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"I think there may have been some expectations for a superiority result versus tobramycin (TOBI) and that's probably something a few investors were focused on," Wedbush Securities analyst Gregory Wade said.
Arikace, a treatment inhaled once daily, showed a lower mean change in forced expiratory volume in one second than the twice-daily TOBI.
The forced expiratory volume test measures lung function by calculating the volume of air exhaled by a person during a forced exhalation.
The late-stage study, which included 302 patients and was conducted at 70 sites in Europe and Canada, reported adverse events consistent with those seen in similar studies.
Insmed Chief Executive Will Lewis said the company would file for regulatory approval for Arikace in Canada and Europe during the first half of 2014.
"It looks like it has met the efficacy standard for approval in Europe so we would expect that it would be successful there. What remains to be seen is whether the U.S. cystic fibrosis market is accessible with this data set," Wade said.
The therapy is the only candidate in Insmed's pipeline.