2) The company recently signed a major licensing contract with Bausch and Lomb

3) The CEO hinted at closing a deal with a major pharmaceutical company prior to the close of this quarter

4) There is a very similar company that is set to IPO for $20 this week

Insite Vision (Amex: ISV) is a small biotech company focused on bringing innovative pharmaceutical products to the ophthalmologic market. The company focuses on developing genetically based technology for the diagnosis, prognosis and management of ophthalmic pharmaceutical diseases based on its proprietary DuraSite eyedrop drug delivery technology.

The company is well positioned in the Biotech market with several products approaching final FDA Trials

The company’s main focus is drug delivery to the eye. The difficulty with this process is coming up with a product that will hold the drug to be delivered and simultaneously not irritate the eye while allowing enough contact time to be effective. Many current day eye formulations require multi-day dosing, meaning that the eye drop must be used 3-4 times per day in order to be effective. However, with ISV’s patented Durasite compound, it is possible to dose less frequently give the products stabilizing properties.

The company is focusing its commercial efforts and research and development on targeted market introduction of its OcuGene glaucoma genetic test and expanding its ISV-900 technology for the diagnosis, prognosis and management of glaucoma. Other products include ISV-205, a DuraSite formulation for the treatment of glaucoma; ISV-401, a DuraSite formulation of azithromycin; ISV-403, a DuraSite formulation of a fourth-generation fluoroquinolone; ISV-014, a retinal drug delivery device, and treatments for diabetic retinopathy and macular degeneration.

The company recently signed a major licensing contract with Bausch and Lomb

Up until last month there was some concern whether the company would be able to complete FDA trials of its 401 product given its financial situation. However, ISV recently signed a deal with Bausch and Lomb for their 403 product which guarantees the company enough cash to complete the product trials and covering all expenses while guaranteeing licensing fees upon coming to market. The B&L release can be found here: InSite Vision Completes ISV-403 Sale to Bausch & Lomb

The CEO hinted at closing a deal with a major pharmaceutical company prior to the close of this quarter

This is the most exciting news for ISV shareholders. Recently at last quarter’s conference call, Dr. Kumar ISV’s CEO announced that the company was in talks with a major pharmaceutical company regarding its 401 Antibiotic product. The CEO went on to say that he expected a deal to close prior to the closing of the current quarter. Given this information, if a deal is indeed signed as alluded to in the last conference call the shares of ISV may see 100% type gains. For a stock with such a strong pipeline to be trading as such low levels is simply a true value. We at ******** heel if the deal is signed that the stock will see a double from the current share price.

There is a very similar company that is set to IPO for $20 this week

Eyetech Parmaceuticals (Nasdaq EYET) is set to IPO late this week or early next week. The company is a direct competitor to ISV and we feel ISV is a much better value. New York City based Eyetech Pharmaceuticals is developing a drug that may give two million Americans suffering from age-related macular degeneration a chance to retain their vision. Eyetech (EYET) is expected to offer 6.5 million shares to the public at a range of $18-$20 per share and has a proposed market value of $820 million. Joint book-running managers Merrill Lynch and Morgan Stanley are expected to price the deal this week. Once shares of EYET begin trading we expect interest to spill over into other biotechs focusing in these markets and given the share price on ISV at $.80 and its strong pipeline we feel it should rise rapidly.