Perlegen Sciences, a Mountain View, Calf. company that develops drugs based on genetic response, withdrew its plans to raise up to $115 million in an initial public offering.

The company cited market conditions, and also problems with a $1.3 million government contract.

A spin-out from public company Affymetrix, Perlegen has raised about $256 million from a list of investors including BioOne Capital, Biofrontier Partners, Brookside Capital, BSI industries, Cape Securities, CMEA Ventures, CSK Venture Capital, Eli Lilly, Glynn Capital Management, Lombard Odier Darier Hentsch, Maverick Capital, Mizuho Securities, MPM BioEquities, Pfizer, Sano Ventures, SB Life Sciences, Unilever Technology Ventures, Vulcan Capita and Zesiger Capital.