InSite Vision audit shows recurring loss

InSite Vision (Alameda, California) reported that the company's annual report on Form 10-K included an explanatory paragraph by its independent auditors in their audit report referring to its recurring operating losses and a substantial doubt about the company's ability to continue as a going concern. This audit report, dated and filed with the Securities and Exchange Commission on March 15, related to the company's financial statements for the fiscal year ended Dec. 31, 2006. The company said the opinion is consistent with the previous four reporting years.

InSite Vision is an ophthalmic company primarily focused on developing therapies that treat ocular infections, glaucoma and retinal diseases. InSite Vision's lead product is AzaSite, a topical anti-infective which targets infections of the eye. AzaSite contains the drug azithromycin, a broad-spectrum antibiotic formulated with DuraSite, InSite Vision's patented drug-delivery vehicle, which offers the benefit of a less frequent dosing regimen, which is attractive to both the eye-care patient and physician.

InSite Vision said it received an up-front license fee of $13 million in February from the licensing agreement with Inspire Pharmaceuticals for AzaSite (1% azithromycin). InSite Vision used a portion of the license fee to repay its senior secured notes, with a principal balance of $6.3 million, issued in December 2005 and January 2006. The agreement calls for an additional $19 million milestone payment to InSite Vision contingent on approval of an NDA for AzaSite by the FDA.

Illumina to consolidate operations

Illumina(San Diego) said that it intends to consolidate its operations in Wallingford, Connecticut, into its facilities in San Diego. The Wallingford site was originally established in connection with the acquisition of CyVera and has supported the development and manufacture of the BeadXpress system, which was launched in March.

The consolidation is scheduled to be completed over the course of 2007. Upon completion, all manufacturing and development activities related to the BeadXpress system will continue in San Diego. As a result of the transition, Illumina will incur charges of about $2 million.

"With the completion of our acquisition of Solexa, we took the opportunity to evaluate all of our operations. We determined that consolidating the Wallingford operations into San Diego will provide us with efficiencies from both the manufacturing and product development perspective," said Jay Flatley, president/CEO.

Illumina makes tools for the analysis of genetic variation and function.

IsoRay stock now listed on ASE

IsoRay (Richland, Washington) reported that its common stock has been approved for listing on the American Stock Exchange (ASE). Its common stock is expected to begin listing on the American Stock Exchange under the ticker symbol ISR on Thursday.

IsoRay is a medical isotope company that focuses on brachytherapy solutions for prostate cancer and other malignant tissue cancers through use of its Cesium-131 radioisotope. Cesium-131 is the most significant scientific advancement in prostate cancer brachytherapy in more than 20 years, according to its maker. IsoRay, through it subsidiary, IsoRay Medical, produces the Cesium-131 brachytherapy seed currently used to treat prostate cancer.

"This listing represents another important milestone for IsoRay and its shareholders," said Roger Girard, CEO and chairman of IsoRay. "We believe that listing our shares on the American Stock Exchange will improve the visibility of IsoRay as well as increase the liquidity of its shares."

In March the company completed $16.5 million in financing led by Punk, Ziegel & Co. and Maxim Group.