Memory Pharmaceuticals
Montvale, NJ
Founded: 1997

What we said: Founded by Nobel Laureate Eric Kandel, Memory Pharmaceuticals was launched with the aim of exploring causes and potential treatments for neurological diseases associated with aging. In 2002, the company scored a lucrative deal with Roche to develop and commercialize treatments for Alzheimer's and other neurological disorders. In 2003, we expected the company to start looking at in-licensing opportunities.

What happened: Memory Pharmaceuticals went public in 2005, raising $30.7 million. Later that year, the developer landed a collaboration deal with Amgen to develop potential treatments for neurological and psychiatric disorders. But Memory made it onto our worst pharma stocks of 2007 list after its stock plunged on the news that its lead drug candidate, MEM 1003, failed a mid-stage study for bipolar disorder.

The same year, the developer did manage to achieve good results in a mid-stage proof-of-concept trial of MEM 3454, a compound designed to treat Alzheimer's disease. Promising results from the MEM 3454 program prompted Roche to expand their research pact in 2008. But that wasn't enough to reel in investors. Months later, Memory announced it would cut more than half of its workforce. In November 2008, Roche acquired Memory for $50 million--or $0.61 per share--a hefty premium over the Memory's $0.15 per share trading price.

View the original Fierce 15 of 2003 report.

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