Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: The new trading year came in with a loud thud for Inspire Pharmaceuticals (Nasdaq: ISPH) when its stock fell 58% this morning.

So what: In a late-stage trial, Inspire's cystic fibrosis drug candidate failed both primary and secondary goals. Patients in another study are also being recommended to discontinue use of the drug.

Now what: Management is looking at making "possible strategic directional changes," not exactly a good sign for investors heading into 2011. The news today was a shock to almost everyone, and after similar disappointing results from Prolacria last year, Inspire isn't giving investors much to cheer about. Management will give a corporate update in mid-February and I'll stay away from the stock at least until that update.

Interested in more info on Inspire Pharmaceuticals? Add it to your watchlist.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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.