Enzon reduces royalty payments to Sanofi-Aventis for oncology treatment Oncaspar

By E. Janene Geiss

Philadelphia, Oct. 31 - Enzon Pharmaceuticals, Inc. announced Monday that it agreed with Sanofi-Aventis officials to reduce royalties on the oncology product Oncaspar.

The amendment, which becomes effective January 2006, reduces the royalty rate to a single-digit percentage on annual sales that exceed $25 million, according to a company news release.

Enzon will make an upfront cash payment of $35 million, and is obligated to make royalty payments through June 30, 2014, at which time all royalties will cease, officials said.

Other terms were not disclosed.

Previously, Enzon was obligated to pay a 25% royalty on all sales of Oncaspar in the United States and Canada, officials said.

Oncaspar is a PEG-enhanced version of the naturally occurring enzyme L-asparaginase, an enzyme that depletes the amino acid asparagine, which certain leukemic cells are dependent on for survival.

Bridgewater, N.J.-based Enzon is a biopharmaceutical company that develops therapeutics to treat patients with cancer and other diseases.

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