Phenomix closes after failing to find buyer

Phenomix has shut down its operations, laid off all of its 45 employees, and only has a few people left attempting to find someone to continue developing its lead drug candidate for diabetes.

San Diego-based Phenomix has closed down. The one-time highflying IPO candidate has shut down its operations, laid off all of its 45 employees, and only has a few people left attempting to find someone to continue developing its lead drug candidate for diabetes. Pam Lord, vice president, Canale Consultants, said that Forest terminated the dutogliptin collaboration last April for business reasons. “They didn't elaborate any further.” However, Forest subsequently entered into US$1.1 billion collaboration with TransTech Pharma to develop their glucokinase activation compounds for diabetes.

As Lord says: “the first Phase III trial for dutogliptin 400mg met the primary and secondary endpoints, so the product shows promise. Phenomix sought another partner for US development, one that can fund a PIII program that could potentially cost US$300-500 million, due to the extensive regulatory hurdles. The commercial landscape for DPP-4 inhibitors is also particularly challenging. A p