13G Filing: Palo Alto Investors and Alimera Sciences Inc (ALIM)

Item 5. Ownership of Five Percent
or Less of a Class.

 

If this statement is being filed to report the fact that as of the
date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check
the following [ ].

Item 6. Ownership of More than
Five Percent on Behalf of Another Person.

 

PAI LLC is a registered investment adviser and is the general partner
and investment adviser of Healthcare Master and Healthcare Master II and other investment limited partnerships,
and is the investment adviser to other investment funds. PAI LLC’s clients have the right to receive or the power to direct the
receipt of dividends from, or the proceeds from the sale of, the Stock. No individual client, other than Healthcare Master and Healthcare
Master II separately holds more than five percent of the outstanding Stock.

Item 7. Identification and Classification
of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company.

 

Not applicable.

Item 8. Identification and Classification
of Members of the Group.

Dr. Lee and Dr. Yun co-manage PAI LLC. The Filers are filing this
Schedule 13G jointly, but not as members of a group, and each of them expressly disclaims membership in a group. Each Filer disclaims
beneficial ownership of the Stock except to the extent of that Filer’s pecuniary interest therein. In addition, the filing of this
Schedule 13G on behalf of Healthcare Master and Healthcare Master II should not be construed as an admission
that any of them is, and each disclaims that it is, a beneficial owner, as defined in Rule 13d-3 under the Securities Exchange
Act of 1934, of any of the Stock covered by this Schedule 13G.

Item 9. Notice of Dissolution
of Group.

Not applicable.

Item 10. Certification of PAI
LLC, Dr. Lee and Dr. Yun:

By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and
are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were
not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

Certification of Healthcare Master, Healthcare Master II:

By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or
influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant
in any transaction having that purpose or effect.