Question-and-Answer Session
Unidentified Analyst
What is the status of the CEO search?
Louis Drapeau
As many of you know, we've engaged an executive recruitment firm that's been conducting an active search. We've had a lot of interest in the position and identified several exceptional candidates. In order to make the most informed decision possible, on behalf of the shareholders the board has decided to first evaluate the target opportunities developed through our strategic process with our investment bankers prior to putting a new CEO in place.
During this period I have assumed the responsibilities of interim CEO, including overseeing the development and implementation of our go forward strategy, much as I did previously via [maran].
Unidentified Analyst
What is Inspire doing to penetrate the primary care and pediatric markets in the United States with AzaSite?
Louis Drapeau
Inspire has made the strategic position to focus their AzaSite commercialization efforts on eye care doctors. Yesterday they announced that they were planning to start two Phase II clinical trials for AzaSite to treat Blepheritis. If successful this new indication could significantly expand the use of AzaSite in this indication.
While we continue to believe that the primary care and pediatric markets for AzaSite are very attractive, Inspire has not been able to find and accept a commercial partner or contract sales organization that will address these markets on terms that would be satisfactory.
Unidentified Analyst
What are you doing to market the stock?
Louis Drapeau
Well we like our stockholders are disappointed with the performance of our stock and cannot control stock market activity. We are focused on building a strong successful company and long-term stockholder value and to that end have undertaken the many corporate and product focused initiatives discussed today.
Unidentified Analyst
What are you doing to advance the company's intellectual property?
Louis Drapeau
We are in the process of filing patents for newly developed IP in the DuraSite, AzaSites, and corticosteroid this month. This IP was developed work in the past six months.
Unidentified Analyst
What is ISV doing in terms of a Plan B, in the event that Inspire is not able to deliver the necessary sales for AzaSite?
Louis Drapeau
Under our agreement with Inspire they are required to pay InSite certain minimum royalties beginning in the third quarter of 2009, and ending five years later. While the amounts of these minimum royalties have not been disclosed, they are substantial. Should AzaSite not deliver the necessary sales to provide for these minimum royalties and Inspire does not pay us the minimum required royalty, Inspire would be in breach of the agreement. If the breach is not cured, the product would be returned to InSite.
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