OMS103HP is one of Omeros' two lead product candidates and is in a clinical program evaluating OMS103HP's safety and ability to reduce pain and improve postoperative joint function following arthroscopic partial meniscectomy surgery. We believe that OMS103HP will, if approved, be the first commercially available drug product for the improvement of function following arthroscopic surgery.

OMS103HP is added to standard arthroscopic irrigation solutions and perfused through the joint during surgery. Each active ingredient in OMS103HP was selected for its anti-inflammatory action, and each agent interacts with discrete molecular targets involved in the acute inflammatory response.

In 2010 we completed a successful Phase 2 trial in patients undergoing partial meniscectomy surgery that demonstrated statistically significant clinical benefits in functional recovery, range of motion and pain reduction. We are now conducting a Phase 3 clinical program evaluating OMS103HP in patients undergoing partial meniscectomy surgery. We expect data from the first Phase 3 clinical trial in this program in the second half of 2012.