Ocular Therapeutix Reports Second Quarter 2020 Financial Results and Business Update Newly Published Physician Fee Schedules for 0356T for the Administration of Intracanalicular Inserts to Support Ongoing DEXTENZA Launch

Ocular Therapeutix Reports

Second Quarter 2020 Financial Results and Business Update

Newly Published Physician Fee Schedules

for 0356T for the Administration of Intracanalicular Inserts to Support Ongoing DEXTENZA Launch

May Financing Yields $48.3 Million in

DEXTENZA Net Product Revenue in Second

Quarter of $1.4 million; Billable In-Market Sales Record Achieved in June

BEDFORD, Mass. -(BUSINESS WIRE)-August 7, 2020-Ocular

Therapeutix , Inc. (NASDAQ: OCUL), a biopharmaceutical company focused on the formulation, development, and commercialization

of innovative therapies for diseases and conditions of the eye, today announced financial results for the second quarter ended

June 30, 2020 and provided a business update.

"Despite the challenges caused by the global pandemic,

it has been a very productive quarter for Ocular Therapeutix," said Antony Mattessich, President and CEO. "Our clinical

programs continue to support potential product profiles that, if approved, we believe could become the standards-of-care in the

treatment of Wet AMD, glaucoma and ocular surface diseases including dry-eye disease and allergic conjunctivitis. We also added

a new program for the treatment of episodic dry eye. We have positioned ourselves to potentially enter Phase 2 trials on four

major programs within the next 12 months that could, if approved, compete in some of the largest global ophthalmology markets.

On the sales side, despite the global COVID-19 pandemic, we saw a welcome bounce back in DEXTENZA sales

with nearly 2,300 in-market units sold in June, exceeding our previous monthly record by 40% and eclipsing $1 million of in-market

sales in a calendar month for the first time. With a new rebate program and the establishment of physician reimbursement fee schedules

for the insertion of DEXTENZA at two Medicare Administrative Contractors that cover approximately 30% of the Medicare population,

we expect, subject to the potential impact of the pandemic, adoption trends to accelerate in the second half of the year."

Announced published physician fee schedules for the administration

of intracanalicular inserts. In July, the Company announced that Novitas Solutions and First Coast, two of seven Medicare

Administrative Contractors (MACs) representing approximately 30% of all Medicare beneficiaries, established physician fee schedules

for procedure code 0356T for the administration of drug-eluting intracanalicular inserts, including DEXTENZA (dexamethasone ophthalmic

insert) 0.4mg, effective July 1, 2020. Physicians in these geographies seeking reimbursement for the administration of DEXTENZA

are now eligible to be paid per the established local fee schedule. In addition, four of the remaining five MACs have retired their

non-coverage policies for 0356T, and the Company believes that these MACs may publish fee schedules in the near future.

Announced new product candidate (OTX-DED) to treat

episodic dry eye disease. There are approximately 8.6 million patients diagnosed with episodic dry eye disease in the

United States, according to Market Scope (2019 report). Many of these dry eye patients experience episodic flares of their

signs and symptoms which the Company believes are likely related to inflammation. Currently available topical steroids may

lead to adverse events such as elevated intraocular pressure (IOP) or cataracts if used chronically and all contain

preservatives which can cause ocular surface toxicity, resulting in itching and burning. OTX-DED, a new product candidate

with a lower dose of dexamethasone and a smaller insert size than DEXTENZA, is designed to offer these patients the

opportunity, if approved, to be treated with a non-abusable, physician-administered, preservative-free and hands-free steroid

therapy. Since OTX-DED has a lower concentration of dexamethasone compared with DEXTENZA, the Company is able to leverage the

DEXTENZA safety package generated to date and plans to file a Phase 2-enabling Investigative New Drug (IND) Application with

the U.S. Food and Drug Administration (FDA) by the end of 2020.

Amended collaboration with Regeneron for the development

of a suprachoroidal injection formulation of the FDA-approved VEGF trap aflibercept. In May, the Company amended its existing

collaboration with Regeneron to develop an extended-delivery, suprachoroidal injection formulation of the FDA-approved VEGF trap

aflibercept. Under the new amendment, Regeneron has agreed to compensate Ocular Therapeutix on a cost-plus basis for all work performed

under the pre-clinical portion of the collaboration. The back-end economics of the original agreement remain the same with the

potential for option exercise fees and milestone payments of $305 million and tiered, escalating royalties from the high single

digits into the low-to-mid teens.

Completed common stock financing. In May, the

Company raised $48.3 million, net of fees, from a public offering of stock. Cash and cash equivalents as of June 30, 2020 was $84.3

million and is expected to provide funding for at least the next twelve months.

OTX-TKI (axitinib intravitreal implant)

OTX-TKI is a bioresorbable, hydrogel implant incorporating axitinib,

a small molecule tyrosine kinase inhibitor with anti-angiogenic properties for the potential treatment of wet age-related macular

degeneration (wet AMD) and other retinal diseases. The Company is conducting a Phase 1, prospective, multi-center, open-label,

dose-escalation clinical trial in Australia intended to evaluate the safety, durability, tolerability, and biological activity

of OTX-TKI for the treatment of wet AMD. Two cohorts of six subjects each have been enrolled, a lower-dose cohort of 200 g

and a higher-dose cohort of 400 g.

OTX-TIC (travoprost intracameral implant)

OTX-TIC is a long-acting travoprost intracameral implant for

the treatment of patients with primary open angle glaucoma or ocular hypertension. The Company is conducting a Phase 1, prospective,

multi-center, open-label, dose-escalation clinical trial which is intended to evaluate the safety, biological activity, durability

and tolerability of OTX-TIC for the reduction of elevated IOP in patients with primary open angle glaucoma or ocular hypertension.

OTX-CSI (cyclosporine intracanalicular insert)

OTX-CSI is a long-acting

cyclosporine intracanalicular insert for the treatment of chronic dry eye disease. The Company has recently initiated a Phase 1,

open-label, single-center clinical trial in the United States to evaluate the safety, biological activity, durability, and tolerability

of OTX-CSI for the treatment of dry eye disease.

DEXTENZA (dexamethasone ophthalmic insert) 0.4 mg

DEXTENZA is an FDA-approved corticosteroid indicated for the

treatment of ocular inflammation and pain following ophthalmic surgery.

Second Quarter Ended June 30, 2020 Financial Results

believes that its existing cash and cash equivalents of $84.3 million as of June 30, 2020 will enable the Company to fund its planned

operating expenses, debt service obligations and capital expenditure requirements for at least the next twelve months. This estimate

is based on the Company's currently forecasted operating plan which includes estimates of anticipated cash inflows from DEXTENZA

and ReSure Sealant product sales and cash outflows from operating expenses. These

estimates are subject to various assumptions including those related to the severity and duration of the COVID-19 pandemic, a continuing

expected rebound in cataract surgeries in the third quarter of 2020 and beyond, the revenues and expenses associated with the commercialization

of DEXTENZA, variable expense reductions, the pace of the Company's research and clinical development programs, and other

aspects of the Company's business. We have based our estimate on assumptions that may prove to be wrong, and we could

use our capital resources sooner than we currently expect and would therefore need to raise additional capital to support our ongoing

operations or adjust our plans accordingly.

Conference Call & Webcast Information

Members of the Ocular Therapeutix management team will

host a live conference call and webcast today at 8:30 am Eastern Time to review the Company's financial results and provide

a general business update. The live webcast can be accessed by visiting the Investors section of the Company's website at

investors.ocutx.com. Please connect at least 15 minutes prior to the live webcast to ensure adequate time for any software download

that may be needed to access the webcast. Alternatively, please call (844) 464-3934 (U.S.) or (765) 507-2620 (International) to

listen to the live conference call. The conference ID number for the live call will be 6937647. An archive of the webcast will

be available until September 21, 2020 on the Company's website.

About DEXTENZA (dexamethasone ophthalmic

DEXTENZA is an FDA-approved corticosteroid indicated for the

treatment of ocular inflammation and pain following ophthalmic surgery. DEXTENZA is inserted in the lacrimal punctum and into the

canaliculus by the physician following ophthalmic surgery. A single DEXTENZA releases a 0.4 mg dose of dexamethasone for up to

30 days following insertion. DEXTENZA is preservative free, resorbable and does not require removal.

DEXTENZA is contraindicated in patients with active corneal,

conjunctival or canalicular infections. Prolonged use of corticosteroids may result in glaucoma with damage to the optic nerve,

defects in visual acuity and fields of vision. Steroids should be used with caution in the presence of glaucoma. Intraocular pressure

should be monitored during the course of the treatment. Corticosteroids may suppress the host response to, and increase the hazard

for and severity of, secondary bacterial, viral, or fungal infections. The use of steroids after cataract surgery may delay wound