Thursday, October 23, 2008

Report: Novartis BioVenture’s investment, Phenomix, withdraws IPO

By Mass High Tech Staff

Novartis BioVenture Fund-backed drug developer, Phenomix Corp., has announced its cancellation of an $86.25 million initial public offering, pointing to the down economy as its rationale, according to published reports.

The San Diego biopharmaceutical firm, founded in 2001, has raised VC funding totaling about $125 million, website PE Hub reports. Phenomix was intended to be traded on The Nasdaq Stock Market, with co-lead underwriters Morgan Stanley and Credit Suisse. NovartisBioVenture Fund is based in Wellesley.

Other financial backers of Phenomix include JP Morgan Partners, Nomura Phase4 Ventures, Delphi Ventures, Alta Partners, Sofinnova Ventures, Baker Brothers, Bay City Capital, CMEA Ventures and GBS Venture Partners.

Phenomix develops an oral drug, PHX1149, which is a DPP-4 inhibitor intended to treat Type 2 diabetes. The company’s PHX1766, a protease inhibitor, treats the hepatitis C virus.