Another ophthalmic condition we hope to address is mac- ular edema, or swelling of the retina associated with several diseases, including diabetic retinopathy. A common cause of vision loss in patients with retinal disease, macular edema affects over 2.5 million patients worldwide. Through the Oculex acquisition, Allergan took over development of POSURDEX, a drug delivery system that releases dexam- ethasone into the vitreous, or the space behind the lens. We are initiating Phase III studies for POSURDEX in 2004. DRY EYE. Dry eye disease involves abnormalities and  deficiencies in the tear film, leading to insufficient eye lubrication. Until 2003, the only eye drop physicians could recommend was lubricating tears to soothe patients’ eyes. Then Allergan launched RESTASIS (cyclosporine ophthalmic emulsion 0.05%), the first and only therapy for patients with keratoconjunctivitis sicca (KCS), whose tear production  is suppressed, presumably due to ocular inflammation. New data presented at the 2003 American Academy of Ophthalmology meeting showed that RESTASIS was similarly effective in patients with Sjögren’s-associated dry eye and non-Sjögren’s dry eye. A versatile drug delivery system that can get drug to  targeted areas in the eye will be critical to the success of  our retina program. In 2003, Allergan acquired Oculex Pharmaceuticals, Inc. and its bioerodable, extended-release drug delivery system. This technology is expected to be used to deliver a number of our retina compounds, including the tyrosine kinase inhibitors and Panzem. Allergan is advancing several novel approaches for the treatment of this devastating disease. One program focuses on identifying small molecule inhibitors of growth factor  signaling called tyrosine kinase inhibitors. Another is a  collaborative effort with EntreMed, Inc. to develop Panzem (2-methoxyestradiol), a small molecule angiogenic inhibitor used to block abnormal blood vessel formation in the back  of the eye. Finally, we are investigating the use of oral tazarotene, the highly selective retinoid agonist that serves as the cornerstone of our skin care programs, as a treatment for ARMD. OPHTHALMOLOGY – RETINAL DISEASE. Age-related macular degeneration (ARMD) is the leading cause of blind- ness in people over the age of 50. Each year, approximately 10 percent of the estimated 13 million people worldwide with macular degeneration will suffer severe central vision loss due to the wet or advanced form of ARMD. Allergan is proud of its legacy of applying innovative science and technology to unmet medical needs in specialty markets – ophthalmology, neuromodulators and dermatology. This legacy began, and continues today, with scientists, researchers and development  specialists dedicated to creating products and technologies to enhance patients’ quality of life. We are looking ahead to important developments in our specialty areas. research and development