Inspire reports $25.9 million net loss for first quarter, 35% rise in total revenue

DURHAM, N.C. — Inspire Pharmaceuticals reported a first-quarter net loss of $25.9 million, or $0.46 per share, compared with a net loss of $26.1 million, or $0.62 per share, for the first quarter of 2007, the company announced in a press release.

Inspire's first-quarter revenue totaled $9.7 million, up 35% from $7.2 million for the first quarter of 2007. Revenue from AzaSite (1% azithromycin ophthalmic solution), which was launched in August 2007, totaled $2.3 million.

First-quarter co-promotion revenue from net sales of Restasis (0.05% cyclosporine ophthalmic emulsion) totaled $7.4 million, up 54% compared with $4.8 million in the same period last year, according to the release.

A sum of $3.8 million in co-promotion revenue from net sales of Elestat (0.05% epinastine HCl ophthalmic solution) was deferred for the quarter, as compared with $2.4 million in deferred Elestat revenues for the first quarter of 2007. Under Inspire's co-promotion agreement for Elestat, this deferred revenue will be recognized in subsequent quarters of 2008 once net sales targets for Elestat are met, the release said.

Operating expenses for the quarter totaled $35.6 million, up 5% compared with $33.9 million for the same period in 2007. The boost was primarily attributable to increased sales and marketing expenses of $8.7 million due to personnel growth and costs associated with the commercialization of AzaSite. However, these increases were partially counterbalanced by an $8 million decline in research and development expenses, largely owing to a $13 million initial licensing fee paid to InSite Vision in the first quarter of 2007 to acquire exclusive commercialization rights for AzaSite.

Cash, cash equivalents and investments totaled $109.1 million for the quarter, reflecting a $30.6 million utilization of cash and investments, according to the release.