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

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1. Names of Reporting Persons.

Palo Alto Investors, LLC

2. Check the Appropriate Box if
a Member of a Group (See Instructions)

(a)

(b) ___X__

3. SEC Use Only

4. Citizenship or Place of Organization
California

Number of

Shares

Beneficially

Owned by

Each Reporting

Person With:

5. Sole Voting Power 0
6. Shared Voting Power 12,036,349
7. Sole Dispositive Power 0
8. Shared Dispositive Power 12,036,349

9. Aggregate Amount Beneficially
Owned by Each Reporting Person 12,036,349

10. Check if the Aggregate Amount
in Row (9) Excludes Certain Shares (See
Instructions) ______

11. Percent of Class Represented
by Amount in Row (9) 17.43%

12. Type of Reporting Person (See
Instructions) OO, IA

4

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