San Diego-based Phenomix, a developer of diabetes drugs, has shut down, according to reports. The firm--which was developing drugs to help treat diabetes--apparently has laid off most of its staff, and is looking for a buyer for the assets. The move came after its major pharmaceutical partner, Forest Labs, decided to no longer pursue clinical trials. Phenomix had raised somewhere in the range of $250M in funding from such firms as Alta Partners, Baker Brothers Investments, Bay City Capital, CM Capital Investments, CMEA Ventures, Delphi Ventures, Forest Laboratories, GBS Venture Partners, JPMorgan Partners, Nomura Phase4 Ventures, Novartis BioVenture Fund, Panorama Capital, Rothschild Bioscience Managers, Sofinnova Ventures, and Versant Ventures. The news of the shutdown was first reported by Xconomy.