San Diego-based Phenomix Corporation, a biopharmaceuticals firm focused on small molecule drugs, has dropped its IPO bid, according to a filing by the company with the SEC this morning. Phenomix said that it has applied to withdraw its IPO, blaming market conditions. Phenomix had filed a S-1 in January of this year looking to raise up to $86.25M on the Nasdaq. The firm's IPO was being underwritten by Morgan Stanley, Credit Suisse, Oppenheimer & Co, and Pacific Growth Equities. The firm is venture backed by JP Morgan, Nomura Phase4 Ventures, Delphi Funds, Alta Partners, Sofinnova, Novartis Bioventures, Baker Brothers Funds, Bay City Capital, CMEA, and others.