Inspire chose not to sue generic applicants on eletriptan ANDA because of the losses incurred

Fourth quarter losses were narrower at Inspire Pharmaceuticals than analysts had expected thanks to strong sales of the company's drugs.
But the company, which remains unprofitable, says it will cut about 20 research positions as it seeks to preserve cash and focus on its most developed experimental treatments.
"Given the current economic and capital-raising environment, we are prioritizing and focusing resources on our late-stage clinical programs and revenue-generating marketed products," CEO Christy Shaffer said in a written statement.
Durham-based Inspire (Nasdaq: ISPH) says it lost $9.7 million, or 17 cents per diluted share, in the quarter ended Dec. 31, 2008. A year earlier, the company lost $18.1 million, or 51 cents per diluted share.
Revenue increased by 35 percent, to $18.9 million, from $13.9 million.
Inspire said strong sales of AzaSite, a pink eye medicine it launched in 2007, helped it grow sales. The company also saw increased revenue from Restasis, a dry eye treatment.
Analysts polled by Thomson Reuters had, on average, expected Inspire to post a fourth quarter loss of 24 cents per share on revenue of $17.8 million.
"During 2008, we delivered on both our financial goals and key clinical milestones," Shaffer said.
But Inspire remains unprofitable, and the company is burning through cash. Inspire had $73 million worth of cash and equivalents on its balance sheet as of Dec. 31. A year earlier, that figure was $140 million.
And tough financial markets are making it hard for companies to raise cash, leading some to turn, like Inspire, to job cuts.
For 2009, the company says, it expects revenue in the range of $80 million to $90 million. Analysts project sales of $83.9 million.
Beyond 2009, the company's revenue streams are less certain. Inspire said in February that the holder of the patent on an Inspire drug, Elestat, has decided not to challenge generic drugmakers who want to sell copies of the treatment. Such generics could, potentially, hit the street in 2010 and wipe out nearly all of Inspire's revenue from Elestat.
Possible streams of new revenue include two drugs that are in late-stage trials: the cystic fibrosis treatment denufosol and the dry eye drug Prolacria.
Inspire said Tuesday that it expects its cash to last it through 2009 and into 2010.