DHRUAM, N.C. — Quarterly losses for Inspire Pharmaceuticals (Nasdaq: ISPH) increased to $5.4 million, up $600,000 from a year ago, despite a surge in revenues in the second quarter, the company said Tuesday.

Expenses increased to $20 million from $15.3 million in 2005 due to research and development as well as administrative costs, the company said.

Revenues climbed to $13.4 million from $9.6 million based in large part on co-promotion and sale of the drugs Restasis and Elestat.

Inspire: www.inspirepharm.com