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Inspire Pharmaceuticals

(ISPH)

, its chief executive and another company official were notified by the

Securities and Exchange Commission

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that they might be facing regulatory actions.

The SEC issued Wells notices last week in connection with an investigation of a clinical trial of Inspire's dry-eye product candidate Prolacria.

The Wells notices indicate that the SEC staff plans to recommend that the full commission bring a civil action against the company and the two officers regarding possible violations of securities laws.

Inspire, a biopharmaceutical company, and the officers will have the opportunity to respond in writing before the staff makes any formal recommendation. Shares of Inspire were losing 62 cents, or 11%, to $5 Monday.