Infinity Reverse Merges Into Discovery Partners

Through a reverse merger with Discovery Partners International Inc. , oncology discovery and development play Infinity Pharmaceuticals Inc. will access the public market and Discovery's roughly $70-75 million cash. [See Deal] That the deal won't secure Infinity the kind of market capitalization that the firm's top-notch pedigree and previous private valuations pointed toward merely reflects the market's healthy skepticism for early-stage assets. It also suggests that even for companies as promising as Infinity, reverse mergers are increasingly the smoothest—and in some cases the most lucrative—path to the Nasdaq.