Inspire Pharmaceuticals stock plunged more than $2 a share before rallying a bit Tuesday after the company disclosed poor results in tests for a new drug.
Inspire (Nasdaq: ISPH) rallied from a drop of $2.27, or 14 percent, to end the day down $1.37, or 8.5 percent, at $14.78.
The study of INS37217, a treatment for perennial allergic rhinitis, or PAR (symptoms: runny nose, nasal congestion, nasal itching and post-nasal drip), showed it was “well tolerated but did not meet the primary endpoint of significantly reducing the total nasal symptom score,” Inspire said in a statement.
Some 630 patients were tested recently over a period of 28 days.
Inspire said spending on research and development of the drug would be reduced, according to wire reports.
INS37217 had performed better than in earlier Phase 1 and Phase 2 studies.
“Although the primary endpoint was not met, patients receiving INS37217 Intranasal had a decreased incidence of respiratory infection as compared to patients on placebo,” the company said, adding, “This finding will require further study.”
Christy Shaffer, Inspire’s chief executive officer, said Inspire “will continue to conduct secondary analyses to determine future plans for the intranasal program.”
Inspire remains on track with its Diquafosol drug, a treatment for dry eye, which will be co-marketed by Allegan. Sales of that drug could exceed $400 million, according to Deutsche Bank Securities analyst David Steinberg.