Local Tech Wire

DURHAM, N.C. – Inspire Pharmaceuticials (Nasdaq: ISPH) has renegotiated its licensing, development and marketing agreement with Allergan in a deal that means smaller royalties for the Durham firm.

Inspire regains rights to the proposed eye drug Prolacria, which failed a Phase III clinical trial earlier this year.

Allergan, meanwhile, will pay Inspire smaller royalties on sales of the eye drug Restasis beginning in 2011. Inspire will no longer have to pay co-promotion costs of Restasis. Inspire also can receive royalties from other products from Allergan.

Royalties drop 3 percentage points in 2011, another 0.25 percentage point in 2013 and another 0.50 percentage point in 2014.

Inspire does not plan further development of Prolacria “at this time,” Inspire Chief Executive Officer Adrian Adams said in a statement.

The new agreement runs through 2020.

For the full announcement,

Get the latest news alerts: at Twitter.