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Inspire Pharmaceuticals is undertaking a corporate restructuring designed to allow the company to focus on its eye-care business.
Raleigh, NC-Inspire Pharmaceuticals is undertaking a corporate restructuring designed to allow the company to focus on its eye-care business.
The restructuring follows the company’s decision to discontinue development of its cystic fibrosis agent, denufosol tetrasodium.
“We conducted a strategic evaluation of our operations following the recent announcement of the disappointing results with our cystic fibrosis program and believe the prudent strategy for Inspire is to leverage our eye-care business and discontinue our pulmonary therapeutic focus,” said Adrian Adams, president and chief executive officer of Inspire.
“Therefore, we are implementing a substantial corporate restructuring that we anticipate will enable us to drive toward profitability and positive cash flow by significantly reducing our cost base and cash burn,” Adams said. “Our eye-care business continues to generate an attractive revenue stream from growth in our anchor product, [azithromycin ophthalmic solution 1% (Azasite)] for bacterial conjunctivitis, and royalties from other ophthalmic products.”
According to Inspire, the corporate restructuring includes a workforce reduction of about 65 positions, or 27% of total headcount, which represents 45% of non-sales force headcount. Functions primarily affected will be research and development, manufacturing and technical operations, and general and administrative. Minimal changes will occur to the commercial infrastructure, and no reductions to Inspire's specialty eye-care sales force are planned.