Inspire Shares Fall As Wedbush Analyst Downgrades

NEW YORK (AP) — Shares of Inspire Pharmaceuticals Inc. fell Wednesday as a Wedbush Morgan analyst downgraded the stock, citing risks with the company's glaucoma treatment program and a lack of upcoming catalysts.

The stock fell 55 cents, or 9.4 percent, to $5.33 in morning trading. Shares have traded between $1.68 and $6.54 over the past 52 weeks.

Wedbush Morgan analyst Liana Moussatos downgraded shares to "Neutral" from "Outperform" and reaffirmed a $15 fair value for the stock, citing the developing glaucoma treatments INS115644 and INS117548. She said early-stage data suggest that only INS115644 may go forward based on how well it was tolerated.

Meanwhile, INS117548 had only a mild pressure-lowering effect and ocular discomfort, suggesting the company may not move the drug forward.

Early-stage studies are poor indicators of whether a drug works to treat its intended target because of the size of the study. They are mainly used to determine dosing for larger studies and to assess the potential side effects and safety of a drug.

Key Phase I, or early-stage, study data for INS117548 won't be released until medical conferences in 2010, Moussatos said.