San Diego-based biopharma Phenomix has cancelled its $86.25 million initial public offering. The Novartis-backed firm filed for an IPO back in January, but cited "market conditions" as its reason for withdrawing the IPO.
The company, which was founded in 2001, is currently developing treatments for type 2 diabetes and hepatitis C. It's lead candidate is an oral DPP-4 inhibitor for type 2 diabetes, dutogliptin (PHX1149), which is currently in phase III clinical trials. In addition to NovartisBioVenture fund, leading its long list of investors are JP Morgan, Nomura Phase4 Ventures, Delphi Ventures, Alta Partners, Sofinnova, Baker Brothers, CMEA Ventures and GBS Venture Partners.
There was some good news from the company today, however. Phenomix and Forest Laboratories have inked a $340 million deal to develop and commercialize Phenomix's type 2 diabetes candidate, dutogliptin (PHX1149). Under the terms of the agreement, Forest will make an upfront $75 million payment to Phenomix. The two companies will equally share the profits and expenses of the development, commercialization and marketing in the U.S. Phenomix could receive up to $340 million in upfront and milestone payments for development in U.S. markets. Phenomix was a 2007 Fierce 15 company.
- see the release on the deal
- check out the IPO story in Mass High Tech