Celgene won't initiate phase 3 trial for Crohn's disease drug

Celgene discontinues trial of Crohn's disease drug

Celgene's shares fell about 6.3 percent in after-hours trading on Thursday after the pharmaceutical company said that it won't initiate a phase 3 trial for a Crohn's disease drug.

The company said it made the decision after a recommendation from the data monitoring committee, which assessed overall benefit and risk. There were no meaningful safety imbalances identified, Celgene said.

"While we are disappointed with the results of REVOLVE, we remain committed to advancing our portfolio of novel medicines for patients suffering from this disease and other inflammatory bowel disorders," Celgene President and Chief Operating Officer Scott Smith said in a statement.

Celgene said it would review the full dataset from the phase two trial of an ulcerative colitis drug before determining the next steps.

WATCH: Celgene reopens, shares plunge

Celgene reopens, shares plunge