Phenomix, Former Highflying Diabetes Drugmaker, Shuts Down After Forest Labs Walks

10/26/10Follow @xconomy

(Page 2 of 2)

that the price tag for developing the new Phenomix treatment has roughly doubled, making it too expensive for venture capitalists to continue to support it, Lord says.

“The U.S. market is crowded in the DPP4 space,” Lord says. “Only a few pharmaceutical companies are candidates for licensing or acquiring dutogliptin, and they themselves have DPP4 programs and can really only develop one at a time.”

The diabetes treatment may still be sold regionally in countries with less competition from other DPP4 inhibitors and less difficult regulatory hurdles, like China, Korea, and Taiwan, Lord says. Phenomix is also looking to sell off a program to develop an experimental hepatitis C drug, she says.

Phenomix filed paperwork with the Securities & Exchange Commission to go public back in January 2008, but never pulled the trigger as markets soured later in the year. The company’s largest shareholders at the time of the proposed IPO were JP Morgan (18 percent), Nomura Phase4 Ventures (15.8 percent), Delphi Funds (11.1 percent), Alta Partners (9.8 percent), Sofinnova Ventures (9.8 percent), and Swiss drug giant Novartis (9.4 percent).

Single Page Currently on Page: 1 2 previous page

By posting a comment, you agree to our terms and conditions.

  • http://www.xconomy.com/author/ltimmerman/ Luke Timmerman

    Pam Lord called this morning to clarify her last quote in this story. While the U.S. market for DPP4 inhibitors for diabetes is crowded, and the major pharma companies have diabetes R&D programs, not all of them are specifically working on DPP4 inhibitors, Lord says.

  • Chemist

    Let’s all remember this compound is a boronic acid. Claims that it’s in the same “class” as the other compounds is a stretch. How many boronic acids on the market as drugs?

  • http://SignPathPharma.com Lawrence Helson MD

    Sign Path Pharma is a drug development company pursuing parenteral curcumin for several indications:cancerand neuropathic disorders. Curcumin also has anti-diabetic activity.
    It might be worth exploring DPP4 inhibitors and curcumin individually and ultimately combined.

    Lawrence Helson MD