Company: Phenomix

Based: San Diego

Scoop: Phenomix, a 2007 Fierce 15 company, attracted several rounds of financing to support its work on dutoglyptin (PHX1149), an oral treatment for type 2 diabetes. It also had a second program for hepatitis C in the clinic. After raising several rounds of venture capital, the San Diego-based company attempted an $86 million IPO, but withdrew the offering due to market conditions.

Instead, Phenomix landed a $340 million deal with Forest Labs to develop and commercialize dutogliptin, including a $75 million upfront payment. The developer got another injection of $28 million from Italy's Chiesi Farmaceutici in exchange for marketing rights to the drug in Europe and several other countries.

Dutogliptin went on to hit its primary endpoint in a Phase III trial. But Forest unexpectedly dumped its deal with Phenomix in April 2010, and the developer was unable to find a partner who wanted to tackle the challenging market for diabetes drugs. Six months later Phenomix revealed that it was laying off all but a few employees as it searched for a buyer for dutogliptin.

Yet there are second chances for executives in biotech. Former Phenomix CEO Laura Shawver landed at Cleave Biosciences, a San Francisco-based start-up that recently gained $42 million for cancer drug work.