Biogen, Celltech Say Crohn's Disease Drug Failed

Biogen(BGEN Quote) and partner Celltech(CLL Quote) said Tuesday that an experimental drug for Crohn's disease currently under development failed to meet the endpoint in two late-stage clinical trials.

Biogen shares were off 85 cents, or 2%, to $35.10 in early trading. Celltech shares slid l.44, or 10%, to $12.40.

The two companies inked a partnership to codevelop the drug, CDP 571, last April. Crohn's disease is an illness in which a person's immune system attacks the bowel and intestines.

Celltech said results from two Phase III studies conducted in patients with moderate-to-severe Crohn's disease showed CDP 571 to be an active drug and capable of producing some positive response, but not enough to reach statistical significance. The company said the drug's safety profile was excellent.

Biogen said it would analyze the data further before deciding whether to continue its partnership with Celltech.

Last April, Biogen CEO Jim Mullen said that CDP 571, if approved, would have generated about $300 million in annual revenue.