Clinical Trial Evaluating Technosphere® Insulin Versus Insulin Aspart in Subjects With Type 1 Diabetes Mellitus Over a 24-week Treatment Period

Phase 3 clinical trial designed to examine the efficacy and safety of inhaled prandial TI
Inhalation Power in combination with basal insulin versus insulin aspart in combination with
basal insulin in subjects with type 1 diabetes who are suboptimally controlled with their
current insulin regimens. This trial will employ a variety of methods to intensively manage
these subjects.

Inclusion Criteria:

- Men and women = 18 years of age

- Clinical diagnosis of type 1 diabetes mellitus for at least 12 months

- Body mass index (BMI) = 38 kg/m2

- Stable dose of basal/bolus insulin therapy for at least 3 months with an FPG
consistently < 220 mg/dL:

- HbA1c = 7.5% and = 10.0%

- Fasting C-peptide = 0.30 pmol/mL

- Subject willingness to not use CGM during the entire course of the trial

- Nonsmoking (includes cigarettes, cigars, pipes, and chewing tobacco) for the
preceding 6 months

- Negative urine cotinine test, defined as = 100 ng/mL

- Lung function tests: • Forced expiratory volume in 1 second (FEV1) = 70% Third
National Health and Nutrition Examination Survey (NHANES III) predicted

- Written informed consent

Exclusion Criteria:

- Total daily insulin dose = 2 IU/kg/day. History of insulin pump use within 3 months
of Screening or use of continuous glucose monitoring within 6 weeks of Screening

- History of inhaled insulin use in the previous 6 months

- Two or more unexplained severe hypoglycemic episodes within 3 months of Screening or
an episode of severe hypoglycemia between Visit 1 and Visit 2. Unexplained refers to
episodes of severe hypoglycemia that are not related to a dosing error, lack of or a
change in meal size, or related to additional/unanticipated exercise

- Any hospitalization or emergency room visit due to poor diabetic control within 6
months of Screening, or hospitalization or emergency room visit due to poor diabetic
control between Visit 1 and Visit 2

- Allergy or known hypersensitivity to insulin or to any of the drugs to be used in the
study, or a history of hypersensitivity to TI Inhalation Powder or to drugs with a
similar chemical structure

- History of recent blood transfusions (within previous 3 months), hemoglobinopathies,
or any other conditions that affect HbA1c measurements.

- History of COPD, asthma, or any other clinically important pulmonary disease (eg,
pulmonary fibrosis), or use of any medications for these conditions

- Any clinically significant radiological findings on screening chest x-ray

- Active respiratory infection within 30 days before Screening (subject may return
after 30 days from resolution for rescreening)

- Major organ system diseases, including: ? Seizure disorder; systemic autoimmune or
collagen vascular disease requiring previous or current treatment with systemic
corticosteroids, cytotoxic drugs, or penicillamine; cancer (other than excised
cutaneous basal cell carcinoma) or any history of lung neoplasms

- Current or previous chemotherapy or radiation therapy that may result in pulmonary
toxicity; use of medications for weight loss (eg, sibutramine, orlistat) within 12
weeks of Screening; treatment with amiodarone within 12 weeks of Screening

- Clinically significant abnormalities on screening laboratory evaluation or chest
x-ray

- Severe complications of diabetes, in the opinion of the PI, including symptomatic
autonomic neuropathy; disabling peripheral neuropathy; active proliferative
retinopathy; nephropathy with renal failure, renal transplant, or dialysis;
nontraumatic amputations due to gangrene; or vascular claudication

- Women who are pregnant, lactating, or planning to become pregnant during the clinical
study period; women of childbearing potential (defined as premenopausal and not
surgically sterilized or postmenopausal for fewer than 2 years) not practicing
adequate birth control. Adequate birth control is defined as using oral,
percutaneous, or transdermal contraceptives; condoms and diaphragms (double barrier)
with a spermicide; or intrauterine devices. Postmenopausal for this study includes
amenorrhea f

- Current drug or alcohol abuse or a history of drug or alcohol abuse that, in the
opinion of the PI, would make the subject an unsuitable candidate for participation
in the study

- Exposure to any investigational medications or devices within the previous 30 days
before study entry

- Unable to read or write, or unlikely to comprehend and follow the study protocol
procedures; lack of compliance with medication or procedures that, in the PI's
opinion, may affect the study data or subject safety and that precludes the subject
from participation in the study; or any other concurrent medical or major psychiatric
condition that, in the opinion of the PI, makes the subject unsuitable for the
clinical study or could limit the validity of the informed consent or impair the
subject'