Inspire reports wider loss

Inspire Pharmaceuticals reported that its first-quarter loss widened even though the Durham drug development company's revenue nearly tripled from a year ago.

Losses increased to $14 million in the three months ended March 31, or 33 cents per share. The loss was partly because of a one-time $2.5 million payment Inspire made to buy the rights to a treatment for nasal allergies from Germany's Boehringer Ingelheim.

Analysts had expected a first-quarter loss of 31 cents per share, according to Thomson Financial.

Revenue was $5.5 million, up from $1.9 million a year ago. Higher sales of the dry-eye treatment Elestat and the allergy treatment Restasis accounted for part of the revenue increase. Inspire sells both products for its California partner Allergan and receives a portion of the proceeds.

Inspire also received a $1.25 million milestone payment in the first quarter because its partner Santen Pharmaceutical completed Phase II testing of diquafosol in Japan.

Diquafosol, an experimental dry-eye treatment, is the most advanced drug in Inspire's development pipeline. In the United States, diquafosol has come up short of regulatory approval twice and Inspire has raised the possibility that work on the drug will be halted.

On March 22, Inspire met with the Food and Drug Administration to discuss requirements diquafosol must meet for approval. The discussions continue and Inspire is still submitting information to regulators, Mary Bennett, the company's executive vice president of operations, told analysts today.

"Until we have something firm back from them, we can't give much of an update," Bennett said.

Inspire released its earnings before the market opened today. In mid-morning trading, the shares fell 16 cents to $4.85. The stock is down 33 percent in the past year.