Insmed's lead drug failed to show efficacy in a mid-stage clinical trial of a genetic condition called myotonic muscular dystrophy and investors swiftly hammered the stock, sending down shares more than 50 percent on the news.
The Richmond, VA-based developer announced that Iplex did not demonstrate a statistically significant improvement in the functional measure of endurance by the six-minute walk test, muscle function, muscle strength, or quality of life in any of the tests utilized in this study. "Based on the limited number of subjects enrolled with significant impairments in cognitive function, gastrointestinal function or pain, Insmed was unable to reach any conclusions regarding the effects of Iplex on these endpoints."
The data comes just days after Insmed Chief Executive Geoffrey Allan announced his resignation from the company due to an unexplained health condition. The departure was announced June 16 and the resignation was effective immediately. Allan had been president, CEO and chairman of the company since its launch 10 years ago.
"We are disappointed that this trial did not meet the majority of its functional endpoints," said Insmed's new chairman, Dr. Melvin Sharoky. "However, the statistically significant improvement in insulin sensitivity seen in this study suggests that an additional phase II study in MMD patients with severe insulin resistance may be warranted." Sharoky went on to say that the company has $120 million in cash, leaving Insmed with plenty of options to pursue.