8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of report (Date of earliest event reported)               September 7, 2005

INSPIRE PHARMACEUTICALS, INC.
(Exact Name of Registrant as Specified in Charter)

Delaware                                    000-31135                            04-3209022
(State or Other Jurisdiction(Commission (IRS Employer
of Incorporation)File Number)Identification No.)

4222 Emperor Boulevard, Suite 200, Durham, North Carolina            27703-8466
(Address of Principal Executive Offices)(Zip Code)

Registrant's telephone number, including area code          (919) 941-9777

_____________________________________________
(Former Name or Former Address, if Changed Since Last Report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

On September 7, 2005, Inspire Pharmaceuticals, Inc. issued a press release, attached to and made part of this report, announcing that the U.S. Securities and Exchange Commission is conducting a formal, nonpublic investigation.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

No.Description

99.1Press Release dated September 7, 2005

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Inspire Pharmaceuticals, Inc.

By: /s/ Christy L. Shaffer
Christy L. Shaffer,
President and Chief Executive Officer

Dated: September 8, 2005

EXHIBIT INDEX

No.Description

99.1Press Release dated September 7, 2005

EX-99.1

For Immediate Release

Contact:

Inspire Pharmaceuticals, Inc.

Jenny Kobin

Senior Director, Investor Relations

(919) 941-9777, Extension 219

INSPIRE ANNOUNCES SEC INVESTIGATION

DURHAM, NC -- September 7, 2005 -- Inspire Pharmaceuticals, Inc. (NASDAQ: ISPH) announced today that the U.S. Securities and Exchange Commission (SEC) is conducting a formal, nonpublic investigation, which the Company believes relates to trading in the Company's securities surrounding its February 9, 2005 announcement of the results of its Phase 3 clinical trial of diquafosol tetrasodium for treatment of dry eye (Study 109), as well as the Company's disclosures regarding this Phase 3 clinical trial. The Company and one of its directors have each received a subpoena in connection with this investigation.

About Inspire

Inspire is a biopharmaceutical company dedicated to discovering, developing and commercializing prescription pharmaceutical products in disease areas with significant commercial potential and unmet medical needs. Inspire has significant technical and scientific expertise in the therapy areas of ophthalmology and respiratory and is a leader in the field of P2 receptors which are important drug targets in various therapeutic areas, including ophthalmology, respiratory disease and cardiovascular disease. Inspire's U.S. specialty sales force promotes ElestatÒ (epinastine HCl ophthalmic solution) 0.05% and RestasisÒ (cyclosporine ophthalmic emulsion) 0.05%, ophthalmology products developed by Inspire's partner, Allergan, Inc. Elestat and Restasis are trademarks owned by Allergan.

Forward-Looking Statements

The forward-looking statements in this news release relating to management's expectations and beliefs are based on preliminary information and management assumptions. Such forward-looking statements are subject to a wide range of risks and uncertainties that could cause results to differ in material respects, including those relating to product development, revenue, expense and earnings expectations, intellectual property rights, adverse litigation developments, competitive products, results and timing of clinical trials, success of marketing efforts, the need for additional research and testing, delays in manufacturing, funding and the timing and content of decisions made by regulatory authorities, including the U.S. Food and Drug Administration. Inspire can make no assurances as to the scope or focus of the SEC's investigation. Further information regarding factors that could affect Inspire's results is included in Inspire's filings with the SEC. Inspire undertakes no obligation t o publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof.

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