The 2003 merger between Hyseq and VARIAGENICS created a company, Nuvelo, that was pinning its hopes on a single therapeutic candidate in Phase I development. This candidate, alfimeprase, a thrombolytic drug, is now in Phase III trials, is predicted to become a blockbuster and has just been licensed to Bayer HealthCare, thus justifying the faith shown in it originally. The financial terms of this deal do not seem excessive at first, but the conditions that Nuvelo have received demonstrate the negotiating power of a company with a potential blockbuster to offer. This feature also examines how investors have suddenly realised the long-term potential offered by Nuvelo and its maturing pipeline.