Liposome Company's ARDS Drug Fails At Ph III

The Liposome Company has disclosed that its product for the treatment ofacute respiratory distress syndrome, Ventus (liposomal prostaglandin E1 for injection, previously code-named TLC C-53), has failed in Phase III clinical trials.

This is a severe blow for the company, whose shares fell $15.25 to $9.56 on the day of the announcement, losing around $570 million in market capitalization, according to Reuters, and marking another upset for the biotechnology industry.

Analysis of the 350-patient study demonstrated that there was no significant difference between patients receiving Ventus or placebo, either in reducing the time on mechanical ventilation or in reducing 28-day mortality. No safety concerns for the drug were noted.