Insite Vision Inc

Insite Vision Inc. announced that it has closed a private placement to institutional investors of $60 million in aggregate principal amount of non-convertible, non-recourse promissory notes. The notes are secured by royalties to be paid from sales in the United States and Canada of AzaSite(R) (azithromycin ophthalmic solution) 1%, a drug licensed to and sold by Inspire Pharmaceuticals for the topical treatment of bacterial conjunctivitis (pink eye). InSite Vision intends to use the proceeds of the placement to fund the advancement of its pipeline products, including AzaSite Plus(TM), AzaSite Otic(TM) and AzaSite Xtra(TM), for general corporate purposes, as well as to potentially acquire complementary businesses, products, technologies or other assets, although InSite has no current agreements or commitments with respect to any acquisitions.