Why Celgene Corporation Dropped Today

Celgene (NASDAQ: CELG) is down 10.2% at 12:09 p.m. Friday after announcing yesterday after the market closed that it was stopping a clinical trial testing GED-0301 (mongersen) in Crohn's disease because the drug doesn't appear to be helping patients.

The decision comes after the data monitoring committee reviewed interim results during a futility analysis of the "overall benefit/risk" of GED-0301. Celgene noted that there were "no meaningful safety imbalances identified," so the issue must have been on the efficacy side.

In addition to stopping the phase 3 RESOLVE trial and the SUSTAIN extension trial that patients can transition into from RESOLVE, Celgene said it doesn't plan to run DEFINE, a second phase 3 trial that hasn't started yet.

Source: Fool.com