Enzon Pharmaceuticals to spin off biotechnology business

By Lisa Kerner

Charlotte, N.C., May 7 - The board of directors of Enzon Pharmaceuticals, Inc. authorized a spinoff of the company's novel biotechnology business.

The spinoff is expected to close in the fourth quarter of 2008, according to a company news release.

Enzon said it will retain the current marketed products of Abelcet, Adagen, DepoCyt and Oncaspar, the rights to current PEG royalty revenues and the manufacturing facility in Indianapolis.

The spun off biotechnology company will leverage its customized PEGylation technology for licensing, collaboration and future royalty generation and maintain the Locked Nucleic Acid technology to develop oncology products.

Enzon said it will capitalize the new company with $150 million of cash.

"By separating these unique businesses into two focused companies, the opportunities for both the specialty pharmaceutical business and the biotechnology business could be substantially enhanced and greater value could be created than under the current structure," chairman and chief executive officer Jeffrey H. Buchalter stated in the release.

Buchalter will be chairman, president and CEO of the new biotechnology company, and Craig Tooman, current Enzon chief financial officer, will become president and CEO of Enzon.

Goldman, Sachs & Co. and Skadden, Arps, Slate, Meagher & Flom LLP are advising the Bridgewater, N.J., biopharmaceutical company with respect to the spinoff.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.