For want of a horse. . .

Hunter-Fleming Ltd.'s story illustrates the fate of a company founded by people who were more interested in owning a company than getting in enough money to accelerate its development into a sustainable business. Despite having three compounds in the clinic, Hunter-Fleming was forced to sell itself to Newron Pharmaceuticals S.p.A. this month for a mere E25 million ($37 million) in stock.

In the spring of 2006, Hunter-Fleming had other ideas. The CNS and inflammation company's plan was to raise £10 million in a private round followed a year later with an IPO of £20-£25 million. The first tranche was achieved, partly through the creation of a special purpose vehicle funded by Advent International plc and Omega Fund to develop a preclinical asthma asset. But the company struggled to raise the additional funds publicly or privately at a valuation that was acceptable to existing shareholders...