They only come out towards the end of an IPO window. After investors have snapped up all the preclinical or Phase I-stage drug development companies and the venture capitalists are scratching around their portfolios to off-load risk and negative cash flows onto the public markets from investments that weren't formed five minutes ago, then we see the platform companies.

It's on to plan B for Zalicus, which saw its stock price drop 43.2% to $0.79 per share on 10 September after the company announced that it is dropping development of its lead drug candidate, Synavive, due to a lack of clinically meaningful benefit for rheumatoid arthritis (RA) patients in a Phase IIb study.

CombinatoRx has reported a fourth quarter profit of $25.2 million on lower R&D spending and gains from its acquisition of Neuromed Pharmaceuticals. The US firm's shares closed up by 8% to $1.36 yesterday after swinging from a fourth-quarter loss of $15.2 million the year before.

CombinatoRx and privately held Neuromed Pharmaceuticals announced yesterday that they have closed their $28.8 million all-stock merger.