Infinity Pharmaceuticals

Based: Cambridge, MA
Founded: 2001
www.infi.com

Bottom line: Reaching for the brass ring

What we said: Infinity has roused intense biopharma interest in its chemistry, developing three-dimensional compounds that are believed to have enhanced capabilities. Novartis, AmGen and Johnson & Johnson have all bought in, injecting $50 million in new capital into Infinity in recent months in order to gain entrée to Infinity's impressive compound library. The biotech has raised an impressive $135 million in four years. Infinity just started a clinical trial on an experimental oncology drug for multiple myeloma. Under the direction of a research group that includes Julian Adams, who played a major role in the development of Velcade at Millennium, they want to see if the new drug works where Velcade and Thalomid don't. By inhibiting heat-shock proteins that repair damaged proteins, researchers believe they can allow cancer cells to be overwhelmed and die out. Preclinical data for IPI-504 demonstrated a significant reduction in tumor burden for several types of animal cancer

What happened: Last April, while a host of cash-strapped biotechs were left scrambling for cash and development partners, Infinity Pharmaceuticals was mapping out its own bold plan to hang on to the marketing rights of its expansive portfolio of cancer drugs. AstraZeneca had just returned the rights to two programs, but CEO Steven Holtzman told the Wall Street Journal that the true path to building shareholder value lay in marketing your own drugs in the U.S. Holtzman was still making bold when he shrugged off the company's decision to halt a late-stage trial of IPI-504 after safety overseers spotted a higher mortality rate in the treatment arm. After the company's stock plunged 45 percent, Holtzman said the company was pushing ahead with its development schedule as planned. Recently, Infinity's development hero, Genentech, offered some compelling early data indicating that the hedgehog pathway offered an effective route to target tumors. Infinity said it has the money on hand to continue development work for several years.