As recently as 12-18 months ago, biotechs could call on a wide range of investors: hedge funds, institutional investors, and VCs. But as the IPO market vanished, things changed quickly, and only the VCs remain. Using their market power, these VCs are resetting prices through flat and down-rounds, taking advantage of the financing drought to fund later-stage companies that will theoretically be ready for an IPO should the window open.

With the limited success of traditional approaches to CNS, scientists are betting that genomics may hold the key to a new generation of drugs that stop disease progression and possibly reverse its impact. At least half a dozen companies focusing mostly on neurogenomics have started up and raised more than $100 million in the past three years. While they use standard genomics tools and follow typical post-genomics business models, they face special challenges due to the complexity of the brain.

AGY Therapeutics is initially focused on studying stroke. It is examining genes the brain switches on in response to damage, on the theory that these gene products might be potential targets for inhibitory therapeutics.

Cardinal's acquisition of Bergen was unexpected, if only because the company has spent the last several years buying higher margin businesses that integrate vertically with its core distribution business. But the ability to get critical mass was too much to pass up; now the only question is, will the merger pass FTC muster?