Altus shares nosedive despite Phase III success

Hitting a primary endpoint in a late-stage trial is not always a recipe for success, it seems. Shares of Altus Pharmaceuticals nosedived this morning after the company issued a release saying that its late-stage study of the cystic fibrosis drug Trizytek hit its primary endpoint in fat absorption. Trizytek is an enzyme replacement therapy. But the data evidently failed to completely satisfy all the analysts who follow the company. Some were looking for a higher degree of efficacy and may have been troubled by regional variations in the data. And that response helped shave off about 50 percent of the company's stock value.

Piper Jaffray analyst Andrew Fein reportedly said he was disappointed that the data failed to demonstrate a greater degree of efficacy. But he also noted that the data was positive and sufficient to support an application for marketing approval. Researchers are also studying why patients in three of six non-U.S. countries failed to demonstrate a significant response compared to a placebo group. The strong response among U.S. volunteers, though, allowed the drug to hit its primary endpoint.

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