8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) September 22, 2009

INSPIRE PHARMACEUTICALS, INC.

(Exact Name of Registrant as Specified in its charter)

Delaware	000-31135	04-3209022
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

4222 Emperor Boulevard, Suite 200, Durham, North Carolina	27703-8466
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (919) 941-9777

(Former Name or Former Address, if Changed Since Last Report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure

On September 22, 2009, Inspire Pharmaceuticals, Inc. (the “Company”) will make a presentation at the UBS Global Life Science Conference in New York, New York. The full presentation is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The furnishing of the attached information is not an admission as to the materiality of any information set forth therein.

The information in this Form 8-K and the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

No.	Description
99.1	Presentation made on September 22, 2009 at the UBS Global Life Science Conference in New York, New York.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Inspire Pharmaceuticals, Inc.
By:	/s/ Christy L. Shaffer
	Christy L. Shaffer, Ph.D.,
	President and Chief Executive Officer

Dated: September 22, 2009

EXHIBIT INDEX

No.	Description
99.1	Presentation made on September 22, 2009 at the UBS Global Life Science Conference in New York, New York.

EX-99.1

UBS Global

Life Sciences

Conference

September 22, 2009

Exhibit 99.1

2

Forward-Looking

Statements

This presentation contains forward-looking statements as defined by the Private

Securities Litigation Reform Act of 1995, which convey management's expectations,

beliefs, plans and objectives regarding future performance. These statements discuss

matters that are not facts, and may include words to indicate their uncertain nature

such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," and

“target."  Forward-looking statements are subject to significant risks and uncertainties

that could affect such future performance including those relating to product

development, revenue, expense and earnings expectations, intellectual property rights,

adverse litigation developments, competitive products, results and timing of clinical

trials, success of marketing efforts, the need for additional research and testing, delays

in manufacturing, funding, and the timing and content of decisions made by regulatory

authorities, including the U.S. Food and Drug Administration. Actual results could differ

materially from those described in this presentation. Information on various factors that

could affect the information contained in this presentation and Inspire’s performance

are detailed in the reports we file with the SEC. 

3

Robust Pipeline with Multiple Catalysts

*

Received two approvable letters from FDA

**

Currently approved for the treatment of bacterial conjunctivitis

***

Inspire 2009 guidance reaffirmed on 07/31/09

Innovative

Late-Stage

Pipeline

Extensive

Intellectual

Property

R&D and

Commercial

Capabilities

$80-90 mm

Revenue

Stream***

Core

Technology

P2Y 

receptor

platform;

role

in

the

treatment of airway and ocular disease

Over 80 U.S. patents

Focused on two

therapeutic areas:

ophthalmology and

pulmonology

Multiple Novel Programs

Denufosol for cystic

fibrosis in Phase 3

Prolacria

for

dry

eye in Phase 3*

for blepharitis

in Phase 2**

Three Ophthalmology Products

for bacterial

conjunctivitis

for prevention of itching

associated with allergic conjunctivitis

for dry eye

TM

2

4

Novel Clinical Pipeline

*

NDA filed and received two approvable letters from FDA

**

Currently approved for the treatment of bacterial conjunctivitis

Pre-Clinical

Phase 1

Phase 2

Phase 3

Prolacria

for

dry

eye

*

Denufosol for cystic fibrosis

AzaSite

for

blepharitis

**

INS115644 for glaucoma

INS117548 for glaucoma

TM

®

5

Cystic Fibrosis: Life

Threatening

and Underserved

CF is caused by a genetic mutation that disrupts the CFTR

protein, an ion channel, and leads to poorly hydrated lungs

and severely impaired mucociliary clearance

~30,000 U.S. patients; 70,000 worldwide*

Life expectancy: ~37 yrs*

Mean FEV

1

% predicted is 75.9*

55% of CF population is less than 18 years old*

90% of CF patients die of respiratory failure

*

Cystic Fibrosis Foundation Patient Registry 2007 Annual Data Report

**

All information is for 12 months ended 12/31/08; Source: IMS

Disease Quick Facts

Current CF Lung Disease Treatment Options

TOBI

-

inhaled

antibiotic

for

Pseudomonas

aeruginosa

-

$238 mm in U.S. sales**

Pulmozyme

-

inhaled

enzyme

that

thins

and

loosens

mucus

-

$302 mm in U.S. sales**

Chest physiotherapy

No existing approved drug targets CF ion channel defect

Denufosol is latest stage ion channel modulator in development

and is not limited to a specific genetic mutation

®

®

6

Denufosol’s Mechanism of Action Restores Mucosal

Hydration and Mucociliary Clearance in CF

CFTR

Defect

Inefficient

Ion

Transport

Thickened

Airway

Secretions

Bacterial

Colonization

Irreversible

Inflammation

Lung

Structural

Damage

Gene Therapy,

Potentiator/

Corrector

Ion Transport

Restoration

denufosol

Mucus

Regulation

Antibiotic

Anti-

inflammatory

Lung

Transplant

P2Y

2

Receptor Activation

chloride ion and fluid secretion

sodium absorption

cilia beat frequency

mucin secretion from goblet cells

surfactant release from type II alveolar cells

7

Global Phase 3 Program with Denufosol for CF

Two Phase 3 pivotal trials: TIGER-1 and TIGER-2

TIGER-1 met primary efficacy endpoint in 24-week placebo-controlled portion

Showed increasing lung function in open-label 24-week safety extension

TIGER-2 initiated in February 2008 with enrollment expected to be complete in 2009

Histopathology results from two-year carcinogenicity study in rodents indicated

no evidence of carcinogenic effect

U.S. and European Orphan Drug Status and U.S. Fast Track Designation

IP coverage through at least 2017

Inspire owns worldwide rights for denufosol; seeking ex-North American partner

O

O

4 Na

+

O

OH

O

P

-

O

P

O

-

O

O

P

O

O

O

-

P

O

O

-

O

N

HN

N

O

O

OH

OH

O

N

O

NH

2

8

Mean (SE) Change in FEV

1

(mL)

Primary Efficacy Results from TIGER-1:

Placebo-Controlled (ITT)

Enrolled 352 patients with

early stage CF lung disease

(FEV

1

75% predicted normal)

and 

5

years old

Met primary efficacy endpoint:

change in FEV

1

from baseline

to endpoint*

45 mL

treatment effect

(p = 0.047)

“Real world”

design

Broader population

Patients on multiple therapies

that improve FEV

1

3

48

0

10

20

30

40

50

60

70

Placebo

Denufosol

*Endpoint is the Week 24 value or the last observation carried forward for patients who withdrew early.

# Values displayed are adjusted means from the pre-specified analysis of covariance model that included

baseline FEV1

as a covariate.

9

Mean

Change

from

Baseline

FEV

1

CFB=Change from Baseline

ITT Population

# Values displayed are mean observed values at each time point without adjustment for discontinuations or covariates.

Mean (SE) Change from Baseline FEV

1

(mL)

140

-40

-20

0

20

40

60

80

100

120

0

4

12

24

28

36

48

Treatment Week

Placebo

Denufosol

10

Mean

Change

from

Baseline

FEV

1

CFB=Change from Baseline

ITT Population

# Values displayed are mean observed values at each time point without adjustment for discontinuations or covariates.

Mean (SE) Change from Baseline FEV

1

(mL)

140

-40

-20

0

20

40

60

80

100

120

0

4

12

24

28

36

48

Treatment Week

Placebo

Denufosol

Denufosol-only, Open-label Phase

11

Mean (SE) Change from Baseline FEV

1

(mL)

Mean

Change

from

Baseline

FEV

1

CFB=Change from Baseline

ITT Population

# Values displayed are mean observed values at each time point without adjustment for discontinuations or covariates.

140

-40

-20

0

20

40

60

80

100

120

0

4

12

24

28

36

48

Treatment Week

Placebo

Denufosol

Placebo Switched to Denufosol

Denufosol-only, Open-label Phase

12

TIGER-2 Phase 3 Clinical Trial (08-110)

350 patients enrolled as of July 24, 2009

Patients who complete TIGER-2 will be eligible for open-label, denufosol 48-week trial

Expect to complete enrollment by end of year 2009

FEV

1

75% and

110%

predicted normal for age,

gender and height

Age 5 or older

Key Inclusion Criteria

Participated in TIGER-1

Standard CF meds allowed,

except hypertonic saline

Key Exclusion Criteria

Planned Trial Size: 450

Change in FEV

1

in liters at

48-week endpoint

Primary Endpoint

Pulmonary exacerbation,

antibiotic use, incidence of

hospitalization/ER visits,

health resource utilization,

quality of life

Secondary Endpoint

Denufosol 60 mg

TID

N = 225

Placebo

TID

N = 225

R

A

N

D

O

M

I

Z

A

T

I

O

N

48-week Treatment Period

13

TM

Dry Eye: Affects More Than

30 Million Patients Worldwide

*Market

Scope

Report

on

the

Dry

Eye

Market,

July

2004;

**Inspire

estimate

based

on

extrapolation

of

U.S.

Data

***Allergan 2008 financial results on 02/04/09

Caused by environmental or genetic factors, aging/menopause,

immune/inflammatory disease, lid margin disease, certain

medications

Disease of the tears and ocular surface that leads to instability

of the tear film, symptoms of discomfort and visual disturbance

and, if left untreated, can result in damage to the ocular surface

and visual impairment

Characterized by decrease in tear production and/or imbalance in

the composition of the tear film components

Inspire estimates 9 mm patients in North America*, 30 mm patients

worldwide**

Disease Quick Facts

Current Treatment Options

Limited treatment options, which include artificial tears/lubricant

drops and punctal plugs and one prescription product in the U.S.

Worldwide artificial tear sales over $1 billion***

Restasis

®

–

prescription

eye

drop

to

help

increase

tear

production

reduced

by

inflammation

–

$444

mm

in

2008

sales***

Since

Prolacria

and

Restasis

have

different

mechanisms

of

action, they may be complementary products with commercial

opportunity for both

14

Prolacria

:

Mechanism

of

Action

for

Dry

Eye

Internally developed

P2Y

2

agonist

Receptor activation

results in increased

intracellular calcium

concentration, which

triggers a series of

intracellular events

resulting in mucosal

surface secretion

Promotes release of

components of natural

tear-film (fluid, mucin

and lipids)

Lipid

secretion

Mucin,

aqueous

& lipid

layers

Water

& mucin

secretion

Mucin

secretion

Prolacria™

is the proposed U.S. trade name for diquafosol tetrasodium ophthalmic solution 2%

TM

15

Phase 3 Program with Prolacria™

for Dry Eye

O

O

4 Na

+

O

OH

OH

O

P

-

O

P

O

-

O

O

P

O

O

O

-

P

O

O

-

O

N

HN

N

O

O

OH

OH

O

HN

O

O

Four Phase 3 clinical trials conducted to date

Tolerability and safety profile similar to placebo

Received two approvable letters from U.S. FDA

Initiated additional Phase 3 trial under SPA agreement in January 2009

IP coverage through at least 2017

16

Clearing of Central Corneal Staining

Proportion of all patients, regardless of baseline staining, that achieved

clearing of central corneal staining (NEI score of 0) at Week 6 Endpoint in

the Phase 3 environmental trials (Intent-to-Treat Population)

Post-hoc analysis shows statistically significant differences in central

corneal clearing scores shown for Prolacria

treatment vs. placebo in two

Phase 3 environmental trials (03-105 and 03-109)

Post-hoc analysis based on Week 6 value or last observation carried forward for patients who withdrew early.

P-value is from a Pearson Chi-Square Test using each patient’s study eye.

Brazzell R.K., et al., ARVO, 2007; Tauber J., et al., Cornea, 2004

0.526

0.150

94/180

(52%)

38/186

(20%)

85/174

(49%)

47/175

(27%)

<0.001

209/318

(66%)   

164/322

(51%)

0.029

89/175

(51%)

67/171

(39%)

Week 6

Endpoint

0.593

114/318

(36%)

122/322

(38%)

0.358

32/175

(18%)

25/171

(15%)

Baseline

Placebo

N=175

Prolacria

N=186

p-value

Placebo

N=171

Prolacria

N=175

p-value

Placebo

N=322

Prolacria

N=318

p-value

03-104

03-105

03-109

17

Clearing of Central Corneal Staining in Patients

With Baseline Central Corneal Staining Score of 3

0.109

0.320

>0.999

0/24

(0%)

0/17

(0%)

0/7

(0%)

3/23

(13%)

03-104 + 03-105

1/8

(13%)

03-105

2/15

(13%)

03-104

Study

Prolacria

Placebo

p-value

Proportion of patients with a baseline NEI staining score of 3 in the central cornea

that

achieved

clearing

of

central

corneal

staining

(NEI

staining

score

of

0)

at

Week

6

Endpoint in the Phase 3 environmental trials (Intent-to-Treat Population)

Post-hoc analysis based on Week 6 value or last observation carried forward for patients who withdrew early.

P-value is from a Fisher’s Exact Test using each patient’s study eye.

There were no patients with a central corneal staining score of 3 at baseline in Trial 03-109, as per the protocol inclusion/exclusion criteria.

Post-hoc analysis shows trend in favor of Prolacria; not statistically

significant due to small patient sample size; individual trials not

designed for this endpoint

18

Prolacria

™

Phase 3 Environmental Clinical Trial

(03-113)

1-week Placebo Run-in Period

6-week Treatment Period

Planned Trial Size: 450

Corneal fluorescein staining

score of 3 in the central

region of the subject’s study

eye using the NEI scale

Key Inclusion Criteria

Prolacria

(diquafosol tetrasodium

ophthalmic solution 2%)

QID

N = 225

Placebo

QID

N = 225

R

A

N

D

O

M

I

Z

A

T

I

O

N

Proportion of subjects

receiving Prolacria that

achieve clearing of

fluorescein staining of the

central region of the cornea

(a score of zero on the NEI

scale) at the six-week trial

endpoint, compared to those

receiving placebo

Primary Endpoint

345 patients enrolled as of July 24, 2009

Expect to complete enrollment in Fall 2009

19

Global Partnerships for Prolacria™/DE-089

Partnered with Allergan, Inc., a leading global ophthalmic company

Inspire

responsible

for

development

and

approval

of

Prolacria™

in

the

United States, with right to co-promote

Allergan responsible for commercialization and all post-marketing activities

in the U.S., and development and commercialization in rest of world, except

Asia

Partnered with Santen Pharmaceutical Co., a premier ophthalmic

company with 80% market share in dry eye in Japan

Santen responsible for development and commercialization of diquafosol

(DE-089) in Japan and nine other Asian countries

Santen filed regulatory application for DE-089 in Japan in May 2008

Meaningful royalty stream for Inspire, if product is approved and launched

20

AzaSite

®

:

Differentiated Ocular Anti-Infective

First ocular form of azithromycin

AzaSite

combines well-known, broad spectrum

macrolide

antibiotic,

azithromycin

(1%),

with

DuraSite

®

drug delivery technology

Anti-inflammatory properties

Approved by FDA in April 2007, with indication

for treatment of bacterial conjunctivitis

IP coverage through 2019

Broad spectrum coverage against most

common pathogens

High tissue concentration on ocular surface

and eyelids

Easiest dosing regimen among all ocular

anti-infectives (9 vs. 21+ drops)

21

Recent Development in Ocular Antibiotic Market

Current manufacturing supply shortage of

erythromycin ophthalmic ointment

Generic macrolide

antibiotic routinely used in neonates

for prophylaxis of ophthalmia

neonatorum, a form of

bacterial conjunctivitis that may be contracted by

newborns during delivery

CDC, FDA and AAO have provided guidance to

healthcare professionals in dealing with shortage

Reserve current supplies of erythromycin ophthalmic

ointment for neonatal prophylaxis use

Use alternative drugs for treatment of superficial

ocular infections

AzaSite

is an acceptable substitute for neonatal

prophylaxis use where erythromycin ophthalmic

ointment is not available

Increased

production

of

AzaSite

in

September

2009

to fill treatment gap as needed

CDC made the

following

recommendation: 

"Our experts

indicate that

AzaSite

®

(Azithromycin

Ophthalmic Solution

1%, Inspire

Pharmaceuticals) is

an acceptable

substitute, if

Erythromycin

Ophthalmic

Ointment (0.5%) is

not available".*

*AzaSite

has

not

been

approved

by

the

FDA

for

the

treatment

of

prophylaxis

of

ophthalmia

neonatorum

and

no

clinical

trials

have

been

conducted

using

AzaSite

in

this

population.

22

Blepharitis: A New Potential Indication

Common condition characterized by inflammation of the eyelids,

which is often secondary to infection

Often involves significant patient discomfort leading to associated

ocular

surface

inflammation,

chronic

ocular

irritation,

unstable

tear

film and damage to the ocular surface

Blepharitis is an under-diagnosed and under-treated condition,

which may be as prevalent as dry eye disease

Survey data indicates that ophthalmologists and optometrists report

that blepharitis is commonly seen in clinical practice in 37% and 47%

of their patients, respectively*

In a survey of 5,000 adults in the U.S., app. 15% reported having one

to three symptoms of blepharitis at least half of the time in the past 12

months, implying as many as 34 million adults might suffer from some

form of blepharitis (based on overall U.S. adult population data)*

Disease Quick Facts

Current Blepharitis Treatment Options

No prescription products indicated for blepharitis

Limited treatment options at present

Warm compresses

Lid hygiene

Topical antibiotic ointments 

Topical steroids or oral antibiotics, when condition exacerbated

*

The Ocular Surface,

May 2009

23

0.0

1.0

2.0

3.0

4.0

Baseline

After 2 Weeks of

Treatment

Warm Compresses

(WC)

AzaSite + WC

Two-Week Phase 4 Trial in Posterior Blepharitis:

Effect on Lid Margin Hyperemia

p < 0.001

69% Improvement in Mean from Baseline with AzaSite

vs. 10% with WC Alone (n=21)

Luchs J, Adv Ther, Sept 25 (9):858-870, 2008

(0)  Normal: no redness

(3)  Severe: increased vascularity of the eyelid margin

(1)  Mild: slightly dilated blood vessels

(4)  Very severe: clearly increased vascularity of the eyelid margin

(2)  Moderate: more apparent dilation of blood vessels

®

24

Four-Week Phase 4 Trial in

Anterior/Posterior Blepharitis

*p

value listed is for the comparison to baseline for each visit (n=26)

Shapiro A., et al., American Society of Cataract and Refractive Surgery (ASCRS) Annual Meeting 2009.

4 Wks After

Dosing

Stopped*

2 Wks After

Dosing

Stopped*

After 4 Wks

Dosing*

Baseline

AzaSite

®

1.6

p=0.037

1.3

p<0.001

1.3

p<0.001

2.2

Ocular Dryness

0.8

p<0.001

0.5

p<0.001

0.6

p<0.001

2.8

Swollen/Heavy Eyelids

0.3

p<0.001

0.2

p<0.001

0.4

p<0.001

1.7

Ocular Burning

0.8

p<0.001

0.9

p<0.001

0.7

p<0.001

2.2

Foreign Body Sensation

0.6

p<0.001

1.1

p<0.001

0.9

p<0.001

2.2

Eyelid Itching

25

AzaSite

Phase 2 for Blepharitis Clinical Trials

(044-101 and 044-102)

6-week Optional Washout Period

2 or 4-week Treatment Period

Two trials initiated in May 2009 with a two week treatment period (044-101) or four weeks (044-102)      

90 patients enrolled in Trial 044-101 as of July 24, 2009

130 patients enrolled in Trial 044-102 as of July 24, 2009

Planned Trial Size: 300

Have current diagnosis

of blepharitis in one or

both eyes

Key Inclusion Criteria

AzaSite

(azithromycin ophthalmic

solution) 1%

1 drop BID for 2 days, then

1 drop QD for remainder

N = 150

Placebo

1 drop BID for 2 days, then

1 drop QD for remainder

N = 150

R

A

N

D

O

M

I

Z

A

T

I

O

N

Signs and symptoms of

blepharitis

Safety and tolerability

Endpoints

2 or 4-week Follow-up Period

®

26

Glaucoma: Largest Ophthalmic Market

*

Glaucoma Research Foundation

**

IMS for the 12 months ended 12/31/08

Glaucoma is the leading cause of blindness in the world and

the leading cause of preventable blindness in the U.S., according

to the World Health Organization

Glaucoma is a group of eye diseases that gradually reduces

the field of vision

A variety of factors cause loss of retinal ganglion cells leading

to permanent damage to the optic nerve

Associated with increased intraocular pressure (IOP)

65 mm worldwide, 4 mm in the U.S.*

Disease Quick Facts

Current Treatment Options

Agents that reduce IOP: Beta blockers, prostaglandin F2

analogues, carbonic anhydrase inhibitors, alpha-2 adrenoreceptor

agonists, combination agents

No existing approved drug targets the primary outflow pathway

Largest market in ophthalmic pharmaceuticals: $2.1 billion

in U.S. prescription sales**

27

Glaucoma Program Update

Novel approach to lowering intraocular pressure (IOP) by targeting primary

outflow

pathway

(trabecular

meshwork)

Top-line Phase 1 clinical trial results in patients with elevated IOP

INS115644 (Latrunculin B) –

observed dose-dependant IOP-lowering effects

in 56 randomized subjects; compound was generally well tolerated

INS117548 (Rho kinase inhibitor) –

observed mild IOP-lowering effects in 84

randomized subjects; tolerability issues (ocular discomfort) with this molecule

Targeting potential presentation of key Phase 1 data at 2010 medical

conferences

Evaluating

next

steps

for

overall

program,

based

on

clinical

and

preclinical

data, expert opinions and resource availability

28

Financing Summary

Raised $115 million in common stock offering in

August 2009

Financing fully funds current strategic plan

Provides strong foundation to advance Company

to the next level

Enables a rapid succession of multiple catalysts

Top-line clinical results in four programs within two years

Three potential regulatory filings toward product approval

29

Current Financial Summary

~ $150 MM pro forma cash and investments balance, based on 6/30/09

balance plus $109 MM net proceeds from recent common stock offering

82.3 million common shares outstanding after common stock offering

2009 guidance reaffirmed on 07/31/09

Expenses -

$120-135 mm

Revenue -

$80-90 mm

M&S

$45 -

50 mm

R&D

$50-

60 mm

COGS

$8-13

mm

G&A

$14 -

18 mm

30

2004

2005

2006

2007

2008

2009

Guidance

Inspire Has Achieved Double-Digit Annual Growth Each Year

Growing Stream of Revenues

Inspire Receives Revenues from Three Products*

($ Millions)

$23

$49

$11

$37

$80-90**

$71

31% increase

110% increase

59% increase

45% increase

*   Inspire receives revenues related to the promotion of AzaSite, co-promotion of Elestat and royalties on Restasis 

           **   Guidance reaffirmed on 07/31/09

31

Denufosol

for

Cystic

Fibrosis

–

Phase

3

Complete enrollment in TIGER-2 CF trial (year-end 2009)

Report top-line results of TIGER-2 CF trial

Identify ex-North American partner for denufosol

Prolacria

for

Dry

Eye

–

Phase

3

Complete

enrollment

in

Prolacria

dry

eye

trial

(Fall

2009)

Report

top-line

results

of

Prolacria

dry

eye

trial

File

NDA

amendment

with

FDA

including

new

Prolacria

trial

data

Potential regulatory approval in Japan

AzaSite

®

for

Blepharitis

–

Phase

2

Complete

enrollment

in

AzaSite

Phase

2

blepharitis

trials

(Q1

2010)

Report

top-line

results

of

AzaSite

Phase

2

blepharitis

trials

Initiate

Phase

3

trials

of

AzaSite

for

blepharitis,

if

Phase

2

is

positive

Multiple Significant Events Over the Next Two Years

TM

32

Inspire Summary

Vision to build long-term value

Therapeutically focused with unique, innovative

pipeline and products

Recent financing fully funds current strategic plan

and provides strong foundation for future growth

Multiple upcoming catalysts

Top-line clinical results in four programs within two years

Three potential regulatory filings toward product approval

UBS Global

Life Sciences

Conference

September 22, 2009