InSite Vision Provides Announcement Regarding Auditors' Opinion
ALAMEDA, Calif., April 2 /PRNewswire-FirstCall/ --
As required by a recently
adopted rule of the American Stock Exchange, InSite Vision Incorporated today
announcedthat the Company's Annual Report on Form 10-K included an explanatory
paragraph by its independent auditors in their audit report referring to the
Company's recurring operating losses and a substantial doubt about the Company's
ability to continue as agoing concern. This audit report, which was dated March
12, 2004 and filed with the Securities & Exchange Commission on March 30, 2004,
related to the Company's financial statements for fiscal year ended December 31,
2003.
As previously announced on March 26, 2004, InSite Vision received approximately
$1.8 million, net of placement fees, from the initial closing of a total private
placement that will yield aggregate gross proceeds of $16.5 million if the final
closing occurs. The Company's ability to receive the remainder of the funds
will be subject to receipt of stockholder approval to increase the authorized
number of outstanding shares of InSite Vision common stock and to approve the
terms and other standard conditions of the transaction under American Stock
Exchange rules. InSite Vision will be seeking the necessary stockholder
approval at its annual meeting of stockholders, which is scheduled for June 1,
2004. If stockholder approval is received and the final closing of the March
private placement occurs, InSite Vision expects that it will have sufficient
funds to continue its operations until approximately the third quarter of 2005.
InSite Vision is an ophthalmic products company focused on ocular infections,
glaucoma and retinal diseases. In the area of glaucoma, the Company conducts
genomic research using TIGR and other genes. A portion of this research has
been incorporated into the Company's OcuGene(R) glaucoma genetic test for
disease management, as well as ISV-205, its novel glaucoma therapeutic. ISV-205
uses InSite Vision's proprietary DuraSite(R) drug-delivery technology, which
also is incorporated into the ocular infection product ISV-401, and InSite
Vision's retinal disease program. Additional information can be found at
http://www.insitevision.com/.
This press release herein may contain, among other things, certain statements of
a forward-looking nature relating to future events or the future business
performance of InSite Vision. Such statements entail a number of risks and
uncertainties, including but not limited to: InSite Vision's ability to obtain
stockholder approval and satisfy the other conditions to closing on the final
tranche of funding, InSite Vision's immediate need for significant additional
funding to continue its operations in the event that it does not consummate the
final closing, the effects of its expense control activities on its operations
and product development; its ability to obtain regulatory approval and market
acceptance of its products, OcuGene(R) glaucoma genetic test, ISV-401 and
ISV-205; InSite Vision's ability to maintain and develop additional
collaborations and commercial agreements with corporate partners, including
those with respect to ISV-401 and ISV-205; its reliance on third parties for the
development, marketing and sale of its products; the initiation and results of
preclinical and clinical studies; its ability to adequately protect its
intellectual property; and determinations by the U.S. Food and Drug
Administration, including those with respect to OcuGene, ISV-401 and ISV-205.
Reference is made to the discussion of risk factors detailed in InSite Vision's
filings with the Securities and Exchange Commission, including its annual report
on Form 10-K for the 2003. Any projections in this release are based on limited
information currently available to InSite Vision, which is subject to change.
Although any such projections and the factors influencing them will likely
change, InSite Vision undertakes no obligation to update the information. Such
information speaks only as of the date of this release. Actual events or
results could differ materially and no reader of this release should assume
later that the information provided today is still valid.
Note to Editors: OcuGene is written with a "small cap" G; if doing so is not
possible, please use an upper case G. InSite Vision Incorporated, InSite
Vision, DuraSite and OcuGene are trademarks of InSite Vision Incorporated. Other
trademarks that may be mentioned in this release are the intellectual property
of their respective owners.
For further information, please contact S. Kumar Chandrasekaran, CEO, or Sandra
Heine, Director of Finance, both of InSite Vision Incorporated, +1-510-865-8800;
or Investors, Bruce Voss, , or Jody Cain, , both of Lippert/Heilshorn &
Associates, Inc., +1-310-691-7100, or Media, Chenoa Taitt, , or Michael Hopkins,
, both of Lippert/Heilshorn & Associates, Inc., +1-212-838-3777, all for InSite
Vision Incorporated.
DATASOURCE: InSite Vision Incorporated
CONTACT: S. Kumar Chandrasekaran, CEO, or Sandra Heine, Director of
Finance, both of InSite Vision Incorporated, +1-510-865-8800; or investors,
Bruce Voss, , or Jody Cain, , both of
Lippert/Heilshorn & Associates, Inc., +1-310-691-7100, or media, Chenoa Taitt,
, or Michael Hopkins, , both of
Lippert/Heilshorn & Associates, Inc., +1-212-838-3777, all for InSite Vision
Incorporated
Web site: http://www.insitevision.com/