Strong Steroid Product

We are developing a proprietary formulation of a strong steroid for the treatment of ocular inflammation. No new strong steroid products have been launched in the United States for ophthalmic applications in more than a decade. We believe our strong steroid product will be considered a new chemical entity and entitled to receive five-year new chemical entity market exclusivity pursuant to the federal Food, Drug and Cosmetic Act. During the first half of 2007, we plan to begin a pilot study in humans of our strong steroid product. Assuming timely and successful completion of this pilot study, we anticipate that Phase II/III studies of our strong steroid product could begin during the latter part of 2007.