Akesis: The 2009 Biotech Graveyard

Company: Akesis
Based: San Diego

What went wrong: Akesis filed for Chapter 7 bankruptcy after data from its only development program, AKP-020, showed that it caused kidney changes in patients. Carl LeBel, CEO of Akesis, noted that safety concerns meant AKP-020 was "no longer viable as a drug candidate in a chronic disease setting." The drug was in Phase II trials for diabetes mellitus. Akesis also cited its cash position and current economic conditions as reasons for the bankruptcy.