Assumptions didn't pan out

In 1998, Ibex Technologies Inc. discontinued a Phase III trial of its Neutralase heparinase in cardiopulmonary bypass surgery patients due to excess bleeding in the Neutralase group. Despite those problems, BioMarin Pharmaceutical Inc. bought Ibex in 2001 for $8.5 million in stock and $2 million in cash, because BMRN believed the compound's problems were due to a flaw in the clinical trial design that it knew how to fix.

But the company last week terminated the Neutralase program, and now will have to monetize the Ibex acquisition based on the remaining three preclinical compounds. ...