Discovery Labs' shares surge on new BPD data

Shares of Discovery Laboratories surged on new data from a mid-stage trial of its Surfaxin lung therapy. Researchers announced that fewer prematurely born infants died from the lung disease Bronchopulmonary Dysplasia--or BPD--after being treated with Surfaxin. Researchers noted that 57.8 percent of infants taking Surfaxin died compared to 65.9 percent of infants given a placebo. Surfaxin is a synthetic version of a natural substance the liver needs to absorb oxygen. Researchers also noted that the patients taking Surfaxin were able to reduce the amount of mechanical ventilation needed by an average of four days.

The FDA has indicated that the therapy is approvable for infants born with little or none of this substance. But even as investors cheered on a 25.8 percent increase in share price yesterday, analysts remained distinctly nervous about the Warrington, PA-based company's prospects. One noted that the response difference between Surfaxin and a placebo is not statistically significant.

- read the AP report on the trial results