ALAMEDA, Calif.—InSite Vision (OTCBB:INSV), an ophthalmic Pharmaceutical company, announced Friday that its board of directors has determined that the previously announced unsolicited offer from a multi-national pharmaceutical company to acquire InSite for $0.25 per share in an all-cash transaction constitutes a “company superior proposal” compared with InSite’s previously announced definitive agreement with QLT dated (NASDAQ: QLTI) (TSX: QLT) June 8, 2015.

Under the terms of the QLT merger agreement, QLT would acquire InSite in an all-stock transaction in which shareholders of InSite will receive 0.048 QLT shares for each InSite share they hold.

The bidder, which is unnamed, supplemented its proposal with a definitive merger agreement and definitive loan documents which it is prepared to execute upon InSite’s termination of the QLT merger agreement, according to a statement issued by InSight Vision on Aug. 21. Under the loan documents, the Bidder would lend InSite sufficient funds for InSite to pay off its existing loan from QLT and to operate InSite’s business through the end date of the definitive merger agreement.

InSite has notified QLT of the InSite board of directors’ determination, and pursuant to the QLT merger agreement, QLT has the option until 5:00 p.m. PDT, on Wednesday, Aug. 26, 2015 (“Negotiation Period”) to negotiate a possible amendment of that agreement to match or exceed the bidder’s offer.