Boston, MA, 02/27/2014 (usastockreport) – Insmed Incorporated (NASDAQ:INSM) a clinical biopharmaceutical company saw its shares sink in Wednesday trading session, after reporting mixed results for its lung disease treatment. According to a press release from the company, Arikayce failed to meet primary endpoint in mid stage study as well as critical secondary endpoints.
Short Comings of the Drug
Insmed Incorporated (NASDAQ:INSM)’s drug, Arikayce, failed to reduce bacteria density, which is a measure of change in infection, in patients suffering from nontuberculous mycobacterial relating to lung infections. The drug did not lead to significant reduction in bacteria as compared to placebo, which is a fake drug.
A total of 90 patients received standard care treatment as part of the study. Insmed noted that there was a positive trend in favor of Arikayce, but was not enough to meet the set standards or levels, with a high p value of 0.148. Another major setback lied on the fact that Arikayce showed adverse effects compared to placebo, during medical trials.
Positives from the Study
It is a rare occasion to see a mixture of both positive and negative news all in one clinical study, but that was exactly the case with Arikayce. Failure in an endpoint study most of the time result in Insmed Incorporated (NASDAQ:INSM)’s share price sinking. There was a sigh of relief from the company’s study, considering cultures from 11 of the 44 patients on test did not show any signs of bacteria therefore meeting mid stage trials, a secondary goal for culture conversion.
Secondary data achieved from the study was a more realistic measure of the drug’s efficacy, expected to be more meaningful to the U.S. Food and Drug Administration as well as doctors. This news essentially eliminates the debate on the meaningfulness of the data. It is estimated that if Arikayce is approved, it could result in sales of about $500 million as of 2024.