Enzon to sell specialty pharmaceutical business to Italian company

By Lisa Kerner

Charlotte, N.C., Nov. 9 - Enzon Pharmaceuticals, Inc. said it agreed to sell its specialty pharmaceutical business to the sigma-tau Group for $300 million plus an additional amount of up to $27 million based on the achievement of milestones.

The specialty pharmaceutical business includes four marketed products - Oncaspar, Adagen, DepoCyt and Abelcet - as well as a manufacturing facility in Indianapolis.

A U.S. subsidiary of Sigma-Tau Pharmaceuticals, Inc. will purchase the manufacturing facility, according to an Enzon news release.

Enzon said it will receive royalties of 5% to 10% on incremental net sales above a 2009 baseline amount from the four marketed specialty pharmaceutical products through 2014.

The transaction is expected to close in the first quarter of 2010, subject to approval by the holders of a majority of Enzon's outstanding shares of common stock.

Once the sale is completed, Enzon's businesses will consist of its royalties, Peg SN38 and LNA and PEG technology platforms, the release said.

"Enzon's board of directors is evaluating options to return most of the value of this sale to shareholders" Enzon chairman Alex Denner said in the release.

"We will refocus the company on our royalty business, pipeline, and technology platforms."

Goldman, Sachs & Co., Greenhill & Co. and Skadden, Arps, Slate, Meagher & Flom LLP advised Enzon on the transaction.

Sigma-tau is an Rome-based pharmaceutical company that develops and commercializes medicines for rare diseases.

Enzon is a Bridgewater, N.J., biopharmaceutical company.

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