Shares in Pharmaxis declined by almost 50 per cent today after investors took a gloomy view on trial results of its Bronchitol drug.

Pharmaxis late yesterday made public the top line data from the second large?scale global Phase III trial of Bronchitol in patients with cystic fibrosis.

"The results support the early and sustained improvement in lung function in cystic fibrosis patients seen in the first phase III study and Pharmaxis will now move forward to meet the US Food & Drug Administration later this year to discuss a New Drug Application for Bronchitol," according to the company.
However, analyst Saul Hadassin of Credit Suisse believes the results, although showing positive treatment effect, were not "statistically significant".

"While patients in the treatment arm demonstrated statistically significant improvement in lung function the primary endpoint failed to reach statistical significance," he said.

Credit Suisse has decreased Pharmaxis rating on the stock to neutral from outperform, and reduced its target price to $3.50 from $3.95.

The pharmaceutical company fought back by early afternoon to last trade at about 32 per cent lower at $2.11 after reaching $1.655. The stock price closed yesterday at $3.12.

Pharmaxis is involved in the research, development and commercialisation of new therapies for undertreated respiratory diseases. One of its key products, Bronchitol, is a drug developed to reduce the amount of mucus build-up in the lungs of patients suffering from chronic respiratory conditions, including cystic fibrosis, bronchiectasis and chronic bronchitis.

"Clinical studies have shown Bronchitol to be safe, effective, and well tolerated in treating patients with both cystic fibrosis and bronchiectasis," Pharmaxis claims.