Wedbush reiterated an Outperform rating on Carbylan Therapeutics (NASDAQ: CBYL), and raised the price target to $14.00 (from $21.00). Carbylan announced that Hydros-TA missed on the second primary endpoint of demonstrating a statistically significant improvement in pain scores at week 26 vs. TA. Wedbush anticipates that once Carbylan completes its analysis of COR1.1, management will likely meet with the FDA to determine adjustments to the Phase 3 COR1.2 and COR1.3 trials to support filing.

Analyst Liana Moussatos commented, "Hydros-TA met one of two primary endpoints in its pivotal Phase 3 COR1.1 trial in patients with pain associated with osteoarthritis of the knee. Carbylan announced that Hydros-TA demonstrated a statistically significant improvement from baseline in WOMAC A pain scores at week 2 vs Hydros, meeting the first primary endpoint. Conversely, Hydros-TA missed on the second primary endpoint of demonstrating a statistically significant improvement in pain scores at week 26 vs. TA (triamcinolone acetate). Hydros-TA was generally well tolerated with no treatment related SAEs or AEs reported. While Hydros-TA performed better on an absolute basis in Cor1.1 better than it did in the Phase 2 study for both co-primary endpoints at weeks 2 and 26, patients in the control TA arm did not report an expected increase in pain at week 26. We speculate enrolled patients had milder OA pain than grade 2/3 intended for a viscosupplement product candidate."

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Shares of Carbylan Therapeutics closed at $2.47 yesterday.