Enzon Pharmaceuticals shareholder seeks answers to specific questions on Thursday

By Lisa Kerner

Charlotte, N.C., Feb. 17 - Enzon Pharmaceuticals, Inc. shareholder DellaCamera Capital Management, LLC raised numerous questions it wants the company to answer during Enzon's conference call to the investment community at 10 a.m. ET on Thursday.

DellaCamera, citing "numerous failed efforts" overseen by chairman and chief executive officer Jeffrey H. Buchalter and chief financial officer Craig Tooman, wants the executives to respond to the following:

• Did Enzon receive any bids for its specialty pharmaceutical business in the $275 million to $325 million range?;

• What led you to pursue the $100 million Dutch tender for notes in the manner that you chose?;

• What were the total transaction costs incurred related to the aborted Evivrus spinoff?;

• How do you explain the fact that you have spent $166 million building a pipeline that equity analysts are valuing at only a fraction of this amount?;

• What steps are you taking to highlight the value, and minimize the development risks and costs, of the company's LNA platform?;

• Why have you chosen to hold Enzon's last three annual stockholder meetings in Indianapolis?;

• What steps are you taking to highlight and extract value from the company's royalty business?; and

• What justification can you give for not implementing a share repurchase program?

On Feb. 10, DellaCamera asked Enzon to expand its board of directors in order to add former ImClone Systems Inc. board members Dr. Alexander J. Denner and Professor Richard C. Mulligan.

According to DellaCamera, while Enzon announced Denner and Mulligan as candidates for election at the 2009 annual meeting of stockholders, the company has not yet contacted the pair.

DellaCamera also recommended that Enzon's board seek guidance from new financial advisers and urged the company to hold its 2009 annual meeting in New York because a large number of the biopharmaceutical company's shareholders are based in New York and Connecticut. Enzon is based in Bridgewater, N.J.

In January, DellaCamera proposed that Enzon's board form a special committee of independent directors to evaluate strategic and financial alternatives to enhance stockholder value.

DellaCamera beneficially owns 3,446,558 shares, or 7.6%, of Enzon's common stock.

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