UPDATE 1-Insmed drug fails in genetic disorder study, shrs tank

* Mid-stage genetic disorder study fails to show efficacy

* Study did not mean majority functional goals

* Shares dropped 50 pct

June 25 (Reuters) - Insmed Inc (INSM.O) said a mid-stage trial that was testing its drug Iplex for the treatment of a genetic disorder failed to show efficacy and did not meet the majority of the functional goals of the study.

Shares of the company were down more than 50 percent to $1.16 in pre-market trade from their Wednesday's close of $2.33 on Nasdaq.

Iplex, which is already approved for treating a growth hormone deficiency, was being tested by the company as a potential treatment for myotonic muscular dystrophy (MMD), a genetic disorder that results in various symptoms across multiple body systems.

Insmed said Iplex did not improve the functional measure of endurance in the six-minute walk test, muscle function, muscle strength or quality of life, and the company was unable to reach any conclusions regarding the effects of the drug on those goals.

The company plans to apply for a grant from the Muscular Dystrophy Association for an additional mid-stage trial focused on a subset of MMD patients with severe insulin resistance who may be more likely to benefit from Iplex treatment.

For the alerts, please click [ID:nWNAB2121] (Reporting by Esha Dey in Bangalore; Editing by Jarshad Kakkrakandy)