June 9, 2010 / 12:43 PM / 9 years ago

UPDATE 1-Discovery Labs lung drug disappoints in mid-stage trial

* Drug did not significantly cut artificial breathing time

* Says drug was safe and well tolerated

* Drug is to treat pediatric respiratory failure

June 9 (Reuters) - Discovery Laboratories Inc DSCO.O said its lung drug did not show statistically significant reduction in the time of artificial breathing in children suffering from acute respiratory failure in a mid-stage study.

The study enrolled 165 children with acute respiratory failure, who received either the drug Surfaxin or a dummy drug.

The objective of the study was to evaluate the safety and tolerability of the drug and to assess whether Surfaxin treatment could decrease the duration of mechanical ventilation, the company said.

The company said Surfaxin treatment reduced time on mechanical ventilation by about 10 percent, which was not statistically significant, compared to the group receiving the dummy drug.

However, the drug was generally safe and well tolerated and the company expects further assessment of safety and tolerability of the drug to be completed in the third quarter.

Shares of the company closed at $0.40 Tuesday on Nasdaq. (Reporting by Krishnakali Sengupta in Bangalore;Editing by Prem Udayabhanu)

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