Inspire announces strategic corporate restructuring program, fourth-quarter operating results

RALEIGH, N.C. — Inspire Pharmaceuticals has announced plans to initiate a strategic corporate restructuring program designed to focus the company on eye care interests.

The plan includes a workforce reduction of approximately 65 positions, or 27% of the company's head count. Inspire expects the restructuring to reduce full-year 2011 non-cost of sales operating expenses by more than $40 million, according to a press release from the company.

"As a result of our prudent expense and cash flow management during the year, we were able to pay off our term loan facility and end the year with a strong balance sheet with no debt," Adrian Adams, president and CEO of Inspire, said in the release. "The strategic corporate restructuring announced today will allow us to focus on our eye care business and drive toward profitability and positive cash flow by significantly reducing our cost base and cash burn."

Inspire reported a fourth-quarter net loss of $4.3 million, or $0.05 per share, compared to a net loss of $2.6 million, or $0.03 per share, for the same period in 2009, according to the release.

For the full year, Inspire recorded a net loss of $35.4 million, or $0.43 per share, compared to a net loss of $40 million, or $0.60 per share, posted for the full year 2009, according to the release.

Fourth-quarter revenue totaled $30.3 million, up 2% from $29.6 million for the fourth quarter of 2009. Specifically, revenue from the sales of AzaSite (1% azithromycin ophthalmic solution) rose 9% to $13.2 million during the fourth quarter. Total product co-promotion and royalty revenue, including income from net sales of Restasis (0.05% cyclosporine A, Allergan) and co-promotion revenue from net sales of Elestat (0.05% epinastine HCl ophthalmic solution), dropped slightly to $15.9 million for the fourth quarter of 2010, according to the release.

Fourth-quarter 2010 revenue also included $1.25 million in collaborative research and development income stemming from a collaborative agreement with Santen Pharmaceutical related to the approval and launch in Japan of Diquas (diquafosol tetrasodium ophthalmic solution 3%) for treating dry eye disease.

Full-year revenue totaled $106.4 million, representing a 15% increase compared to $92.2 million for 2009. Specifically AzaSite revenue rose 22% to $42.7 million, while co-promotion and royalty revenues rose slightly to $62.5 million in 2010.

As of Dec. 31, 2010, Inspire recognized $94.3 million in cash, cash equivalents and investments.

Inspire expects 2011 aggregate revenue to fall between $80 million and $90 million.