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Saturday, Apr 11, 2026

Ista Subpoenaed Over Eye Drug Marketing

Ista Pharmaceuticals Inc. has received a subpoena from the U.S. Attorney’s office in Buffalo, N.Y., requesting documents about its flagship Xibrom drug, according to a statement released Thursday.

Irvine-based Ista said prosecutors were asking for documents covering promotional, educational and other activities relating to Xibrom.

Xibrom, which accounts for more than 70% of Ista’s $60 million in yearly revenue, is used to treat eye inflammation after cataract surgery.

Ista said it would cooperate with the office’s request, but did not explain why prosecutors wanted the documents.

Shares of Ista took a dive earlier this month after the company said clinical trial results for a new version of Xibrom were disappointing. The original formulation of Xibrom comes off patent protection next year.

The company counted a recent market value of $68 million.

Ista also said it hired Cowen & Co. as a financial adviser to evaluate opportunities, including potential mergers and acquisitions.

Thomas Weisel Partners analyst Donald Ellis said that move meant that Ista probably was considering selling itself.

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