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.