Speedel
Based: Basel, Switzerland
Founded: 1998

Bottom line: Bought out

What we said: Speedel has an impressive lineup of Phase II and Phase III compounds in development. The brainchild of CEO Dr. Alice Huxley, Speedel got started by in-licensing a compound that was being neglected in the merger that created Novartis. That compound--SPP-100--is now back in Novartis' hands under a collaboration deal and is in pivotal trials for hypertension. Novartis has contributed both milestone revenue and an equity investment. Speedel also in-licensed two other compounds in the same kind of approach; picking up the research where other pharma companies left off. Another compound, SPP-301, is being put through Phase III by Speedel alone, this one for diabetic nephropathy. And the company's research arm--Speedel Experimenta--has been making strides in developing preclinical renin inhibitors, which the company views as an emerging class of anti-hypertensives. The combination of in-licensing drugs with potential and "unlocking" their value--providing some near-term revenue potential--while developing agents in a preclinical setting has won Speedel some loyal investors. That made it possible to back away from an IPO rather than take a deep discount on its stock price.

What happened: Speedel had its share of setbacks after we recognized the company four years ago. But Novartis still saw plenty of value when it arrived at Speedel's doorsteps last year and bought the company for $880 million. The two companies had been joined at Speedel's hip on the Tekturna program, and was likely on the hook for $700 million in royalty payments. That made the 94 percent premium it paid for Speedel shares look like a bargain. And Novartis got to take over Speedel's pipeline, which had a slate of new therapies for heart and metabolic diseases. Speedel had a mid-stage therapy in development for kidney disease in diabetics.