In July 2020, Zhaoke (Hong Kong) Ophthalmology Pharmaceutical Limited ("Zhaoke Hong Kong" or the "Company") and IACTA Pharmaceuticals, Inc. ("IACTA"), a U.S.-based ophthalmic-focused pharmaceutical company established to develop and commercialize innovative eyecare products, entered into a license agreement with IACTA for the license of certain patents and know-how relating to IC-265 and IC-270 in Greater China and certain Southeast Asia countries (including Brunei, Burma, Cambodia, Timor-Leste, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam) (the "Territory"). Both parties plan to collaborate in the development of IC-265 and IC-270 by establishing a joint development committee to oversee and steer the development of these assets.

IC-265, an eye drop composed of highly selective and potent Syk tyrosine kinase inhibitor with broad anti-inflammatory effects which has also shown general efficacy in reducing signs of allergic conjunctivitis. Since Syk is the critical starting point in the activation of the inflammatory cascade in the eye, the Syk tyrosine kinase inhibitor in IC-265 is able to block multiple downstream signaling pathways leading to different ophthalmic ailments, including dry eye disease ("DED").

The global prevalence of DED is estimated to be around 344 million and the estimated size of the global market is about US$7.7 billion by 2025. The incidence rate of DED in China is between 21% to 30%. It is similar to that in other Asian countries and higher than that in Europe and the U.S.. It is especially high in the northwestern regions of China such as Shaanxi, Qinghai, Xinjiang where the incidence rate can reach 59%. The high incidence rates represent a significant commercial opportunity in China and surrounding Asian markets that is further fueled by the popularity of smartphones and computers.

IC-270 is a fixed dose combination of IC-265 and an antihistamine agent for the treatment of inflammatory ophthalmic diseases including allergic conjunctivitis. The Company believes that by combining the two components, IC-270 will simultaneously address multiple key inflammatory symptoms in the eye in a fashion unattainable by current therapies. The Company will be spearheading its clinical development activities (and those of IC-265) required for regulatory approval in the Territory.

ABOUT IACTA PHARMACEUTICALS, INC.

IACTA is a California based ophthalmologic pharmaceutical company led by former executives from one of the leading eye care companies in the world, Allergan. IACTA currently has six products in development for major market opportunities. IACTA has two lead products, IC 265, for DED, and IC 270, for allergic conjunctivitis. Additional information on IACTA is available at www.iactapharma.com.