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): November 1, 2017

ALIMERA SCIENCES, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-34703		20-0028718
(State or other Jurisdiction of Incorporation)	(Commission File Number)		(IRS Employer Identification No.)
6120 Windward Parkway Suite 290 Alpharetta, Georgia		30005
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (678) 990-5740

Not Applicable

(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:

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

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

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

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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02. Results of Operations and Financial Condition.

On November 1, 2017, Alimera Sciences, Inc. (“Alimera”) issued a press release regarding its results of operations and financial condition for the third quarter ended September 30, 2017. Alimera will be hosting a conference call, as well as a live webcast on the Investor Relations section of its corporate website at www.alimerasciences.com, on November 2, 2017 at 9:00 A.M. ET to discuss its third quarter ended September 30, 2017 financial results and to provide regulatory and commercial updates. The full text of the press release, which includes information regarding Alimera’s use of non-GAAP financial measures, is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Various statements to be made during the conference call and webcast, including the slide deck presentation discussed in Item 7.01 of this Current Report on Form 8-K, are “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, regarding, among other things, the opportunity for further growth in 2017 for ILUVIEN, and the ability of Alimera to achieve positive operating cash flow. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “contemplate,” “predict,” “project,” “target,” “likely,” “potential,” “continue,” “ongoing,” “will,” “would,” “should,” “could,” or the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual results to differ materially from those projected in its forward-looking statements. Meaningful factors which could cause actual results to differ include, but are not limited to, continued market acceptance of ILUVIEN in the U.S. and Europe, including physicians’ ability to obtain reimbursement, as well as other factors discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Alimera’s Annual Report on Form 10-K for the year ended December 31, 2016 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, which are on file with the Securities and Exchange Commission (“SEC”) and available free of charge on the SEC’s website at www.sec.gov. Additional factors may also be set forth in those sections of Alimera’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, to be filed with the SEC in the fourth quarter of 2017. In addition to the risks described above and in Alimera’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the SEC, other unknown or unpredictable factors also could affect Alimera’s results. There can be no assurance that the actual results or developments anticipated by Alimera will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Alimera. Therefore, no assurance can be given that the outcomes stated in such forward-looking statements and estimates will be achieved.

All forward-looking statements made during the conference call and webcast are expressly qualified by the cautionary statements contained or referred to herein. Alimera cautions investors not to rely too heavily on the forward-looking statements Alimera makes or that are made on its behalf. These forward-looking statements speak only as of the date on which they are made (unless another date is indicated). Alimera undertakes no obligation, and specifically declines any obligation, to publicly update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

The information in Item 2.02 of this Current Report on Form 8-K and the press release furnished as Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (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, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 7.01. Regulation FD.

Alimera is furnishing under this Item 7.01 a copy of a slide deck presentation which will be available November 2, 2017 on Alimera’s earnings webcast for the third quarter ended September 30, 2017. The presentation is incorporated by reference herein. Certain financial information relating to completed fiscal periods that will be part of the earnings webcast is included in the presentation that will accompany the earnings webcast, a copy of which is attached hereto as Exhibit 99.2. The earnings webcast will include certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the comparable measures calculated and presented in accordance with GAAP are included in Alimera’s press release issued November 1, 2017 and attached hereto as Exhibit 99.1.

The information in this Current Report on Form 8-K under Item 7.01, including Exhibit 99.2 attached hereto and incorporated herein, is being “furnished” and not “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under such section. Furthermore, such information shall not be deemed incorporated by reference in any filing under the Securities Act, unless specifically identified as being incorporated therein by reference.

Item 9.01. Financial Statements and Exhibits.

(d)    Exhibits

Exhibit No.	Description
99.1	Press Release of Alimera Sciences, Inc. dated November 1, 2017
99.2	Set of slides that will accompany the November 2, 2017 earnings webcast

SIGNATURE

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

	ALIMERA SCIENCES, INC.
Dated: November 2, 2017	By;	/s/ RICHARD S. EISWIRTH, JR.
	Name:	Richard S. Eiswirth, Jr.
	Title:	President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release of Alimera Sciences, Inc. dated November 1, 2017
99.2	Set of slides that will accompany the November 2, 2017 earnings webcast

EX-99.1

Exhibit 99.1

Alimera Sciences Reports Third Quarter 2017 Financial Results

• Net Revenue of $9.8 million for the third quarter of 2017 compared to $8.3 million for the third quarter of 2016, an 18% increase

• GAAP Net Loss of $5.3 million for the third quarter of 2017 compared to $9.2 million for the third quarter of 2016, a decrease of 42%

• Adjusted EBITDA Loss of $1.8 million for the third quarter of 2017 compared to $5.4 million for the third quarter of 2016, a decrease of 67%

• Company to host conference call on Thursday, November 2, 2017 at 9:00 AM ET

ATLANTA, Nov. 01, 2017 (GLOBENEWSWIRE) -- Alimera Sciences, Inc. (NASDAQ: ALIM) (Alimera), a global pharmaceutical company that specializes in the commercialization and development of prescription ophthalmic pharmaceuticals, today announced financial results for the three months ended September 30, 2017.

“We are pleased to announce an 18% increase in our quarterly net revenues compared to the third quarter of 2016. This increase was driven by growing end user demand for ILUVIEN, as evidenced by record sales in our international segment. We achieved this growth while at the same time reducing operating expenses by 17% and reducing our net loss by 42% in the third quarter of 2017 compared to the third quarter of 2016. We are announcing an adjusted EBITDA loss of $1.8 million in the third quarter of 2017, down from $5.4 million for the third quarter of 2016. We believe the U.S. real-world clinical evidence, recently presented from our USER Study, will allow us to improve the position of ILUVIEN in the marketplace,” said Dan Myers, Chief Executive Officer of Alimera. “The licensing of additional rights from pSivida positions us to pursue potential approval and commercialization of ILUVIEN for the treatment of uveitis in Europe in 2018. Finally, we expect to continue to drive revenue by communicating the new real-world evidence and expanding the reach of ILUVIEN to additional patients in 2018 through our distribution partnerships.”

Third Quarter 2017 Financial Results

Consolidated net revenue increased by approximately $1.5 million, or 18%, to approximately $9.8 million for the three months ended September 30, 2017, compared to net revenue of approximately $8.3 million for the three months ended September 30, 2016. The increase was primarily attributable to increased end user demand in the U.S. and in Europe, as well as the initial shipments of ILUVIEN to Alimera’s distribution partner in Italy.

U.S. net revenue increased by approximately $900,000, or 15%, to approximately $7.1 million for the three months ended September 30, 2017, compared to U.S. net revenue of approximately $6.2 million for the three months ended September 30, 2016. The increase was driven by increased end user demand for ILUVIEN in the U.S. in 2017.

International net revenue increased by approximately $500,000, or 24%, to approximately $2.6 million for the three months ended September 30, 2017, compared to approximately $2.1 million for the three months ended September 30, 2016. The increase was driven by increased sales of ILUVIEN in Germany as well as the initial shipments of ILUVIEN to Alimera’s distribution partner in Italy.

Consolidated gross profit increased by approximately $900,000, or 12%, to approximately $8.7 million for three months ended September 30, 2017, compared to approximately $7.8 million for the three months ended September 30, 2016. Gross margin was 89% and 94% for the three months ended September 30, 2017 and 2016, respectively. The decrease in gross margin for the three months ended September 30, 2017 was primarily a result of royalty payments payable to pSivida accrued in the third quarter of 2017, as a result of the restructuring of Alimera’s collaboration agreement with pSivida.

In July 2017, Alimera acquired the license rights to uveitis from pSivida US, Inc. (pSivida) for Europe, the Middle East and Africa and restructured its collaboration agreement with pSivida. The restructuring included a conversion of Alimera’s obligation to share profits from the commercialization of ILUVIEN to a royalty on net revenue. As consideration for the uveitis rights and the profit share conversion, Alimera agreed to reduce its right to utilize pSivida’s share of previous losses associated with the commercialization of ILUVIEN, which would have been used to partially offset future profit sharing payments under the prior collaboration agreement. This right of offset was not previously reflected on Alimera’s balance sheet due to the uncertainty of future realizability. Alimera valued the transaction utilizing a present value analysis, at approximately $2.9 million. Because there is no approved indication for ILUVIEN for uveitis at this time, Alimera expensed a $2.9 million non-cash charge as in-process Research and Development Expense in the third quarter of 2017. Alimera also recognized a Recovery of Prior Collaboration Losses of $2.9 million for the value of the right of offset as a reduction of operating expenses. As a result, there was no impact on Alimera’s operating loss or net loss for the three months ended September 30, 2017.

Consolidated operating expenses decreased by approximately $2.5 million, or 17%, to approximately $12.6 million for the three months ended September 30, 2017, compared to $15.1 million for the three months ended September 30, 2016.

Consolidated research, development and medical affairs expenses increased by approximately $2.1 million for the three months ended September 30, 2017, or 64%, to approximately $5.4 million, compared to $3.3 million for the three months ended September 30, 2016. This increase was due to the non-cash charge of $2.9 million incurred for in-process research and development in conjunction with the pSivida transaction in July 2017, offset by an approximately $700,000 reduction attributable to cost saving plans implemented by Alimera in late 2016 and early 2017.

Consolidated general and administrative expenses decreased by approximately $300,000 for the three months ended September 30, 2017, or 8%, to approximately $3.3 million, compared to approximately $3.6 million for the three months ended September 30, 2016.

Consolidated sales and marketing expenses decreased by approximately $1.5 million, or 20%, to approximately $6.0 million for the three months ended September 30, 2017, compared to approximately $7.5 million reported for the three months ended September 30, 2016. The decrease was primarily attributable to cost-saving plans implemented by Alimera in late 2016 and early 2017.

Operating loss was approximately $3.8 million for the three months ended September 30, 2017, compared to an operating loss of approximately $7.2 million for the three months ended September 30, 2016, a decrease of 47%.

GAAP net loss was approximately $5.3 million for the three months ended September 30, 2017, compared to GAAP net loss of approximately $9.2 million for the three months ended September 30, 2016, a decrease of 42%.

Non-GAAP Financial Results

Adjusted EBITDA, as defined below, was approximately negative $1.8 million for the three months ended September 30, 2017, compared to Adjusted EBITDA of approximately negative $5.4 million for the three months ended September 30, 2016, a decrease of 67%. This was primarily due to the increase in global revenue and the decrease in operating expenses due to the cost-savings plans Alimera implemented in late 2016 and early 2017.

For purposes of this press release, “Adjusted EBITDA” is adjusted earnings before interest, taxes, depreciation, amortization, non-cash stock-based compensation expenses, and to the extent they are included in the calculation of earnings, net unrealized gains and losses from foreign currency exchange transactions and gains and losses from the change in the fair value of derivative warrant liability. Alimera provides non-GAAP financial information, which it believes can enhance an overall understanding of its financial performance when considered together with GAAP figures. Refer to the sections of this press release entitled “Non-GAAP Financial Information” and “Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures,” which includes Adjusted EBITDA and Adjusted Operating Expenses.

Conference Call

An accompanying conference call will be hosted by Dan Myers, Chief Executive Officer and Rick Eiswirth, President and Chief Financial Officer. The call will be held at 9:00 AM ET, on November 2, 2017. Please refer to the information below for conference call dial-in information and webcast registration.

Conference date: November 2, 2017, 9:00 AM ET

Conference dial-in: 877-269-7756

International dial-in: 201-689-7817

Conference Call Name: Alimera Sciences Third Quarter 2017 Results Call

Webcast Registration: Click Here

Following the live call, a replay will be available on the Company’s website, www.alimerasciences.com, under “Investor Relations”.

Non-GAAP Financial Information

This press release contains a discussion of non-GAAP financial measures, as defined in Regulation G of the Securities Exchange Act of 1934, as amended. Alimera reports its financial results in compliance with GAAP, but believes that the non-GAAP measures of Adjusted EBITDA and Adjusted Operating Expenses will be more relevant measures of Alimera’s operating performance. Alimera uses Adjusted EBITDA and Adjusted Operating Expenses in the management of its business and Alimera’s lender uses Adjusted EBITDA as a financial covenant measurement. Accordingly, Adjusted EBITDA and Adjusted Operating Expenses for the third quarter of 2017 have been presented in certain instances excluding items identified in the reconciliations provided. For a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure, see the tables below.

These non-GAAP financial measures, as presented, may not be comparable to similarly titled measures reported by other companies since not all companies may calculate this measure in an identical manner and, therefore, it is not necessarily an accurate measure of comparison between companies.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for guidance prepared in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant elements that are required by GAAP to be recorded in Alimera’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management in determining these non-GAAP financial measures. In order to compensate for these limitations, Alimera presents its non-GAAP financial results in connection with its GAAP results. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to their most directly comparable GAAP financial measure.

About Alimera Sciences, Inc.

Alimera, founded in June 2003, is a pharmaceutical company that specializes in the commercialization and development of prescription ophthalmic pharmaceuticals. Alimera is presently focused on diseases affecting the back of the eye, or retina, because these diseases are not well treated with current therapies and will affect millions of people in aging populations.

Alimera’s commitment to retina specialists and their patients is manifest in its product and in its development portfolio designed to treat early- and late-stage diseases. For more information, please visit www.alimerasciences.com.

Forward-Looking Statements

This press release contains “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, regarding, among other things, the opportunity for further growth in 2017 for ILUVIEN, the potential approval and commercialization of ILUVIEN for the treatment of uveitis in Europe. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual results to differ materially from those projected in its forward-looking statements. Meaningful factors which could cause actual results to differ include, but are not limited to, continued market acceptance of ILUVIEN in the U.S. and Europe, including physicians’ ability to obtain reimbursement, as well as other factors discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Alimera’s Annual Report on Form 10-K for the year ended December 31, 2016 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, which are on file with the Securities and Exchange Commission (the SEC) and available on the SEC’s website at http://www.sec.gov. Additional factors may be set forth in those sections of Alimera’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, to be filed with the SEC in the fourth quarter of 2017. In addition to the risks described above and in Alimera’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the SEC, other unknown or unpredictable factors also could affect Alimera’s results. There can be no assurance that the actual results or developments anticipated by Alimera will be realized or, even if substantially realized, that they will have the expected consequences to,

or effects on, Alimera. Therefore, no assurance can be given that the outcomes stated in such forward-looking statements and estimates will be achieved. All forward-looking statements contained in this press release are expressly qualified by the cautionary statements contained or referred to herein. Alimera cautions investors not to rely too heavily on the forward-looking statements Alimera makes or that are made on its behalf. These forward-looking statements speak only as of the date of this press release (unless another date is indicated). Alimera undertakes no obligation, and specifically declines any obligation, to publicly update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

ALIMERA SCIENCES, INC.
CONSOLIDATED BALANCE SHEETS
	September 30, 2017			December 31, 2016
	(In thousands)
	(unaudited)
CURRENT ASSETS:
Cash and cash equivalents	$	25,624		$	30,979
Restricted cash	34			31
Accounts receivable, net	13,454			13,839
Prepaid expenses and other current assets	2,752			2,107
Inventory, net	1,738			446
Total current assets	43,602			47,402
NON-CURRENT ASSETS:
Property and equipment, net	1,514			1,787
Intangible asset, net	19,153			20,604
Deferred tax asset, net	489			436
TOTAL ASSETS	$	64,758		$	70,229
CURRENT LIABILITIES:
Accounts payable	$	5,303		$	4,986
Accrued expenses	3,514			3,758
Derivative Warrant liability	—			188
Capital lease obligations	187			191
Total current liabilities	9,004			9,123
NON-CURRENT LIABILITIES:
Note payable, net of discount — less current portion	34,016			33,084
Capital lease obligations - less current portion	199			274
Other non-current liabilities	775			2,162
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Preferred stock
Series A convertible preferred stock	19,227			19,227
Series B convertible preferred stock	49,568			49,568
Common stock	691			649
Additional paid-in capital	340,301			330,781
Common stock warrants	3,707			3,707
Accumulated deficit	(391,851		)	(377,074		)
Accumulated other comprehensive loss	(879		)	(1,272		)
TOTAL STOCKHOLDERS’ EQUITY	20,764			25,586
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	64,758		$	70,229

ALIMERA SCIENCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016
	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(In thousands, except share and per share data, unaudited)
NET REVENUE	$	9,784		$	8,298		$	26,770		$	23,656
COST OF GOOD SOLD, EXCLUDING DEPRECIATION AND AMORTIZATION	(1,039		)	(486		)	(2,395		)	(1,420		)
GROSS PROFIT	8,745			7,812			24,375			22,236
RESEARCH, DEVELOPMENT AND MEDICAL AFFAIRS EXPENSE EXPENSES	5,420			3,261			9,768			9,486
GENERAL AND ADMINISTRATIVE EXPENSES	3,320			3,645			9,596			11,079
SALES AND MARKETING EXPENSES	6,002			7,452			16,564			22,071
DEPRECIATION AND AMORTIZATION	679			697			2,012			2,082
RECOVERABLE COLLABORATION COSTS	(2,851		)	—			(2,851		)	—
OPERATING EXPENSES	12,570			15,055			35,089			44,718
NET LOSS FROM OPERATIONS	(3,825		)	(7,243		)	(10,714		)	(22,482		)
INTEREST EXPENSE, NET AND OTHER	(1,431		)	(1,330		)	(4,152		)	(3,842		)
UNREALIZED FOREIGN CURRENCY LOSS, NET	(6		)	(51		)	(6		)	(31		)
CHANGE IN FAIR VALUE OF DERIVATIVE WARRANT LIABILITY	—			(588		)	188			1,755
LOSS ON EARLY EXTINGUISHMENT OF DEBT	—			—			—			(2,564		)
NET LOSS BEFORE TAXES	(5,262		)	(9,212		)	(14,684		)	(27,164		)
PROVISION FOR TAXES	(23		)	(33		)	(93		)	(84		)
NET LOSS	$	(5,285	)	$	(9,245	)	$	(14,777	)	$	(27,248	)
NET LOSS PER SHARE - Basic and diluted	$	(0.08	)	$	(0.16	)	$	(0.22	)	$	(0.56	)
WEIGHTED AVERAGE SHARES OUTSTANDING - Basic and diluted	68,430,856			56,103,534			66,272,691			48,759,381

RECONCILIATION OF GAAP MEASURES TO NON-GAAP ADJUSTED MEASURES
GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA
	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(in thousands, unaudited)
GAAP NET LOSS	$	(5,285	)	$	(9,245	)	$	(14,777	)	$	(27,248	)
Adjustments to net loss:
Interest Expense, Net and Other	1,431			1,330			4,152			3,842
Depreciation and Amortization	679			697			2,012			2,082
Provision for Taxes	23			33			93			84
Stock-Based Compensation	1,302			1,134			3,703			3,753
Unrealized Foreign Currency Exchange Losses	6			51			6			31
Change in the Fair Value of Derivative Warrant Liability	—			588			(188		)	(1,755		)
NON-GAAP ADJUSTED EBITDA	$	(1,844	)	$	(5,412	)	$	(4,999	)	$	(19,211	)

GAAP OPERATING EXPENSES TO NON-GAAP ADJUSTED OPERATING EXPENSES
	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(in thousands, unaudited)
GAAP OPERATING EXPENSES	$	12,570		$	15,055		$	35,089		$	44,718
Adjustments to Operating Expenses:
Depreciation and Amortization	(679		)	(697		)	(2,012		)	(2,082		)
Stock-Based Compensation	(1,302		)	(1,134		)	(3,703		)	(3,753		)
NON-GAAP ADJUSTED OPERATING EXPENSES	$	10,589		$	13,224		$	29,374		$	38,883

Contact

CG CAPITAL

Rich Cockrell

877.889.1972

investorrelations@cg.capital

EX-99.2

Third Quarter 2017 Results Conference Call Thursday, November 2, 2017 Exhibit 99.2

Safe Harbor Statement This presentation contains “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, regarding, among other things, the opportunity for further growth in 2017 for ILUVIEN and the potential approval and commercialization of ILUVIEN for the treatment of posterior uveitis in Europe. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual results to differ materially from those projected in its forward-looking statements. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “contemplate,” “predict,” “project,” “target,” “likely,” “potential,” “continue,” “ongoing,” “will,” “would,” “should,” “could,” or the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual results to differ materially from those projected in its forward-looking statements. Meaningful factors which could cause actual results to differ include, but are not limited to, continued market acceptance of ILUVIEN in the U.S. and Europe, including physicians' ability to obtain reimbursement, as well as other factors discussed in the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of Alimera's Annual Report on Form 10-K for the year ended December 31, 2016 and for the quarter ended June 30, 2017, which are on file with the Securities and Exchange Commission (SEC) and available on the SEC's website at http://www.sec.gov. Additional factors may also be set forth in those sections of Alimera’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, to be filed with the SEC in the fourth quarter of 2017. In addition to the risks described above and in Alimera's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the SEC, other unknown or unpredictable factors also could affect Alimera's results. There can be no assurance that the actual results or developments anticipated by Alimera will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Alimera. Therefore, no assurance can be given that the outcomes stated in such forward-looking statements and estimates will be achieved. All forward-looking statements contained in this presentation are expressly qualified by the cautionary statements contained or referred to herein. Alimera cautions investors not to rely too heavily on the forward- looking statements Alimera makes or that are made on its behalf. These forward-looking statements speak only as of the date of this presentation (unless another date is indicated). Alimera undertakes no obligation, and specifically declines any obligation, to publicly update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise. 2 © 2017 Alimera Sciences, Inc., All Rights Reserved

$8.3 M $9.8 M 3Q16 3Q17 3 Third Quarter 2017 Highlights Revenue Growth • 18% revenue growth compared to the third quarter of 2016. • Partnership announced in France; first units sold in Italy. • Rights to posterior uveitis secured for ILUVIEN in the EU, Middle East & Africa. 18% © 2017 Alimera Sciences, Inc., All Rights Reserved

USER Study Overview 4 © 2017 Alimera Sciences, Inc., All Rights Reserved Center Patients Treated, n (%) Eyes Treated, n All Centers 130 (100%) 160 Cincinnati Eye 37 (28.5%) 49 Georgia Retina 15 (11.5%) 19 Retina Health Institute 53 (40.8%) 59 Southern Eye 25 (19.2%) 33 Patients must have received ILUVIEN prior to January 1, 2016 for the treatment of DME in at least one eye. Determine correlation in ocular outcomes to DME treatments prior and post ILUVIEN administration Compare number of DME treatments before and after ILUVIEN administration Compare IOP signals associated with ILUVIEN to IOP signals reported in FAME. Objectives

Change in Visual Acuity, Entire Population 5 © 2017 Alimera Sciences, Inc., All Rights Reserved

6 © 2017 Alimera Sciences, Inc., All Rights Reserved Minimal IOP Increase

7 © 2017 Alimera Sciences, Inc., All Rights Reserved IOP Related Events - DME (N eyes = 160) IOP-Related Event Before ILUVIEN Administration After ILUVIEN Administration P-Value N % N % IOP Elevation to over 21 mmHg 61 38.1% 49 30.6% 0.195 IOP Elevation to over 25 mmHg 24 15.0% 24 15.0% 1.000 IOP Elevation to over 30 mmHg 9 5.6% 8 5.0% 1.000 Trabeculoplasty 3 1.9% 2 1.3% 1.000 Trabeculectomy 0 0.0% 0 0.0% NA Incisional IOP-Lowering Surgery 2 1.3% 2 1.3% 1.00 IOP elevation increase of 10 mmHg or more after ILUVIEN NA NA 29 18.1% 1.00

8 © 2017 Alimera Sciences, Inc., All Rights Reserved Expect approval during 2018 and expect to begin marketing ILUVIEN for Posterior Uveitis in 2019 Fluocinolone Acetonide for Non-Infectious Uveitis Affecting The Posterior Segment (NIU-PS) Primary End Point at 6 Months – Reduction in the Recurrence of Uveitis Sham Injection (N = 94) 69 (73.4%) FAc Insert (N = 188) 50 (26.6%) 73.4 % 26.6 % Sham Fluocinolone Acetonide Percentage of Patients with Uveitis Recurrence Pooled Data

IOP-Related Event FAc Insert (N=188) Sham Injection (N=94) N % N % IOP Elevation to over 25 mmHg 36 19.1% 7 (7.4%) IOP Elevation to over 30 mmHg 22 11.7% 3 3.2% IOP-lowering medication 42 22.3% 14 14.9% IOP-lowering Surgery 3 1.6% 2 2.1% Cataract Surgery (N/Phakic) 17/103 16.5% 4/56 7.1% 9 Expect approval during 2018 and expect to begin marketing ILUVIEN for Posterior Uveitis in 2019 IOP Related Events – Posterior Uveitis © 2017 Alimera Sciences, Inc., All Rights Reserved

10 Uveitis Indication for ILUVIEN © 2017 Alimera Sciences, Inc., All Rights Reserved • Announced acquisition of rights for Posterior Uveitis for ILUVIEN in Europe, the Middle East and Africa • Filing for label variation with the MHRA in the 17 EU countries where ILUVIEN is approved in the first quarter of 2018 Expect approval during 2018 and expect to begin marketing ILUVIEN for Posterior Uveitis in 2019 First European Approval Expected 2018 Plan to Begin Marketing Where Approved 2019

Financial Overview Rick Eiswirth, President & CFO

$8.3M $2.1M $6.2M $9.8M $2.6M $7.1M Global Revenue International Revenue U.S. Revenue 12 3Q17 Financial Overview +18% +24% +15% © 2017 Alimera Sciences, Inc., All Rights Reserved 3Q17 3Q16

$15.1M $7.2M $16.9M $12.6M $3.8M $14.6M Operating Expenses GAAP Operating Loss Adjusted Operating Expenses* 13 © 2017 Alimera Sciences, Inc., All Rights Reserved *Please see Non-GAAP financial information on slide 15 of this presentation ($5.4 M) ($1.8 M) Adjusted EBITDA* (17%) (47%) (14%) 3Q17 Financial Overview 3Q17 3Q16

14 Closing Remarks © 2017 Alimera Sciences, Inc., All Rights Reserved • Continue to focus on profitable revenue growth. • USER Study data expected to drive further acceptance of ILUVIEN in the U.S. • Continue to build product pipeline for ILUVIEN with first approvals of posterior uveitis expected during 2018 in Europe.

15 Non-GAAP Financial Information © 2017 Alimera Sciences, Inc., All Rights Reserved Alimera believes that the non-GAAP financial information provided in this presentation can assist investors in the overall understanding of its financial performance when considered together with GAAP figures. This presentation contains a discussion of certain non-GAAP financial measures, as defined in Regulation G of the Securities Exchange Act of 1934, as amended. Alimera reports its financial results in compliance with GAAP, but believes that the non-GAAP measures of Adjusted EBITDA and Adjusted Operating Expenses will be a more relevant measure of Alimera's operating performance. For the purpose of this presentation, “Adjusted EBITDA” is adjusted earnings before interest, taxes, depreciation, amortization, non-cash stock-based compensation expense, and to the extent they are included in the calculation of earnings, net unrealized gain (loss) from foreign currency exchange transactions and gains (losses) from the change in the fair value of derivative warrant liability. “Adjusted Operating Expenses” is operating expenses excluding depreciation, amortization and non-cash stock-based compensation expense. Alimera uses Adjusted EBITDA and Adjusted Operating Expenses in the management of its business and Alimera's lender uses Adjusted EBITDA as a financial covenant measurement. Accordingly, Adjusted EBITDA and Adjusted Operating Expenses for the second quarter of 2017 have been presented in certain instances excluding items identified in the reconciliations provided. These non-GAAP financial measures, as presented, may not be comparable to similarly titled measures reported by other companies since not all companies may calculate these measures in an identical manner and, therefore, they are not necessarily an accurate measure of comparison between companies. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for guidance prepared in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant elements that are required by GAAP to be recorded in Alimera's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management in determining these non-GAAP financial measures. In order to compensate for these limitations, Alimera presents its non-GAAP financial results in connection with its GAAP results. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to their most directly comparable GAAP financial measure.

Third Quarter 2017 Results Conference Call Thursday, November 2, 2017