Enzon Pharmaceuticals won't spin off biotech business

By Lisa Kerner

Charlotte, N.C., Dec. 1 - The board of directors of Enzon Pharmaceuticals, Inc. discontinued the company's previously announced plan to spin off its biotechnology business into a separate public company.

"While we continue to believe that the spin off of the biotechnology business would be a strategic and value-enhancing plan, the current external market conditions have influenced our decision at this time," Enzon chairman and chief executive officer Jeffrey H. Buchalter said in a company news release.

Enzon, a Bridgewater, N.J.-based biopharmaceutical company, said it will continue to focus on improving its operating efficiency and advancing its novel research and development portfolio.

Shareholder DellaCamera Capital Master Fund, Ltd., with a 7.6% stake in Enzon, opposed management's plan to spin off Enzon's biotech business.

DellaCamera had suggested the company partner "any one of its numerous clinical or pre-clinical compounds so that the company can benefit from third-party validation of its technology," it was previously reported.

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