Last Updated Jan 8, 2009 3:13 PM EST
Inspire's SEC filing says that if the Prolacria joint-venture goes belly up, Inspire will regain the right to co-promote Restasis as long as it provides Allergan with 20 percent of Allergan's sales force. But that catch has a catch of its own:
If Inspire does not provide such number [of sales reps] the royalty payments due on net sales of RestasisÂ® will be reduced by thirty percent (30%).Thus the deal provides a short-term advantage for Inspire -- it continues to receive the Restasis revenue without the expense of providing a sales force for it. But should Prolacria be abandoned by Allergan, it will be expensive for Inspire to jump back in with a sales force 20 percent the size of Allergan's. Thus Allergan may be in a position to force Inspire to accept the lower revenue rate. The Restasis franchise is a healthy one: Inspire's Restasis revenue in Q3 2008 was $7.8 million, compared to $6.5 million in 2007. Allergan's revenue for Restasis was $107 million, up 21.4 percent. Allergan forecast that Restasis sales would cap the year at $440 million.
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