization of its products; the ability of InSite to enter into corporate collaborations for its product candidates; InSite's ability to expand its product 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; 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. 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.

AzaSite® and DuraSite® are registered trademarks of InSite Vision Incorporated.

Xibrom™ (bromfenac ophthalmic solution) 0.09%, is a trademark of ISTA Pharmaceuticals.

BESIVANCE™ is a trademark of Bausch & Lomb Incorporated.

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