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July 12, 2009   Confidential
Ocularis Pharma: Overview
• Developing Nyxol® Eye Drops to Treat Night
  Vision Complaints
  – Night Myopia
  – Post-IOL surgery
  – Post-LASIK surgery

• Retasking an approved drug for a new indication
  – Lower risk, lower cost, faster to market
  – $400+ million market potential (US)
  – Large ophthalmic companies now entering market

• Experienced management team and field-
  leading advisors

                  © 2008 Ocularis Pharma - Confidential   March, 2008 Page 2
Management Group
• Al Meyer, CEO
   – Former EVP & CFO, PathoGenesis

• Charlie Hoffmann, Principal, Business Development
   – Investment banker Prudential Vector Healthcare, First Boston,
     Goldman Sachs

• Jerry Horn, MD, Principal, Scientific & Medical
   – Ophthalmic surgeon specializing in LASIK
   – Inventor of Nyxol Eye Drops

• Bill Pitlick, PhD, Principal, Product Development
   – Chief Scientific Officer, Avera Pharma
   – Former VP, Clinical/Regulatory Affairs, PathoGenesis

• Keith Terry, Principal, Market Development
   – Director, Strategic Marketing, Immunology, Abbott Labs
   – Former Managing Director, International, PathoGenesis


                          © 2008 Ocularis Pharma - Confidential   March, 2008 Page 3
Advisory Board
• Glen Bradley, Retired CEO, CIBA Vision

• Bill Gantz, Executive Chairman, Ovation Pharma
   – Founder & CEO, PathoGenesis
   – Former President & COO, Baxter

• Stephen Klyce, PhD, Professor, LSU
   – Expert on corneal aberrations and pupil size

• Marguerite McDonald, MD, OCLI
   – LASIK pioneer

• Peter Drake, PhD, Founder & EVP, Vector Securities
_______________________________________________

• Art Ginsburg, PhD, Chairman, Vision Sciences Corp
   – Expert on contrast sensitivity



                           © 2008 Ocularis Pharma - Confidential   March, 2008 Page 4
Night Vision Complaints (“NVCs”)

• NVCs include several conditions
  – Glare
  – Halos
  – Starbursts
  – Poor depth perception

• Significant unmet need, increasingly recognized
  – 20+% of patients complain to eye docs about NVCs
  – 6-7% have moderate/severe condition, i.e. night vision worse
    than 20/45

• No medications indicated to treat NVCs today

                       © 2008 Ocularis Pharma - Confidential   March, 2008 Page 5
Nyxol Eye Drops to Treat Night Vision Complaints




   Typical Night Vision Disturbance                                   Clear Night Vision




                              © 2008 Ocularis Pharma - Confidential                March, 2008 Page 6
Cause of Night Vision Complaints

• Imperfections exist in periphery of cornea –
  “higher order aberrations”

• In dim light, pupil dilates more than needed

• Light enters through periphery and scatters

• Treatment thesis:
     Limit pupil dilation to improve night vision

                   © 2008 Ocularis Pharma - Confidential   March, 2008 Page 7
Nyxol Eye Drops: Manage Pupil Dilation

● Mechanism of Action
  – Alpha 1 antagonist
  – Inhibits iris dilator muscle
  – Limits pupil dilation




                     Typical                                  Managed
                     Dilation                                 Dilation




                      © 2008 Ocularis Pharma - Confidential     March, 2008 Page 8
Nyxol Eye Drops: Manage Pupil Dilation
       Before                After




                © 2008 Ocularis Pharma - Confidential   March, 2008 Page 9
Nyxol Eye Drops: Drug Profile

• Phentolamine mesylate
   – Long used as intravenous hypotensive
   – Recently approved (5/08) as injection to reverse oral anesthesia
   – Reformulated as an eye drop to improve night vision

• Nyxol activity
   – Use as needed
   – One drop in each eye
   – Works in < 30 minutes, lasts 8 hours

• Nyxol safety
   – Topical use, no systemic effect observed
   – Very well tolerated in the eye, very comfortable
   – Some users experience redness, manage w/ OTC redness
     reducer

                        © 2008 Ocularis Pharma - Confidential   March, 2008 Page 10
Nyxol Eye Drops: Milestones Achieved
• Established Intellectual Property
   – Four U.S. patents issued for use to improve dim light vision
   – Five patents pending


• Established Market Dimension
   – External market research – 3 Health Advances studies
   – Internal market research – 4 Patient, M.D. and O.D. studies
   – Conclusion: Nyxol is a $400+ million market in US


• Established Regulatory Pathway with FDA
   –   Acknowledged serious unmet medical need
   –   Stated no systemic tox required
   –   Discussed pivotal study design
   –   Agreed on primary endpoint (contrast sensitivity)



                            © 2008 Ocularis Pharma - Confidential   March, 2008 Page 11
Nyxol Eye Drops: Milestones Achieved

• Proved Treatment Thesis - NOVA Study
   – 100 patients with NVCs in 5 patient groups
      • Night myopia
      • Post-LASIK
      • High myopia
      • Contact lens
      • Cataract
   – Employed consensual pupillary light reflex to make pupils
     smaller
   – Measured night vision (LCVA) before and after
   – Study shows conclusively
      Making pupils smaller improves night vision



                        © 2008 Ocularis Pharma - Confidential   March, 2008 Page 12
Nyxol Eye Drops: Milestones Achieved
• Completed 4 Phase 1/2 clinical trials
  – Investigator INDs
  – 101 subjects in total
  – Single dose, 4 concentrations, placebo controlled


• Demonstrated that Nyxol is a viable drug
  – Clinically & statistically significant improvement in night vision
      •   Contrast Sensitivity
      •   Low Contrast Visual Acuity
      •   Wavefront Aberrometry
      •   Subjective Questionnaire
  – Well tolerated in the eye – very comfortable
  – No systemic effects


                           © 2008 Ocularis Pharma - Confidential   March, 2008 Page 13
Nyxol Eye Drops: Development Plan
Overview
• In 12 months - Conduct multiple dose (14 day) Phase 2
  study
   – Company IND
   – 40 subjects with severe night vision complaints
   – Full panel of objective and subjective evaluations

• In 18 months - Initiate Phase 3 clinical trial
   –   Broad indication – moderate/severe NVCs
   –   2 pivotal studies
   –   500 patients in each
   –   6 month treatment
   –   Follow 100 patients for full year



                         © 2008 Ocularis Pharma - Confidential   March, 2008 Page 14
Nyxsol Recent Milestone

• Received Term Sheet From Major
  Pharmaceutical Company For $28M




               © 2008 Ocularis Pharma - Confidential   March, 2008 Page 15
Nyxol Eye Drops: 2009 - 2010
• Developed comprehensive formulation strategy: existing
  patents precede FDA approved use & formulation same
  drug for different medical application

•   Plan:
•   1 Corporate IND (animal tox, formulation/stability) $500k
•   2 Definitive Phase II study: 60 pts, 14 days $500k
•   3 Manufacturing: Ready fill, blowfill seal, pf free $500k
•   4 Comprehensive NOVA, other marketing study $500k
•   5 Management, overhead, other $500k

• Result: $400 M market drug w Corp IND; Phase I, II
  completed. Valuation expected: $50M - $100M.

                       © 2008 Ocularis Pharma - Confidential   March, 2008 Page 16
Comparable Phase 3 Programs

Product      Nyxol®                  Restasis®                Alphagan P®



                                     Moderate to
             Moderate to                                      Open Angle
Indication                           Severe Dry
             Severe NVC                                       Glaucoma
                                     Eye

# of
Patients     1,000                   1,200                    926


Duration     6 months                6 months                 1 year

                      © 2008 Ocularis Pharma - Confidential      March, 2008 Page 17
Ocularis Strategy: Next Steps
• Attain value-creating milestones
   – Conduct investigator IND studies
       • 7 day use study/focus group
       • Population study in normals/incidence & severity of NVCs
       • 28 day use study/focus group

   – Obtain formulation license
   – Obtain company IND
       • Conduct formulation/28 day stability study
       • Conduct 28 day topical animal tox study

   – Complete multi-dose Phase 2 study

   – Initiate pivotal Phase 3 study

• Partner, license or sell to major ophthalmic company
       Alcon             AMO
       Allergan          Bausch & Lomb


                          © 2008 Ocularis Pharma - Confidential   March, 2008 Page 18
Ocularis: Investment Summary
 • Experienced, successful management group

 • Strong intellectual property protection

 • Strong clinical evidence that Nyxol works

 • Large unmet market

 • No competitive drug product

 • Clear execution plan
    Low cost / Low risk / Fast to market

 • Clear Exit Strategy

                     © 2008 Ocularis Pharma - Confidential   March, 2008 Page 19
Ocularis Pharma
Appendices
1.   Recent Night Vision Market Developments
2.   Night Vision Complaint Market
3.   Results of Recent Phase II Trial
4.   NOVA Study Results
5.   Optometrist Survey Results
6.   Recent Phentolamine Approval
7.   Clinical Study: HOA Analysis



                  © 2008 Ocularis Pharma - Confidential   March, 2008 Page 20
Ocularis Pharma

Appendix 1

Recent Night Vision Market Developments




                 © 2008 Ocularis Pharma - Confidential   March, 2008 Page 21
Accidents at Night

• National Highway Traffic Safety Administration &
  National Safety Council say

   – 90% of driver’s reaction depends on vision

   – Fatality rate at night 3 times daytime rate

   – Pedestrians 3 to 7 times more vulnerable at night than daytime

   – 25% of travel occurs during darkness

   – 49% of fatal crashes occur at night



                        © 2008 Ocularis Pharma - Confidential   March, 2008 Page 22
Bausch & Lomb Introduces
            New Contact Lens

• B&L introduced PureVision® Contact Lenses in
  January, 2008

  – Improves vision in low-light conditions

  – 74,000 patient on-line study confirmed night vision and
    night driving were improved with PureVision CLs

  – Aspheric design of PureVision CLs reduces spherical
    aberration and improves night vision


                      © 2008 Ocularis Pharma - Confidential   March, 2008 Page 23
“Shedding Light on Driving in the Dark”
•   Study conducted by Kelton Research September, 2007

•   Sponsored by
    – ACUVUE® Contact Lenses (Johnson & Johnson)
    – Road & Travel Magazine (women’s automotive and travel issues)

•   Published by Johnson & Johnson Vision Care late 2007

•   Sample
    – 515 nationally representative Americans
    – 18 years old and older
    – Vision corrected
        • Rx Eyeglasses                   83%
        • Rx Contact Lenses               25%
        • Reading Glasses                 14%
        • LASIK                            4%
    – “Driving in the dark” - driving in low-light conditions
        • Early AM
        • Night



                                 © 2008 Ocularis Pharma - Confidential   March, 2008 Page 24
Driving in the Dark
• Percent of 150 million vision corrected Americans
  who
   – Have difficulty driving in the dark                        32%
     all or most of time

   – Experience glare                                           48%

   – See halos or starburst patterns                            28%

   – Have difficulty seeing signs or exits                      26%

   – Have difficulty judging distances                          22%



                        © 2008 Ocularis Pharma - Confidential   March, 2008 Page 25
How They Feel Behind the Wheel in the Dark
                                                                 Men Women

 • Uncomfortable                                                 17%   27%
   – Not confident in the dark


 • Unsafe                                                        17%   25%
   – Could not see signs


 • Anxious                                                       16%   25%
   – Do not want to drive




                         © 2008 Ocularis Pharma - Confidential         March, 2008 Page 26
Younger vs Older Drivers in the Dark

                                                          18-49     50+

• Difficulty driving in the dark                           36%      22%

• Hard time seeing signs & exits 30%                                 17%




                  © 2008 Ocularis Pharma - Confidential           March, 2008 Page 27
Market Summary
• B&L product introduction proves there is a night vision
  market

• J&J study proves the market is larger than our estimates
   – 1/3 have difficulty driving in the dark
   – More women than men experience night vision problems
   – More younger people than older people have night vision
     problems

• J&J is poised to launch their new contact lens for night
  vision shortly

• Other companies are launching night vision products
  (contact lenses and spectacle lenses)
   – Wavetouch
   – Ophthonics
   – Essilor


                       © 2008 Ocularis Pharma - Confidential   March, 2008 Page 28
Ocularis Pharma

Appendix 2

Night Vision Complaint Market




                 © 2008 Ocularis Pharma - Confidential   March, 2008 Page 29
Night Vision Complaint Market:
Summary Conclusions

• Total potential NVC market exceeds $420 million

• Nyxol can achieve sales of over $150 million

• Nyxol will be used to improve vision performance

• Optometrists will be the primary prescribers of Nyxol

• Nyxol will be marketed by a major ophthalmic company
  salesforce to 35,000 ODs and 18,000 MDs



                      © 2008 Ocularis Pharma - Confidential   March, 2008 Page 30
Night Vision Complaint Market:
Market Research and Analysis
• Ocularis has commissioned or conducted seven
  market research studies
  – Optometrists
  – Ophthalmologists
  – Patients


• Key conclusions
  – 20+% of patients visiting eye doctors complain about night vision
  – Moderate/Severe NVCs comprise about one third of these
    patients (~6.5%)
  – Optometrists would prescribe an eye drop indicated for NVCs
  – Patients would buy and use eye drops at the forecast price point



                        © 2008 Ocularis Pharma - Confidential   March, 2008 Page 31
NVC Patients Seen by ODs

   •   Avg patient visits per mo                                 250

   •   Night vision complaints                                   20%

   •   Treatable                                                 65%

   •   Treatable NVC patients per month                          32.5

   •   Months per year                                           12

   •   Treatable NVC patients per year                           390

   •   ODs in US                                                 35,000

   •   Annual Treatable NVC patients in US                       13.7 mm

   •   Moderate to Severe NVC patients in US                      4.5 mm



                         © 2008 Ocularis Pharma - Confidential         March, 2008 Page 32
Nyxol Eye Drops: Target Prescribers
• Primary – Optometrists (ODs), whose focus is
  visual function of the eye:
  –   Myopia
  –   Astigmatism
  –   Hyperopia
  –   Presbyopia
• Secondary – Ophthalmologists (MDs), whose
  focus is diseases of the eye:
  – Glaucoma
  – Macular degeneration
  – Cataracts
• Rationale
  – ODs are more attuned to night vision complaints than MDs
  – ODs will embrace a new prescription opportunity



                      © 2008 Ocularis Pharma - Confidential   March, 2008 Page 33
Night Vision Complaint Market

  Moderate/Severe NVC Market Segments

      Night Myopia (Non-Surgical) $327 mm


      Post-Surgical                                      $95 mm
        IOLs & LASIK



             Total                                       $422 mm



                 © 2008 Ocularis Pharma - Confidential        March, 2008 Page 34
Night Vision Complaint Market:
Night Myopia Market Potential
                                                                  Night
                                                                 Myopia
                                                                 (000's)

           Population                                              118,931

           Incidence of Mod/Sev NVCs                                  6.6%
           Patients w/ Mod/Sev NVCs                                  7,849

           Patients Treatable                                          65%

           Patients Seeking Therapy                                    40%

           Target Mod/Sev NVC Patients                               2,041

           Annual Rx Price (4 Rxs/Yr @ $40)                           $160

           Mod/Sev NVC Market Potential                           $326,536

           Penetration                                                 40%

           Nyxol Sales Projection                                 $130,615

                         © 2008 Ocularis Pharma - Confidential               March, 2008 Page 35
Night Vision Complaint Market:
Summary Market Potential
                              Nyxol Market Potential 2015 (000's)


                                        Night                 Post Surgical
                                       Myopia               IOL         LASIK      Total

  Population                              118,931             11,529      10,200    140,659

  Incidence of Mod/Sev NVCs                   6.6%               7.5%       6.4%       6.7%
  Patients w/ Mod/Sev NVCs                   7,849               866        655       9,370

  Patients Treatable                           65%               65%        65%

  Patients Seeking Therapy                     40%               60%        60%

  Target NVC Patients                        2,041               338        255       2,634
   % of Population                            1.7%               2.9%       2.5%       1.9%

  Rx Frequency/Rx Price                       4/$40             4/$40      4/$40

  Mod/Sev NVC Market Potential            $326,536          $54,013      $40,872   $421,422

  Penetration                                  40%               40%        40%            40%

  Nyxol Sales Projection                 $130,615           $21,605      $16,349   $168,569


                                 © 2008 Ocularis Pharma - Confidential             March, 2008 Page 36
Fejer Study - 1992: Incidence of “Night Myopia”
• Study parameters
   – 380 patients with no serious eye pathology
   – Photopic (normal light) corrected vision was 20/25 or better
   – “Night myopia” – defined as 20/45 or worse
• Findings
   – 16.6% incidence of “night myopia”
   – “Moderate to severe” NVCs about 6.6%
• Ocularis correlates “night myopia” with pupil diameter
                                  Incidence          Est Avg
                                   of Night          Scotopic
                      Age           Myopia          Pupil (mm)

                     16-25           32.7%                7.0

                     26-45           15.7%                6.0

                     46-65            5.5%                5.0

                      >65             3.1%                4.5

                     Total           16.6%               ~6.0
                             © 2008 Ocularis Pharma - Confidential   March, 2008 Page 37
Night Vision Complaints
Results of Initial Optometrist Survey

• Incidence of NVCs

  – Patients complain about night vision
     • Unprompted        20%
     • Prompted          >20%




                    © 2008 Ocularis Pharma - Confidential   March, 2008 Page 38
Night Vision Complaints
Results of Initial Optometrist Survey


• Nyxol™ Eye Drops to Treat NVCs
  – 70% of patients with NVCs would benefit
  – ODs would readily adopt a product that was safe and
    effective
  – ODs would prescribe empirically to patients
  – ODs would be primary prescribers
  – Patients would be willing to pay $30/month or
    $360/year for such a product




                   © 2008 Ocularis Pharma - Confidential   March, 2008 Page 39
Night Vision Complaints
Results of Initial Optometrist Survey

• Optometrists today are not prescribing drugs to
  treat NVCs
  – Alphagan P is rarely prescribed because
      • Side effects
      • Declining efficacy
      • Confusion with pharmacist over using a glaucoma med for
        night vision complaints
  – Do not prescribe pilocarpine for NVCs because of serious side
    effects
  – Prescribe glasses, rewetting drops or tell patient to look away
    from glare source, all with limited results




                       © 2008 Ocularis Pharma - Confidential   March, 2008 Page 40
Why Would ODs Treat NVCs?
• New, value added therapy for patients

  – ODs get a new therapeutic tool to improve night vision
  – ODs get a continuing, regular revenue stream vs periodic
    eyeglass/contact lens update every year or two
  – Example - dry eye therapy is taking off with Restasis
     • ODs writing Rxs


• Simple diagnosis and treatment

• No capital investment required


                         © 2008 Ocularis Pharma - Confidential   March, 2008 Page 41
Nyxol Eye Drops: Competition
• No drugs approved for treating NVCs

• Several existing drugs have pupil constricting
  side effects
  – Alphagan P
  – Pilocarpine


• For treating NVCs, these drugs have
  – Limited effectiveness
  – Unacceptable side effects



                      © 2008 Ocularis Pharma - Confidential   March, 2008 Page 42
Ocularis Pharma

Appendix 3

Nyxol – Results of Recent Phase II Trial




                  © 2008 Ocularis Pharma - Confidential   March, 2008 Page 43
Nyxol Eye Drops: OP-NYX-SNV
Latest Study Completed – 10/08
• Single dose, Phase II study
   – 24 subjects (16 on drug, 8 on placebo)
   – Severe night vision complaints
   – Positive effect on LCVA with consensual pupillary light reflex

• Measurement
   –   Primary endpoint - Contrast Sensitivity
   –   High & low contrast visual acuity
   –   Wavefront aberrometry
   –   Subjective questionnaire
   –   Pupil size

• Study goals
   – Demonstrate Nyxol Eye Drops work and are safe
   – Compare measurement techniques

                          © 2008 Ocularis Pharma - Confidential   March, 2008 Page 44
Nyxol Eye Drops: OP-NYX-SNV
• Co-Principal Investigators
   – Dr. Marguerite McDonald
   – Dr. Eric Donnenfeld

• Study Site - Ophthalmic Consultants of Long Island
   – 25 eye docs, 7 offices
   – Largest ophthalmic practice in New York
   – Full time clinical research staff

• Study status
   –   47 subjects screened, 24 enrolled
   –   First subject enrolled 8/14/07
   –   Last subject completed 10/30/07
   –   Data analysis continuing
   –   Study report available early 2008

                         © 2008 Ocularis Pharma - Confidential   March, 2008 Page 45
Preliminary Analysis OP-NYX-SNV
Study Demographics - 24 Total Subjects
  – Gender
     • 7 Male
     • 17 Female
  – Age
     • 14 45 & Under
     • 10 Over 45
  – Type
     • 19 Night Myopes
     • 5 Post-surgical
          – 3 LASIK
          – 1 RK
          – 1 IOL



                       © 2008 Ocularis Pharma - Confidential   March, 2008 Page 46
Nyxol Eye Drops: OP-NYX-SNV
Subject 002 Demographics

• Female, 38 years old, night myopia (no surgery)

• Night vision problems
   – Glare
   – Halos
   – Depth perception


• Limits night driving




                        © 2008 Ocularis Pharma - Confidential   March, 2008 Page 47
OP-NYX-SNV: Subject 002
Pre- and Post-Dose
                                                  OD            OS
  Pre-Dose
   Pupil Size (mm)                                7.5           7.8

   LCVA                                         20/53          20/53

   Ability to See?                                 Lot of difficulty


  Post-Dose
   Pupil Size (mm)                                5.2           5.1

   LCVA                                         20/17          20/15

   Change in Ability to See?                          Much better

                     © 2008 Ocularis Pharma - Confidential             March, 2008 Page 48
Contrast Sensitivity Methodology




          © 2008 Ocularis Pharma - Confidential   March, 2008 Page 49
Contrast Sensitivity Subject 002 OD
FACT Pre Dose         FACT Post-Dose




            © 2008 Ocularis Pharma - Confidential   March, 2008 Page 50
Contrast Sensitivity Subject 002 OS
FACT Pre Dose         FACT Post Dose




            © 2008 Ocularis Pharma - Confidential   March, 2008 Page 51
Nyxol Eye Drops: OP-NYX-SNV Subject 002

• Subject 002 went from being functionally
  blind at night to being able to see well

• Substantial improvement in all measures
  – Contrast Sensitivity         Well below normal to high normal
                                 Exceeds FDA efficacy criteria
  – LCVA                         20/53 to 20/17 or better
  – Snellen acuity               1 line of improvement
  – Subjective                   “Lot of difficulty” to “much better”


                     © 2008 Ocularis Pharma - Confidential   March, 2008 Page 52
OP-NYX-SNV Study
Contrast Sensitivity – Active Pre vs Post

                     P < .05 P < .05
                 7
                 6                    P < .001

                 5
   Patch Units




                 4                                 P < .001
                                                                          Pre
                 3                                            P < .001    Post
                 2
                 1
                 0
                     1.5      3           6          12           18
                     Spatial Frequency – Cycles/Degree



                                  © 2008 Ocularis Pharma - Confidential          March, 2008 Page 53
Contrast Sensitivity Active Subjects
FACT Pre-Dose       FACT Post-Dose




           © 2008 Ocularis Pharma - Confidential   March, 2008 Page 54
Contrast Sensitivity Active Subjects
             45 & Under
FACT Pre Dose         FACT Post Dose




            © 2008 Ocularis Pharma - Confidential   March, 2008 Page 55
Individual Subject Analysis
                                                 Change in FACT Patch Units
                                     Contrast Sensitivity - Active                                                             Contrast Sensitivity - Placebo


                            8                                                                                             8

                            7                                                                                             7

                            6                                                                                             6

                            5                                                                                             5




                                                                                              Delta Patches-Pre vs Post
Delta Patches-Pre vs Post




                            4                                                                                             4

                            3                                                                                             3

                            2                                                                                             2

                            1                                                                                             1

                            0                                                                                             0
                                 1           2         3         4           5                                                 1       2         3          4         5
                            -1                                                                                            -1

                            -2                                                                                            -2

                            -3                                                                                            -3
                                                 Frequencies                                                                               Frequencies




                                                                     © 2008 Ocularis Pharma - Confidential                                           March, 2008 Page 56
Mesopic Low Contrast Visual Acuity
                                                                                   p < .001

                         12
                              p < .001
                         10
Change in Letters Read




                         8                                p < .05

                         6

                         4

                         2

                         0
                              Pre vs Post           Active vs Placebo            Pre vs Post <45




                                         © 2008 Ocularis Pharma - Confidential            March, 2008 Page 57
Wavefront Acuity Map RMS Error
                               NS
                                                         P < .001
                     1.5

                    1.25
RMS Error Units µ




                      1

                    0.75                                               Pre
                                                                       Post
                     0.5

                    0.25

                      0
                           Placebo                      Active



                               © 2008 Ocularis Pharma - Confidential    March, 2008 Page 58
Subjective Change in Night Vision
100%

80%

60%
                                                               Placebo
40%
                                                               Active
20%

 0%
       Much Better Same Worse Much
       Better                 Worse


                © 2008 Ocularis Pharma - Confidential   March, 2008 Page 59
Reduction in Pupil Diameter

                             1.50   p < .0001
                                                                                   p<.0001
Reduction in Pupil Diam mm




                             1.25

                             1.00

                             0.75

                             0.50

                             0.25

                             0.00
                                     Pre vs Post                                 Active vs Placebo




                                         © 2008 Ocularis Pharma - Confidential                 March, 2008 Page 60
Redness

Severe        100



Moder-         75
                      NS                                    p<0.001
                                                                                        Pre

Slight
         Units 50                                                                       Post

         0-100

               25
Trace


None            0
                    Placebo                                  Active


                    © 2008 Ocularis Pharma - Confidential             March, 2008 Page 61
Intraocular Pressure

                    NS                            P < .001
            14
            12
            10
IOP mm Hg




            8
                                                              Pre
            6                                                 Post
            4
            2
            0
                 Placebo                      Active



                      © 2008 Ocularis Pharma - Confidential    March, 2008 Page 62
Systolic Blood Pressure

           150

           125

           100
BP mm Hg




           75                                                   Pre
                                                                Post
           50

           25

            0
                   Placebo                       Active



                        © 2008 Ocularis Pharma - Confidential    March, 2008 Page 63
Diastolic Blood Pressure

           100

           80
BP mm Hg




           60
                                                              Pre
           40                                                 Post

           20

            0
                 Placebo                       Active



                      © 2008 Ocularis Pharma - Confidential    March, 2008 Page 64
OP-NYX-SNV

• Study Summary
  – Nyxol Eye Drops improve night vision
     • Clinically meaningful
     • Statistically significant
  – Results consistent across all endpoints
     •   Contrast Sensitivity
     •   High & Low Contrast Visual Acuity
     •   Wavefront
     •   Subjective questionnaire
     •   Pupil size
  – Nyxol Eye Drops safe and well tolerated


                         © 2008 Ocularis Pharma - Confidential   March, 2008 Page 65
Ocularis Pharma

Appendix 4

NOVA Study Results




               © 2008 Ocularis Pharma - Confidential   March, 2008 Page 66
Night Optics and Vision Assessment (NOVA)
Study Design
 • Non-therapeutic epidemiological study
 • 100 subjects (20 in each of 5 groups) with complaints of
   night vision disturbances
    –   Post refractive surgery
    –   High myopia/astigmatism
    –   Contact lens wearers
    –   Glasses only at night
    –   Cataracts
 • Endpoints measured prior to and during illumination of
   the contralateral eye (consensual pupillary light reflex)
    – Pupil diameter
    – High and low contrast visual acuity
    – Subjective questionnaire


                         © 2008 Ocularis Pharma - Confidential   March, 2008 Page 67
NOVA Study Result


• 4 of 5 groups show significant improvement with smaller
  pupils in dim light
   –   Post refractive surgery
   –   High myopia/astigmatism
   –   Contact lens wearers
   –   Glasses only at night (night myopia)

• Small fraction of cataract patients reported improvement




                          © 2008 Ocularis Pharma - Confidential   March, 2008 Page 68
NOVA Study
Smaller Pupils Improve Night Vision




                © 2008 Ocularis Pharma - Confidential   March, 2008 Page 69
NOVA Study
Smaller Pupils Improve Visual Acuity




                © 2008 Ocularis Pharma - Confidential   March, 2008 Page 70
Population Study Design
• Epidemiological study

• Objectives are to determine
   – Incidence of night vision disturbances in the normal population
   – Spectrum of severity of night vision disturbances
   – Benefit derived from making pupils smaller

• Endpoints measured prior to and during illumination of
  the contralateral eye (consensual pupillary light reflex)
   –   Contrast sensitivity
   –   High and low contrast visual acuity
   –   Pupil size
   –   Subjective questionnaire

• Study size, centers, timing - TBD


                          © 2008 Ocularis Pharma - Confidential   March, 2008 Page 71
Ocularis Pharma

Appendix 5

Optometrist Survey Results




                 © 2008 Ocularis Pharma - Confidential   March, 2008 Page 72
Optometrist Night Vision Survey

• 13 questions asked on optometrist experience
  with night vision complaints
• 35 optometrists in Milwaukee area surveyed
• Conducted by Milwaukee Market Research
• Completed March, 2008




                 © 2008 Ocularis Pharma - Confidential   March, 2008 Page 73
Average Patients Seen Per Month


300


250

200


150

100


50

 0
       Survey                            National Average



                © 2008 Ocularis Pharma - Confidential       March, 2008 Page 74
Services Provided



     3%   5%
 4%

9%
                                                   Eyeglasses/Contacts
                                                   Allergy/Dry Eye
                                                   Glaucoma
                                                   Pre/Post Surgery
                                                   Other


                           79%




           © 2008 Ocularis Pharma - Confidential                      March, 2008 Page 75
Night Vision Complaints


30%


25%


20%


15%


10%


5%


0%
         Unprompted                           Prompted


               © 2008 Ocularis Pharma - Confidential     March, 2008 Page 76
Symptoms Cited by Patients with NVCs

  100%
   90%
   80%
   70%
   60%
   50%
   40%
   30%
   20%
   10%
   0%
          Night       Glare    Halos       Starbursts Sensitivity       Depth    Ghosting
         Driving                                                      Perception
         Difficulty




                              © 2008 Ocularis Pharma - Confidential                 March, 2008 Page 77
Potential Causes of NVCs

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

 0%
         Night   Cataracts     Dry Eye         Post-         Post-IOL   Back of
        Myopia                                 LASIK                    the Eye




                     © 2008 Ocularis Pharma - Confidential                  March, 2008 Page 78
What Drugs Do ODs Prescribe

80%

70%

60%

50%

40%

30%

20%

10%

0%
      Alphagan P   Pilocarpine            Artificial Tears   None


                   © 2008 Ocularis Pharma - Confidential        March, 2008 Page 79
What Devices Do ODs Prescribe

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
      Eyeglasses       Tinted            Anti Reflective   Look Away
                      Glasses               Coating


                   © 2008 Ocularis Pharma - Confidential           March, 2008 Page 80
What Percent Would Benefit?
What Percent Would OD Prescribe?

 40%

 35%

 30%

 25%

 20%

 15%

 10%

 5%

 0%
       % Benefit                              % Prescribe



               © 2008 Ocularis Pharma - Confidential        March, 2008 Page 81
Price and Prescriber

•   Price
    – Our market model assumes $13 per month
    – Survey says patients would pay $24 per month for this product,
      almost double our assumed price


•   Likely Prescribers
    1 Optometrist
    2 Refractive Surgeon
    3 Ophthalmologist




                         © 2008 Ocularis Pharma - Confidential   March, 2008 Page 82
Optometrist Survey Summary
• 28% of patients would complain about night
  vision, if asked
• Treat NVCs with drugs
  – 70+% Artificial tears
  – <25% Glaucoma meds with pupil reduction side effect
• Treat NVCs with devices
  – 45% Eyeglasses
  – 45% Antireflective coating
  – 26% Tinted glasses
• Who would benefit from Nyxol™ Eye Drops?
  – 35% of NVC sufferers
• Who would get Nyxol scrips?
  – 39% of NVC sufferers



                       © 2008 Ocularis Pharma - Confidential   March, 2008 Page 83
Ocularis Pharma

Appendix 6

Recent Phentolamine Approval




                © 2008 Ocularis Pharma - Confidential   March, 2008 Page 84
Novalar Pharma & Phentolamine Mesylate
• Novalar Pharma
  – San Diego based, founded in 2000
  – Financed by Domain, NEA, SR One and Montreux
  – Focused on drugs for dentristry

• OraVerse® for Injection (phentolamine mesylate)
  –   Approved for use by FDA May, 2008
  –   Indicated for reversal of dental anesthesia
  –   Labeled for adults and pediatrics (>6 years old)
  –   Lifestyle drug, reduces time of numbness by 50%
  –   4 use patents, 1 formulation patent
  –   Will launch in October, 2008 with own sales/marketing team
  –   Injectable dosage form distinct from Nyxol® Eye Drops



                        © 2008 Ocularis Pharma - Confidential   March, 2008 Page 85
Implications for Nyxol® Eye Drops Program
•   Novalar’s success with OraVerse demonstrates phentolamine
    mesylate can be:
     – Formulated in solution with 3 year stability

    – Manufactured (API and drug product) under cGMP

    – Shown to be safe in animals and man
       • Approved for adults and children (6 and older)
       • FDA required tox and safety to be “squeaky clean” for
         approval of this lifestyle drug

    – Approved by FDA under modern regulations (last approved in
      1952)

Conclusion: Results in a major reduction in risk, cost and time to
            market for Nyxol Eye Drops development

                        © 2008 Ocularis Pharma - Confidential   March, 2008 Page 86
Phentolamine Mesylate
Comparison of Dosage Forms & Systemic Safety
                          Nyxol® Eye Drops                    OraVerse® Injection   Regitine® Injection


Indication                   Treatment of                        Reversal of           Diagnosis of
                        night vision complaints               dental anesthesia     pheochromocytoma

Concentration               1.0% solution                       0.0235% solution       0.5% solution
                              10 mg/mL                            0.235 mg/mL             5 mg/mL

Route of Admin             Corneal surface                         Submucosal           Intravenous

Delivered Dose                  1.0 mg                                 0.4 mg               5.0 mg

Systemic Take Up %            10% (est)                                 100%                 100%
Systemic Dose                  0.1 mg                                  0.4 mg               5.0 mg

Fraction of IV Dose %             2%                                      8%                 100%


        Conclusion: Nyxol Eye Drops should have systemic safety
                    better than or equal to OraVerse

                                         © 2008 Ocularis Pharma - Confidential      March, 2008 Page 87
Ocularis Pharma

Appendix 7

Clinical Study: HOA Analysis




                  © 2008 Ocularis Pharma - Confidential   March, 2008 Page 88
HOA Analysis
Avg Change Pre- to Post- Drug




         © 2008 Ocularis Pharma - Confidential   March, 2008 Page 89

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Ocularis Presentation 0908[2]

  • 1. July 12, 2009 Confidential
  • 2. Ocularis Pharma: Overview • Developing Nyxol® Eye Drops to Treat Night Vision Complaints – Night Myopia – Post-IOL surgery – Post-LASIK surgery • Retasking an approved drug for a new indication – Lower risk, lower cost, faster to market – $400+ million market potential (US) – Large ophthalmic companies now entering market • Experienced management team and field- leading advisors © 2008 Ocularis Pharma - Confidential March, 2008 Page 2
  • 3. Management Group • Al Meyer, CEO – Former EVP & CFO, PathoGenesis • Charlie Hoffmann, Principal, Business Development – Investment banker Prudential Vector Healthcare, First Boston, Goldman Sachs • Jerry Horn, MD, Principal, Scientific & Medical – Ophthalmic surgeon specializing in LASIK – Inventor of Nyxol Eye Drops • Bill Pitlick, PhD, Principal, Product Development – Chief Scientific Officer, Avera Pharma – Former VP, Clinical/Regulatory Affairs, PathoGenesis • Keith Terry, Principal, Market Development – Director, Strategic Marketing, Immunology, Abbott Labs – Former Managing Director, International, PathoGenesis © 2008 Ocularis Pharma - Confidential March, 2008 Page 3
  • 4. Advisory Board • Glen Bradley, Retired CEO, CIBA Vision • Bill Gantz, Executive Chairman, Ovation Pharma – Founder & CEO, PathoGenesis – Former President & COO, Baxter • Stephen Klyce, PhD, Professor, LSU – Expert on corneal aberrations and pupil size • Marguerite McDonald, MD, OCLI – LASIK pioneer • Peter Drake, PhD, Founder & EVP, Vector Securities _______________________________________________ • Art Ginsburg, PhD, Chairman, Vision Sciences Corp – Expert on contrast sensitivity © 2008 Ocularis Pharma - Confidential March, 2008 Page 4
  • 5. Night Vision Complaints (“NVCs”) • NVCs include several conditions – Glare – Halos – Starbursts – Poor depth perception • Significant unmet need, increasingly recognized – 20+% of patients complain to eye docs about NVCs – 6-7% have moderate/severe condition, i.e. night vision worse than 20/45 • No medications indicated to treat NVCs today © 2008 Ocularis Pharma - Confidential March, 2008 Page 5
  • 6. Nyxol Eye Drops to Treat Night Vision Complaints Typical Night Vision Disturbance Clear Night Vision © 2008 Ocularis Pharma - Confidential March, 2008 Page 6
  • 7. Cause of Night Vision Complaints • Imperfections exist in periphery of cornea – “higher order aberrations” • In dim light, pupil dilates more than needed • Light enters through periphery and scatters • Treatment thesis: Limit pupil dilation to improve night vision © 2008 Ocularis Pharma - Confidential March, 2008 Page 7
  • 8. Nyxol Eye Drops: Manage Pupil Dilation ● Mechanism of Action – Alpha 1 antagonist – Inhibits iris dilator muscle – Limits pupil dilation Typical Managed Dilation Dilation © 2008 Ocularis Pharma - Confidential March, 2008 Page 8
  • 9. Nyxol Eye Drops: Manage Pupil Dilation Before After © 2008 Ocularis Pharma - Confidential March, 2008 Page 9
  • 10. Nyxol Eye Drops: Drug Profile • Phentolamine mesylate – Long used as intravenous hypotensive – Recently approved (5/08) as injection to reverse oral anesthesia – Reformulated as an eye drop to improve night vision • Nyxol activity – Use as needed – One drop in each eye – Works in < 30 minutes, lasts 8 hours • Nyxol safety – Topical use, no systemic effect observed – Very well tolerated in the eye, very comfortable – Some users experience redness, manage w/ OTC redness reducer © 2008 Ocularis Pharma - Confidential March, 2008 Page 10
  • 11. Nyxol Eye Drops: Milestones Achieved • Established Intellectual Property – Four U.S. patents issued for use to improve dim light vision – Five patents pending • Established Market Dimension – External market research – 3 Health Advances studies – Internal market research – 4 Patient, M.D. and O.D. studies – Conclusion: Nyxol is a $400+ million market in US • Established Regulatory Pathway with FDA – Acknowledged serious unmet medical need – Stated no systemic tox required – Discussed pivotal study design – Agreed on primary endpoint (contrast sensitivity) © 2008 Ocularis Pharma - Confidential March, 2008 Page 11
  • 12. Nyxol Eye Drops: Milestones Achieved • Proved Treatment Thesis - NOVA Study – 100 patients with NVCs in 5 patient groups • Night myopia • Post-LASIK • High myopia • Contact lens • Cataract – Employed consensual pupillary light reflex to make pupils smaller – Measured night vision (LCVA) before and after – Study shows conclusively Making pupils smaller improves night vision © 2008 Ocularis Pharma - Confidential March, 2008 Page 12
  • 13. Nyxol Eye Drops: Milestones Achieved • Completed 4 Phase 1/2 clinical trials – Investigator INDs – 101 subjects in total – Single dose, 4 concentrations, placebo controlled • Demonstrated that Nyxol is a viable drug – Clinically & statistically significant improvement in night vision • Contrast Sensitivity • Low Contrast Visual Acuity • Wavefront Aberrometry • Subjective Questionnaire – Well tolerated in the eye – very comfortable – No systemic effects © 2008 Ocularis Pharma - Confidential March, 2008 Page 13
  • 14. Nyxol Eye Drops: Development Plan Overview • In 12 months - Conduct multiple dose (14 day) Phase 2 study – Company IND – 40 subjects with severe night vision complaints – Full panel of objective and subjective evaluations • In 18 months - Initiate Phase 3 clinical trial – Broad indication – moderate/severe NVCs – 2 pivotal studies – 500 patients in each – 6 month treatment – Follow 100 patients for full year © 2008 Ocularis Pharma - Confidential March, 2008 Page 14
  • 15. Nyxsol Recent Milestone • Received Term Sheet From Major Pharmaceutical Company For $28M © 2008 Ocularis Pharma - Confidential March, 2008 Page 15
  • 16. Nyxol Eye Drops: 2009 - 2010 • Developed comprehensive formulation strategy: existing patents precede FDA approved use & formulation same drug for different medical application • Plan: • 1 Corporate IND (animal tox, formulation/stability) $500k • 2 Definitive Phase II study: 60 pts, 14 days $500k • 3 Manufacturing: Ready fill, blowfill seal, pf free $500k • 4 Comprehensive NOVA, other marketing study $500k • 5 Management, overhead, other $500k • Result: $400 M market drug w Corp IND; Phase I, II completed. Valuation expected: $50M - $100M. © 2008 Ocularis Pharma - Confidential March, 2008 Page 16
  • 17. Comparable Phase 3 Programs Product Nyxol® Restasis® Alphagan P® Moderate to Moderate to Open Angle Indication Severe Dry Severe NVC Glaucoma Eye # of Patients 1,000 1,200 926 Duration 6 months 6 months 1 year © 2008 Ocularis Pharma - Confidential March, 2008 Page 17
  • 18. Ocularis Strategy: Next Steps • Attain value-creating milestones – Conduct investigator IND studies • 7 day use study/focus group • Population study in normals/incidence & severity of NVCs • 28 day use study/focus group – Obtain formulation license – Obtain company IND • Conduct formulation/28 day stability study • Conduct 28 day topical animal tox study – Complete multi-dose Phase 2 study – Initiate pivotal Phase 3 study • Partner, license or sell to major ophthalmic company Alcon AMO Allergan Bausch & Lomb © 2008 Ocularis Pharma - Confidential March, 2008 Page 18
  • 19. Ocularis: Investment Summary • Experienced, successful management group • Strong intellectual property protection • Strong clinical evidence that Nyxol works • Large unmet market • No competitive drug product • Clear execution plan Low cost / Low risk / Fast to market • Clear Exit Strategy © 2008 Ocularis Pharma - Confidential March, 2008 Page 19
  • 20. Ocularis Pharma Appendices 1. Recent Night Vision Market Developments 2. Night Vision Complaint Market 3. Results of Recent Phase II Trial 4. NOVA Study Results 5. Optometrist Survey Results 6. Recent Phentolamine Approval 7. Clinical Study: HOA Analysis © 2008 Ocularis Pharma - Confidential March, 2008 Page 20
  • 21. Ocularis Pharma Appendix 1 Recent Night Vision Market Developments © 2008 Ocularis Pharma - Confidential March, 2008 Page 21
  • 22. Accidents at Night • National Highway Traffic Safety Administration & National Safety Council say – 90% of driver’s reaction depends on vision – Fatality rate at night 3 times daytime rate – Pedestrians 3 to 7 times more vulnerable at night than daytime – 25% of travel occurs during darkness – 49% of fatal crashes occur at night © 2008 Ocularis Pharma - Confidential March, 2008 Page 22
  • 23. Bausch & Lomb Introduces New Contact Lens • B&L introduced PureVision® Contact Lenses in January, 2008 – Improves vision in low-light conditions – 74,000 patient on-line study confirmed night vision and night driving were improved with PureVision CLs – Aspheric design of PureVision CLs reduces spherical aberration and improves night vision © 2008 Ocularis Pharma - Confidential March, 2008 Page 23
  • 24. “Shedding Light on Driving in the Dark” • Study conducted by Kelton Research September, 2007 • Sponsored by – ACUVUE® Contact Lenses (Johnson & Johnson) – Road & Travel Magazine (women’s automotive and travel issues) • Published by Johnson & Johnson Vision Care late 2007 • Sample – 515 nationally representative Americans – 18 years old and older – Vision corrected • Rx Eyeglasses 83% • Rx Contact Lenses 25% • Reading Glasses 14% • LASIK 4% – “Driving in the dark” - driving in low-light conditions • Early AM • Night © 2008 Ocularis Pharma - Confidential March, 2008 Page 24
  • 25. Driving in the Dark • Percent of 150 million vision corrected Americans who – Have difficulty driving in the dark 32% all or most of time – Experience glare 48% – See halos or starburst patterns 28% – Have difficulty seeing signs or exits 26% – Have difficulty judging distances 22% © 2008 Ocularis Pharma - Confidential March, 2008 Page 25
  • 26. How They Feel Behind the Wheel in the Dark Men Women • Uncomfortable 17% 27% – Not confident in the dark • Unsafe 17% 25% – Could not see signs • Anxious 16% 25% – Do not want to drive © 2008 Ocularis Pharma - Confidential March, 2008 Page 26
  • 27. Younger vs Older Drivers in the Dark 18-49 50+ • Difficulty driving in the dark 36% 22% • Hard time seeing signs & exits 30% 17% © 2008 Ocularis Pharma - Confidential March, 2008 Page 27
  • 28. Market Summary • B&L product introduction proves there is a night vision market • J&J study proves the market is larger than our estimates – 1/3 have difficulty driving in the dark – More women than men experience night vision problems – More younger people than older people have night vision problems • J&J is poised to launch their new contact lens for night vision shortly • Other companies are launching night vision products (contact lenses and spectacle lenses) – Wavetouch – Ophthonics – Essilor © 2008 Ocularis Pharma - Confidential March, 2008 Page 28
  • 29. Ocularis Pharma Appendix 2 Night Vision Complaint Market © 2008 Ocularis Pharma - Confidential March, 2008 Page 29
  • 30. Night Vision Complaint Market: Summary Conclusions • Total potential NVC market exceeds $420 million • Nyxol can achieve sales of over $150 million • Nyxol will be used to improve vision performance • Optometrists will be the primary prescribers of Nyxol • Nyxol will be marketed by a major ophthalmic company salesforce to 35,000 ODs and 18,000 MDs © 2008 Ocularis Pharma - Confidential March, 2008 Page 30
  • 31. Night Vision Complaint Market: Market Research and Analysis • Ocularis has commissioned or conducted seven market research studies – Optometrists – Ophthalmologists – Patients • Key conclusions – 20+% of patients visiting eye doctors complain about night vision – Moderate/Severe NVCs comprise about one third of these patients (~6.5%) – Optometrists would prescribe an eye drop indicated for NVCs – Patients would buy and use eye drops at the forecast price point © 2008 Ocularis Pharma - Confidential March, 2008 Page 31
  • 32. NVC Patients Seen by ODs • Avg patient visits per mo 250 • Night vision complaints 20% • Treatable 65% • Treatable NVC patients per month 32.5 • Months per year 12 • Treatable NVC patients per year 390 • ODs in US 35,000 • Annual Treatable NVC patients in US 13.7 mm • Moderate to Severe NVC patients in US 4.5 mm © 2008 Ocularis Pharma - Confidential March, 2008 Page 32
  • 33. Nyxol Eye Drops: Target Prescribers • Primary – Optometrists (ODs), whose focus is visual function of the eye: – Myopia – Astigmatism – Hyperopia – Presbyopia • Secondary – Ophthalmologists (MDs), whose focus is diseases of the eye: – Glaucoma – Macular degeneration – Cataracts • Rationale – ODs are more attuned to night vision complaints than MDs – ODs will embrace a new prescription opportunity © 2008 Ocularis Pharma - Confidential March, 2008 Page 33
  • 34. Night Vision Complaint Market Moderate/Severe NVC Market Segments Night Myopia (Non-Surgical) $327 mm Post-Surgical $95 mm IOLs & LASIK Total $422 mm © 2008 Ocularis Pharma - Confidential March, 2008 Page 34
  • 35. Night Vision Complaint Market: Night Myopia Market Potential Night Myopia (000's) Population 118,931 Incidence of Mod/Sev NVCs 6.6% Patients w/ Mod/Sev NVCs 7,849 Patients Treatable 65% Patients Seeking Therapy 40% Target Mod/Sev NVC Patients 2,041 Annual Rx Price (4 Rxs/Yr @ $40) $160 Mod/Sev NVC Market Potential $326,536 Penetration 40% Nyxol Sales Projection $130,615 © 2008 Ocularis Pharma - Confidential March, 2008 Page 35
  • 36. Night Vision Complaint Market: Summary Market Potential Nyxol Market Potential 2015 (000's) Night Post Surgical Myopia IOL LASIK Total Population 118,931 11,529 10,200 140,659 Incidence of Mod/Sev NVCs 6.6% 7.5% 6.4% 6.7% Patients w/ Mod/Sev NVCs 7,849 866 655 9,370 Patients Treatable 65% 65% 65% Patients Seeking Therapy 40% 60% 60% Target NVC Patients 2,041 338 255 2,634 % of Population 1.7% 2.9% 2.5% 1.9% Rx Frequency/Rx Price 4/$40 4/$40 4/$40 Mod/Sev NVC Market Potential $326,536 $54,013 $40,872 $421,422 Penetration 40% 40% 40% 40% Nyxol Sales Projection $130,615 $21,605 $16,349 $168,569 © 2008 Ocularis Pharma - Confidential March, 2008 Page 36
  • 37. Fejer Study - 1992: Incidence of “Night Myopia” • Study parameters – 380 patients with no serious eye pathology – Photopic (normal light) corrected vision was 20/25 or better – “Night myopia” – defined as 20/45 or worse • Findings – 16.6% incidence of “night myopia” – “Moderate to severe” NVCs about 6.6% • Ocularis correlates “night myopia” with pupil diameter Incidence Est Avg of Night Scotopic Age Myopia Pupil (mm) 16-25 32.7% 7.0 26-45 15.7% 6.0 46-65 5.5% 5.0 >65 3.1% 4.5 Total 16.6% ~6.0 © 2008 Ocularis Pharma - Confidential March, 2008 Page 37
  • 38. Night Vision Complaints Results of Initial Optometrist Survey • Incidence of NVCs – Patients complain about night vision • Unprompted 20% • Prompted >20% © 2008 Ocularis Pharma - Confidential March, 2008 Page 38
  • 39. Night Vision Complaints Results of Initial Optometrist Survey • Nyxol™ Eye Drops to Treat NVCs – 70% of patients with NVCs would benefit – ODs would readily adopt a product that was safe and effective – ODs would prescribe empirically to patients – ODs would be primary prescribers – Patients would be willing to pay $30/month or $360/year for such a product © 2008 Ocularis Pharma - Confidential March, 2008 Page 39
  • 40. Night Vision Complaints Results of Initial Optometrist Survey • Optometrists today are not prescribing drugs to treat NVCs – Alphagan P is rarely prescribed because • Side effects • Declining efficacy • Confusion with pharmacist over using a glaucoma med for night vision complaints – Do not prescribe pilocarpine for NVCs because of serious side effects – Prescribe glasses, rewetting drops or tell patient to look away from glare source, all with limited results © 2008 Ocularis Pharma - Confidential March, 2008 Page 40
  • 41. Why Would ODs Treat NVCs? • New, value added therapy for patients – ODs get a new therapeutic tool to improve night vision – ODs get a continuing, regular revenue stream vs periodic eyeglass/contact lens update every year or two – Example - dry eye therapy is taking off with Restasis • ODs writing Rxs • Simple diagnosis and treatment • No capital investment required © 2008 Ocularis Pharma - Confidential March, 2008 Page 41
  • 42. Nyxol Eye Drops: Competition • No drugs approved for treating NVCs • Several existing drugs have pupil constricting side effects – Alphagan P – Pilocarpine • For treating NVCs, these drugs have – Limited effectiveness – Unacceptable side effects © 2008 Ocularis Pharma - Confidential March, 2008 Page 42
  • 43. Ocularis Pharma Appendix 3 Nyxol – Results of Recent Phase II Trial © 2008 Ocularis Pharma - Confidential March, 2008 Page 43
  • 44. Nyxol Eye Drops: OP-NYX-SNV Latest Study Completed – 10/08 • Single dose, Phase II study – 24 subjects (16 on drug, 8 on placebo) – Severe night vision complaints – Positive effect on LCVA with consensual pupillary light reflex • Measurement – Primary endpoint - Contrast Sensitivity – High & low contrast visual acuity – Wavefront aberrometry – Subjective questionnaire – Pupil size • Study goals – Demonstrate Nyxol Eye Drops work and are safe – Compare measurement techniques © 2008 Ocularis Pharma - Confidential March, 2008 Page 44
  • 45. Nyxol Eye Drops: OP-NYX-SNV • Co-Principal Investigators – Dr. Marguerite McDonald – Dr. Eric Donnenfeld • Study Site - Ophthalmic Consultants of Long Island – 25 eye docs, 7 offices – Largest ophthalmic practice in New York – Full time clinical research staff • Study status – 47 subjects screened, 24 enrolled – First subject enrolled 8/14/07 – Last subject completed 10/30/07 – Data analysis continuing – Study report available early 2008 © 2008 Ocularis Pharma - Confidential March, 2008 Page 45
  • 46. Preliminary Analysis OP-NYX-SNV Study Demographics - 24 Total Subjects – Gender • 7 Male • 17 Female – Age • 14 45 & Under • 10 Over 45 – Type • 19 Night Myopes • 5 Post-surgical – 3 LASIK – 1 RK – 1 IOL © 2008 Ocularis Pharma - Confidential March, 2008 Page 46
  • 47. Nyxol Eye Drops: OP-NYX-SNV Subject 002 Demographics • Female, 38 years old, night myopia (no surgery) • Night vision problems – Glare – Halos – Depth perception • Limits night driving © 2008 Ocularis Pharma - Confidential March, 2008 Page 47
  • 48. OP-NYX-SNV: Subject 002 Pre- and Post-Dose OD OS Pre-Dose Pupil Size (mm) 7.5 7.8 LCVA 20/53 20/53 Ability to See? Lot of difficulty Post-Dose Pupil Size (mm) 5.2 5.1 LCVA 20/17 20/15 Change in Ability to See? Much better © 2008 Ocularis Pharma - Confidential March, 2008 Page 48
  • 49. Contrast Sensitivity Methodology © 2008 Ocularis Pharma - Confidential March, 2008 Page 49
  • 50. Contrast Sensitivity Subject 002 OD FACT Pre Dose FACT Post-Dose © 2008 Ocularis Pharma - Confidential March, 2008 Page 50
  • 51. Contrast Sensitivity Subject 002 OS FACT Pre Dose FACT Post Dose © 2008 Ocularis Pharma - Confidential March, 2008 Page 51
  • 52. Nyxol Eye Drops: OP-NYX-SNV Subject 002 • Subject 002 went from being functionally blind at night to being able to see well • Substantial improvement in all measures – Contrast Sensitivity Well below normal to high normal Exceeds FDA efficacy criteria – LCVA 20/53 to 20/17 or better – Snellen acuity 1 line of improvement – Subjective “Lot of difficulty” to “much better” © 2008 Ocularis Pharma - Confidential March, 2008 Page 52
  • 53. OP-NYX-SNV Study Contrast Sensitivity – Active Pre vs Post P < .05 P < .05 7 6 P < .001 5 Patch Units 4 P < .001 Pre 3 P < .001 Post 2 1 0 1.5 3 6 12 18 Spatial Frequency – Cycles/Degree © 2008 Ocularis Pharma - Confidential March, 2008 Page 53
  • 54. Contrast Sensitivity Active Subjects FACT Pre-Dose FACT Post-Dose © 2008 Ocularis Pharma - Confidential March, 2008 Page 54
  • 55. Contrast Sensitivity Active Subjects 45 & Under FACT Pre Dose FACT Post Dose © 2008 Ocularis Pharma - Confidential March, 2008 Page 55
  • 56. Individual Subject Analysis Change in FACT Patch Units Contrast Sensitivity - Active Contrast Sensitivity - Placebo 8 8 7 7 6 6 5 5 Delta Patches-Pre vs Post Delta Patches-Pre vs Post 4 4 3 3 2 2 1 1 0 0 1 2 3 4 5 1 2 3 4 5 -1 -1 -2 -2 -3 -3 Frequencies Frequencies © 2008 Ocularis Pharma - Confidential March, 2008 Page 56
  • 57. Mesopic Low Contrast Visual Acuity p < .001 12 p < .001 10 Change in Letters Read 8 p < .05 6 4 2 0 Pre vs Post Active vs Placebo Pre vs Post <45 © 2008 Ocularis Pharma - Confidential March, 2008 Page 57
  • 58. Wavefront Acuity Map RMS Error NS P < .001 1.5 1.25 RMS Error Units µ 1 0.75 Pre Post 0.5 0.25 0 Placebo Active © 2008 Ocularis Pharma - Confidential March, 2008 Page 58
  • 59. Subjective Change in Night Vision 100% 80% 60% Placebo 40% Active 20% 0% Much Better Same Worse Much Better Worse © 2008 Ocularis Pharma - Confidential March, 2008 Page 59
  • 60. Reduction in Pupil Diameter 1.50 p < .0001 p<.0001 Reduction in Pupil Diam mm 1.25 1.00 0.75 0.50 0.25 0.00 Pre vs Post Active vs Placebo © 2008 Ocularis Pharma - Confidential March, 2008 Page 60
  • 61. Redness Severe 100 Moder- 75 NS p<0.001 Pre Slight Units 50 Post 0-100 25 Trace None 0 Placebo Active © 2008 Ocularis Pharma - Confidential March, 2008 Page 61
  • 62. Intraocular Pressure NS P < .001 14 12 10 IOP mm Hg 8 Pre 6 Post 4 2 0 Placebo Active © 2008 Ocularis Pharma - Confidential March, 2008 Page 62
  • 63. Systolic Blood Pressure 150 125 100 BP mm Hg 75 Pre Post 50 25 0 Placebo Active © 2008 Ocularis Pharma - Confidential March, 2008 Page 63
  • 64. Diastolic Blood Pressure 100 80 BP mm Hg 60 Pre 40 Post 20 0 Placebo Active © 2008 Ocularis Pharma - Confidential March, 2008 Page 64
  • 65. OP-NYX-SNV • Study Summary – Nyxol Eye Drops improve night vision • Clinically meaningful • Statistically significant – Results consistent across all endpoints • Contrast Sensitivity • High & Low Contrast Visual Acuity • Wavefront • Subjective questionnaire • Pupil size – Nyxol Eye Drops safe and well tolerated © 2008 Ocularis Pharma - Confidential March, 2008 Page 65
  • 66. Ocularis Pharma Appendix 4 NOVA Study Results © 2008 Ocularis Pharma - Confidential March, 2008 Page 66
  • 67. Night Optics and Vision Assessment (NOVA) Study Design • Non-therapeutic epidemiological study • 100 subjects (20 in each of 5 groups) with complaints of night vision disturbances – Post refractive surgery – High myopia/astigmatism – Contact lens wearers – Glasses only at night – Cataracts • Endpoints measured prior to and during illumination of the contralateral eye (consensual pupillary light reflex) – Pupil diameter – High and low contrast visual acuity – Subjective questionnaire © 2008 Ocularis Pharma - Confidential March, 2008 Page 67
  • 68. NOVA Study Result • 4 of 5 groups show significant improvement with smaller pupils in dim light – Post refractive surgery – High myopia/astigmatism – Contact lens wearers – Glasses only at night (night myopia) • Small fraction of cataract patients reported improvement © 2008 Ocularis Pharma - Confidential March, 2008 Page 68
  • 69. NOVA Study Smaller Pupils Improve Night Vision © 2008 Ocularis Pharma - Confidential March, 2008 Page 69
  • 70. NOVA Study Smaller Pupils Improve Visual Acuity © 2008 Ocularis Pharma - Confidential March, 2008 Page 70
  • 71. Population Study Design • Epidemiological study • Objectives are to determine – Incidence of night vision disturbances in the normal population – Spectrum of severity of night vision disturbances – Benefit derived from making pupils smaller • Endpoints measured prior to and during illumination of the contralateral eye (consensual pupillary light reflex) – Contrast sensitivity – High and low contrast visual acuity – Pupil size – Subjective questionnaire • Study size, centers, timing - TBD © 2008 Ocularis Pharma - Confidential March, 2008 Page 71
  • 72. Ocularis Pharma Appendix 5 Optometrist Survey Results © 2008 Ocularis Pharma - Confidential March, 2008 Page 72
  • 73. Optometrist Night Vision Survey • 13 questions asked on optometrist experience with night vision complaints • 35 optometrists in Milwaukee area surveyed • Conducted by Milwaukee Market Research • Completed March, 2008 © 2008 Ocularis Pharma - Confidential March, 2008 Page 73
  • 74. Average Patients Seen Per Month 300 250 200 150 100 50 0 Survey National Average © 2008 Ocularis Pharma - Confidential March, 2008 Page 74
  • 75. Services Provided 3% 5% 4% 9% Eyeglasses/Contacts Allergy/Dry Eye Glaucoma Pre/Post Surgery Other 79% © 2008 Ocularis Pharma - Confidential March, 2008 Page 75
  • 76. Night Vision Complaints 30% 25% 20% 15% 10% 5% 0% Unprompted Prompted © 2008 Ocularis Pharma - Confidential March, 2008 Page 76
  • 77. Symptoms Cited by Patients with NVCs 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Night Glare Halos Starbursts Sensitivity Depth Ghosting Driving Perception Difficulty © 2008 Ocularis Pharma - Confidential March, 2008 Page 77
  • 78. Potential Causes of NVCs 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Night Cataracts Dry Eye Post- Post-IOL Back of Myopia LASIK the Eye © 2008 Ocularis Pharma - Confidential March, 2008 Page 78
  • 79. What Drugs Do ODs Prescribe 80% 70% 60% 50% 40% 30% 20% 10% 0% Alphagan P Pilocarpine Artificial Tears None © 2008 Ocularis Pharma - Confidential March, 2008 Page 79
  • 80. What Devices Do ODs Prescribe 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Eyeglasses Tinted Anti Reflective Look Away Glasses Coating © 2008 Ocularis Pharma - Confidential March, 2008 Page 80
  • 81. What Percent Would Benefit? What Percent Would OD Prescribe? 40% 35% 30% 25% 20% 15% 10% 5% 0% % Benefit % Prescribe © 2008 Ocularis Pharma - Confidential March, 2008 Page 81
  • 82. Price and Prescriber • Price – Our market model assumes $13 per month – Survey says patients would pay $24 per month for this product, almost double our assumed price • Likely Prescribers 1 Optometrist 2 Refractive Surgeon 3 Ophthalmologist © 2008 Ocularis Pharma - Confidential March, 2008 Page 82
  • 83. Optometrist Survey Summary • 28% of patients would complain about night vision, if asked • Treat NVCs with drugs – 70+% Artificial tears – <25% Glaucoma meds with pupil reduction side effect • Treat NVCs with devices – 45% Eyeglasses – 45% Antireflective coating – 26% Tinted glasses • Who would benefit from Nyxol™ Eye Drops? – 35% of NVC sufferers • Who would get Nyxol scrips? – 39% of NVC sufferers © 2008 Ocularis Pharma - Confidential March, 2008 Page 83
  • 84. Ocularis Pharma Appendix 6 Recent Phentolamine Approval © 2008 Ocularis Pharma - Confidential March, 2008 Page 84
  • 85. Novalar Pharma & Phentolamine Mesylate • Novalar Pharma – San Diego based, founded in 2000 – Financed by Domain, NEA, SR One and Montreux – Focused on drugs for dentristry • OraVerse® for Injection (phentolamine mesylate) – Approved for use by FDA May, 2008 – Indicated for reversal of dental anesthesia – Labeled for adults and pediatrics (>6 years old) – Lifestyle drug, reduces time of numbness by 50% – 4 use patents, 1 formulation patent – Will launch in October, 2008 with own sales/marketing team – Injectable dosage form distinct from Nyxol® Eye Drops © 2008 Ocularis Pharma - Confidential March, 2008 Page 85
  • 86. Implications for Nyxol® Eye Drops Program • Novalar’s success with OraVerse demonstrates phentolamine mesylate can be: – Formulated in solution with 3 year stability – Manufactured (API and drug product) under cGMP – Shown to be safe in animals and man • Approved for adults and children (6 and older) • FDA required tox and safety to be “squeaky clean” for approval of this lifestyle drug – Approved by FDA under modern regulations (last approved in 1952) Conclusion: Results in a major reduction in risk, cost and time to market for Nyxol Eye Drops development © 2008 Ocularis Pharma - Confidential March, 2008 Page 86
  • 87. Phentolamine Mesylate Comparison of Dosage Forms & Systemic Safety Nyxol® Eye Drops OraVerse® Injection Regitine® Injection Indication Treatment of Reversal of Diagnosis of night vision complaints dental anesthesia pheochromocytoma Concentration 1.0% solution 0.0235% solution 0.5% solution 10 mg/mL 0.235 mg/mL 5 mg/mL Route of Admin Corneal surface Submucosal Intravenous Delivered Dose 1.0 mg 0.4 mg 5.0 mg Systemic Take Up % 10% (est) 100% 100% Systemic Dose 0.1 mg 0.4 mg 5.0 mg Fraction of IV Dose % 2% 8% 100% Conclusion: Nyxol Eye Drops should have systemic safety better than or equal to OraVerse © 2008 Ocularis Pharma - Confidential March, 2008 Page 87
  • 88. Ocularis Pharma Appendix 7 Clinical Study: HOA Analysis © 2008 Ocularis Pharma - Confidential March, 2008 Page 88
  • 89. HOA Analysis Avg Change Pre- to Post- Drug © 2008 Ocularis Pharma - Confidential March, 2008 Page 89