Inspire Pharmaceuticals has terminated its drug development deal with Spanish pharmaceutical firm FAES Farma for an orally delivered allergy drug.
Inspire (Nasdaq: ISPH) had signed a contract worth as much as $89 million in 2006 for the U.S. and Canadian rights to the drug bilastine.
However last June Inspire began backing away from the drug, which was still in clinical trial, after a meeting with the U.S. Food and Drug Administration. Inspire’s decision at that point saved it from having to make a $7 million development payment. FAES had agreed to pay for continued testing of the drug.
On Monday, Inspire said it was exercising the option given to both firms to terminate the deal “in its entirety.”
“We have made a strategic business decision to terminate the bilastine agreement and focus our resources and capital investments on our other late stage development programs and commercial activities,” Inspire Chief Executive Officer Christy Shaffer said in a statement.
