It is entirely unremarkable to me.
The glue was 1) developed by a colleague, and 2) thought to be a failure.
The money was 1) taken by Alex, and 2) thought to not be his money (You need a main verb to go with that giant noun phrase - like "was actually his all along.")
One of the earrings you paid so much for that you left on the counter fell down the drain.
If you are writing for learners, you should probably write it another way: He remembered that one of his colleagues had developed a type of glue. People thought the glue was a failure. It was not a good glue, but it was useful in another way. It became part 3M's best-selling product.