In the ISTA ophthalmic solution development program, we are developing a proprietary nasal formulation of bepotastine for the treatment of allergic rhinitis. In September 2007, we obtained exclusive North American rights to nasal dosage forms of bepotastine, an investigational product for the treatment of allergy symptoms, from Mitsubishi Tanabe Pharma Corporation (formerly Tanabe Seiyaku Co., Ltd.). Based upon 2009 data from IMS, we estimate the U.S. allergic rhinitis market to be approximately $2.2 billion in sales, with the nasal antihistamine component comprising about 12% of all prescriptions.

Bepotastine nasal is currently in formulation development, with animal studies planned in 2010. We also plan to initiate human clinical studies during 2010.