Inspire

In August 2010, Inspire announced it has entered into an Amended and Restated License, Development and Marketing Agreement with Allergan, Inc., which revises terms related to the PROLACRIA^TM development program and Inspire's right to receive revenues from Allergan based on net sales of RESTASIS^® and any other human ophthalmic formulations of cyclosporine owned or controlled by Allergan. Under the amended agreement, which now runs through December 31, 2020, Inspire is entitled to receive revenues at one global rate based on net sales of RESTASIS and any other human ophthalmic formulation of cyclosporine owned or controlled by Allergan, with no requirement to co-promote RESTASIS. Under the amended agreement, Inspire now has unilateral control over any future PROLACRIA development and commercialization.

In December 2003, Inspire entered into an agreement with Allergan to co-promote ELESTAT^® (epinastine HCl ophthalmic solution) 0.05% to ophthalmologists, optometrists and allergists in the U.S. ELESTAT was approved by the U.S. Food and Drug Administration (FDA) in October 2003 for the prevention of itching associated with allergic conjunctivitis. Inspire has the primary responsibility for selling, promotional and marketing activities of ELESTAT in the U.S. and is responsible for the associated costs. Inspire works with Allergan collaboratively on overall product strategy and management in the United States. Allergan records sales of ELESTAT and remains responsible for all other product costs, as well as retaining responsibility for all international marketing and selling activities. Allergan is responsible for supply chain management, managed healthcare, customer order processing and regulatory compliance. Under the terms of the agreement, Inspire paid Allergan an up-front payment and Allergan pays co-promotion revenue to Inspire on U.S. net sales of ELESTAT.

In October 2002, Inspire entered into a study funding agreement with the CFFT, a non-profit drug development affiliate of the Cystic Fibrosis Foundation, for the funding of one Phase 2 clinical trial of denufosol tetrasodium for the treatment of cystic fibrosis. Under the agreement, the CFFT provided the majority of funding of external costs for one Phase 2 clinical trial of denufosol in exchange for post-commercialization development and sales milestone payments.

In February 2007, Inspire entered into an exclusive licensing agreement with InSite Vision Incorporated for the U.S. and Canadian commercialization of AZASITE^® (azithromycin ophthalmic solution) 1%, a topical anti-infective product for the treatment of bacterial conjunctivitis. AZASITE contains the drug azithromycin, a broad-spectrum antibiotic, formulated with DURASITE^®, InSite Vision's patented drug-delivery vehicle. AZASITE was approved by the FDA for the treatment of bacterial conjunctivitis in April 2007.

Inspire paid InSite Vision an upfront license fee of $13 million and an additional $19 million milestone payment that was contingent upon FDA approval. Inspire will pay a royalty on net sales of AZASITE for ocular infections in the U.S. and Canada. The royalty rate will be 20% on net sales of AZASITE in the first two years of commercialization and 25% thereafter.

Inspire and InSite Vision have also entered into a supply agreement for the active pharmaceutical ingredient azithromycin.

Important Safety Information: AZASITE should not be injected subconjunctivally or introduced directly into the anterior chamber of the eye or otherwise administered systemically. In clinical trials, the most common ocular adverse event was eye irritation, which occurred in 1% to 2% of patients.

Please see full Prescribing Information for AZASITE.

In December 1998, Inspire entered into a Development, License and Supply Agreement with Santen for the development of diquafosol tetrasodium for the therapeutic treatment of ocular surface diseases, such as dry eye disease, in Asia. Under the agreement, Inspire granted Santen an exclusive license to market diquafosol for ocular surface diseases in Japan, China, South Korea, the Philippines, Thailand, Vietnam, Taiwan, Singapore, Malaysia and Indonesia.

In November 2004, Inspire licensed several patents for use in developing and commercializing new treatments for glaucoma from WARF.