(tobramycin and prednisolone acetate combination product)

T-PRED is a proprietary formulation of a fixed combination product of tobramycin 0.3% and prednisolone acetate 1.0%. T-PRED is being developed for the treatment of steroid responsive inflammation and allergic conjunctivitis. We plan to initiate Phase 3 studies in 2012 or later.

T-PRED, if approved by the FDA, will compete in the antibiotic/steroid combination segment of the U.S. topical ophthalmic anti-inflammatory market. Based upon management estimates and 2010 prescription data compiled by IMS Health, we estimate that 2010 sales in the U.S. topical ophthalmic anti-inflammatory market were approximately $848 million, with total prescriptions of 11.5 million. In 2010, the combination antibiotic and steroid segment of the ophthalmic anti-inflammatory market had approximately a 36% share of the prescriptions or $302 million in prescription dollars and about 4 million prescriptions according to data compiled by IMS Health.