Inspire Pharmaceuticals, Inc.

Inspire employs a U.S. sales force for the promotion of AzaSite^® for bacterial conjunctivitis, Elestat^® for allergic conjunctivitis and Restasis^® for dry eye. Inspire licensed AzaSite from InSite Vision Incorporated. Elestat and Restasis are co-promoted under agreements with Allergan, Inc.

AzaSite^®
AzaSite^® (azithromycin ophthalmic solution) 1% achieves and maintains significant antibiotic concentrations in the eyelids,² conjunctiva¹ and cornea² over extended periods of time (based on human¹ and rabbit² data), due to its unique combination of the antibiotic azithromycin delivered with DuraSite^® technology. The significant ocular tissue concentrations of azithromycin allows for broad spectrum coverage with only 1 to 2 drops per 24-hour period, offering the most convenient dosing of any ocular anti-infective drop indicated for the treatment of bacterial conjunctivitis.^3,4,5 AzaSite's regimen requires only once daily dosing after initial loading dose, and it is safe and effective in adults and children as young as one year.

Market Opportunity
The current single-entity ocular antibiotic market was approximately $391 million in annual sales in the United States based on data compiled by IMS data for the 12 months ended December 31, 2007.

Elestat^®
Elestat^® (epinastine HCl ophthalmic solution) 0.05% provides fast-acting, long-lasting relief of ocular itching and is soothing to the eyes. Elestat is a mast cell stabilizer, a potent antihistamine and the only product with labeling that cites activity at both the H1 and H2 receptors.

Market Opportunity
Allergies affect more than 40 million people in the U.S. annually, according to the American Academy of Allergy, Asthma & Immunology. The annual U.S. market for prescription ocular allergy products is approximately $515 million, based on IMS data for the 12 months ended December 31, 2007.

Restasis^®
Restasis^® (cyclosporine ophthalmic emulsion) 0.05% is the only approved prescription product in the United States for dry eye disease, a painful and irritating condition that can be caused by various factors including eye stress, aging, environmental factors, autoimmune disorders and various medications. Restasis increases tear production in patients with keratoconjunctivitis sicca, or dry eye disease, whose tear production is presumed to be suppressed due to ocular inflammation.

Market Opportunity
We estimate, based on an extrapolation from U.S. data, that dry eye disease affects approximately 30 million people in the eight major international prescription pharmaceutical markets, of which over nine million are in North America.

1 Data on file, Inspire Pharmaceuticals, Inc.; 2008.
2 Data on file. Inspire Pharmaceuticals, Inc., Study Report I04U0207.
3 Vigamox® [package insert]. Fort Worth, TX: Alcon Laboratories, Inc; 2006.
4 Tobrex® [package insert]. Fort Worth, TX: Alcon Laboratories, Inc; 2003.
5 Zymar® [package insert]. Irvine, CA: Allergan Inc; 2004

Page last updated: 06-May-2008