Advanced Inhalation Research (AIR) has developed a proprietary drug delivery method composed of dry powders that are ideally suited for delivery to the lungs. The unique characteristics of these microparticles allow them to be used for both systemic and local delivery of small molecule, pepetide, protein, and other macromolecular drugs. AIR was acquired by Alkermes, a specialty pharmaceuticals company, in February 1999. AIR currently has three announced products in the clinic: inhaled inform and inhaled human growth hormone in phase II clinical trials in partnership with Eli Lilly, and an inhaled form of epinephrine for anaphylactic shock in phase I clinical trials.