Inspire to undergo strategic corporate restructuring

With this move Inspire intends to completely leverage its existing commercial capabilities, pipeline assets and related corporate development and licensing opportunities to focus on eye care business.

The corporate restructuring encompasses a workforce reduction of about 65 positions.

It will primarily affect functions in R&D, manufacturing, technical, general and administrative operations.

However, the commercial infrastructure will change minimally and there will be no reductions to Inspire’s specialty eye care sales force.

The move is estimated to result in a more than $40m reduction in 2011 non-cost of sales operating expenses, excluding restructuring charges, as compared to 2010.

Inspire expects to record a restructuring charge of $10-$13m in the first quarter of 2011, including severance costs, termination of ongoing denufosol contracts and activities, and the write-off of impaired assets and idle facility charges.

Inspire president and CEO Adrian Adams said the disappointing results with the company’s cystic fibrosis (CF) program has strengthened the belief that the prudent strategy would be to leverage the eye care business and discontinue the pulmonary therapeutic focus.