Phenomix Folds After Diabetes Drug Fails To Attract Partner To Fill Forest's Shoes
This article was originally published in The Pink Sheet Daily
DPP-4 drug dutogliptin was a casualty of the highly competitive, regulated and expensive space for diabetes drug development.
You may also be interested in...
In our second annual Life Science VC Survey, biopharma investors continue to look to oncology and rare disease, while their cold shoulder toward metabolic disease seems to be warming. Even though most agree the traditional biotech funding model is broken, our participants are far from convinced that new models such as asset-based financing are the answer.
Tougher regulatory hurdles introduced three years ago extended the timelines for successful diabetes drug development, discouragiing investment and partnering activity. An ever-increasing incidence of diabetes, metabolic disorders, and obesity continues to drive innovation and the development of new medicines – but with less emphasis on novel mechanisms.
When the management team at Phase4 Ventures in February 2011 spun the venture capital business out of parent Nomura, the move highlighted two important features of the VC landscape. The first is continued investor interest in Europe, which will replace the US as Phase4's primary geographic focus, and the second is the growing, and increasingly creative, role for large secondary players in the still-vulnerable VC sector.