Alliance stock plummets as LiquiVent disappoints in ARDS trial

Alliance Pharmaceutical Corp saw its share price fall 26% to $3.18 onMay 22 after the company announced preliminary results from a Phase II/III study which showed that use of its LiquiVent (perflubron) for adult patients with acute respiratory distress syndrome being supported by a mechanical ventilator was not effective. Efficacy data from the study revealed that use of LiquiVent in the firm's Partial Liquid Ventilation technique did not meet either the primary study endpoint for improvement in ventilator-free days, or the secondary endpoint of improvement in 28-day mortality.

"While we are disappointed with the results of the study and we do not contemplate further PLV studies with adult ARDS patients, Alliance intends to pursue the use of LiquiVent for other indications in the treatment of lung disease," said the firm's chief executive, Duane Roth. Such applications may include use of LiquiVent for the lung delivery of therapeutics such as antibiotics or genes, or its use as a lung-recruiting, anti-inflammatory or lavage agent.

He added that the company will now focus on its next milestones, namely securing US Food and Drug Administration approval of the ultrasound contrast agent Imavist (AFO-150) and the resumption of clinical development of the blood substitute Oxygent (perflubron emulsion), both of which are expected later this year.