Company: Peptimmune

Based: Somerville, MA

Scoop: After the upstart was spun out of Genzyme in 2002, Peptimmune landed multiple rounds of funding from investors like New Enterprise Associates, MPM Capital and Hunt Ventures for development of its multiple sclerosis treatment called PI-2301. The drug, a peptide copolymer, is similar to Teva's Copaxone, but is administered weekly instead of daily.

Yet he company was unable to raise $35 million for mid-stage trials of the drug, and most of its staff had to be eliminated. At some point along the way Novartis, which has struck a deal with the developer related to PI-2301, decoupled itself from the developer's MS program. As Peptimmune wound down its business and attempted to cover its debts earlier this year, Merck Serono swooped in and bought full rights to PI-2301 for just $1.5 million.