Insmed (NASDAQ:INSM) reported news regarding its treatment for resistant nontuberculous mycobacterial (NTM) lung infections, causing a 7% spike in the stock. Folks were excited about it, with Piper Jaffray reiterating an "Overweight" rating on the stock. Let's dive in to why.

After conducting a 12 week trial comparing Arikayce to placebo (plus standard of care in both cases), Insmed noted that 11 of 44 patients given Arikayce demonstrated negative mycobacterial cultures, compared to 3 of 45 patients on placebo. After achieving statistical significance for this secondary endpoint, Insmed allowed those on placebo to switch to Arikayce, leading to a total of 21 patients with negative cultures. The 21 patients was the news for today.

However, the big takeaway from the trial probably still is the primary endpoint of change in mycobacterial density -- and Arikayce whiffed, missing statistical significance by a fair margin (p-value of 0.148).

In the video below Motley Fool health care analysts David Williamson and Michael Douglass discuss the trial and the endpoints -- and what they think of the data.

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David Williamson has no position in any stocks mentioned. Michael Douglass has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.