Boston, MA 04/01/2014 (wallstreetpr) – The wordings of press releases are extremely important as the management of Insmed Incorporated (NASDAQ:INSM) have realized. The press release issued by the company recently sent investors scurrying to the exists. A careful analysis showed that the results were encouraging and finally, the stocks made an upward movement.
The lead drug candidate:
Insmed Incorporated (NASDAQ:INSM) is focuses on developing treatment for patients suffering from lung diseases. One of its drugs; ARIKACE is being developed for the treatment of lung infections, cystic fibrosis (CF) patients with Pseudomonas aeuruginosa lung infections and patients with nontuberculous mycobacteria lung infections. Lung infections are reaching alarming proportions as the human population gets exposed to increasing levels of air pollution. The situation is so worse that several cities in China have to close down non-essential services particularly during winter. The company uses targeted inhalation therapies to deliver anti-infective to the site of the infection. This line of treatment offers several advantages over the conventional lines of treatment. In fact, the U.S. F.D.A. has classified the drug as a New Chemical Entity due to the use of liposomal technology.
The Results:
Insmed Incorporated (NASDAQ:INSM) was conducting phase 2 clinical trails for the treatment of patients with treatment resistant NTM (nontuberculous mycobacterial) lung infections. The trial was being conducted over 90 patients and was a randomized double blind placebo controlled trial. Development of new drugs and lines of treatment have to pass through various stages of clinical research before the F.D.A is satisfied and issues its approval. Many of the trials are designed after extensive consultations with the FDA. The results were delivered recently and though there were several positives, the wordings of press release created a false sense of alarm in the minds of the investors. They presumed that the results were very discouraging. Though the trials did not meet all the expectations of the company, several other results were encouraging and the company was also planning to go ahead with other studies.
A careful study of the results finally convinced the investors and they halted their panic selling. The stocks of Insmed Incorporated (NASDAQ:INSM) were up by more than 11% at the end of trading on March 31, 2014.
