Inspire Pharmaceuticals has received a $1.25 million milestone payment from an Asian partner for development of a drug to treat ailments such as dry eye.

Santen Pharmaceuticals made the payment to Inspire based on completion of a Phase 2 trial for the Inspire drug diquafosol.

The two companies signed a development and licensing agreement in 1998. The deal covers diquafosol development in Japan and nine other Asian countries.