May 9--DURHAM -- Inspire Pharmaceuticals narrowed its loss in the first quarter, but the improvement didn't meet analysts' forecasts.

The Durham company said Thursday that it lost $25.9 million, or 46 cents per share, down from the $26.1 million it lost in the same period a year ago. Analysts had expected a loss of about 32 cents per share, according to Thomson Financial.

Revenue from Inspire's three eye-care medicines rose 35 percent to $9.7 million. Analysts were looking for $13.1 million.

Operating expenses climbed 5 percent to $35.6 million, mainly because Inspire boosted its sales staff to promote AzaSite, a pink-eye treatment that received regulatory approval about a year ago.

Inspire lowered sales projections for AzaSite to a range of $62 million to $76 million in January and reaffirmed the numbers Thursday. The company said it has begun educational programs for physicians and discounts for patients to boost sales.

"We expect momentum for Aza-Site to build," said Christy Shaffer, Inspire's chief executive.

The AzaSite sales disappointment is one of three setbacks Inspire has suffered this year. In January, the company scrapped a partnership with a Spanish drug maker after an experimental allergy pill hit regulatory roadblocks. Last month, Inspire pulled the plug on a nasal spray for seasonal allergies because the treatment failed a late-stage clinical study.

Inspire's best chances to turn a profit are Denufosol, a cystic fibrosis drug that has been in the works for more than a decade, and Prolacria, a dry-eye treatment that has been in regulatory limbo for about two years. Both are in late-stage testing and at least two years from generating sales if they are approved.

Inspire, which is also working on a glaucoma treatment, had about $109 million in cash as of March 31, enough to operate at least 18 months.

Inspire shares closed at $3.32 Thursday, up 32 cents.

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