DURHAM–Inspire Pharmaceuticals Inc. (Nasdaq:ISPH) reported a net loss of $6.6 million or 21 cents a common share for the second quarter, compared with a net loss of $5.9 million or 24 cents a common share in the same period last year.

The company said revenue for the quarter increased to $4.1 million compared with $1.4 million in the same quarter 2002. The increase is from a milestone payment from its collaborative partner Allergan (NYSE:AGN) relating to its submitting a new drug application for its new dry eye treatment.

The company said its operating expenses also increased, rising to $10.8 million, up 44 percent from the $7.5 million a year prior. The increase in operating expenses was primarily due to a $2.7 million increase in research and development expenses, the company said.