Enzon to sell specialty pharma business

New Jersey-based biopharmaceutical products maker for life-threatening ailments, Enzon Pharmaceuticals Inc,.today disclosed having entered into a definitive agreement to sell its specialty pharmaceutical business to Italian pharma group Sigma-Tau for $300 million plus an additional amount of up to $27 million based on success milestones.

Enzon will also receive royalties of 5 to 10 per cent on incremental net sales above a 2009 baseline amount from Enzon's four marketed specialty pharmaceutical products through 2014.

Its drug development programs utilise several PEGylation technology platform and the 'locked nucleic acid' (LNA) technology, which was used to develop two of its products, Oncaspar and Adagen, and has created a royalty revenue stream from licensing partnerships for other products developed using the technology. Enzon also engages in contract manufacturing for several pharmaceutical companies to broaden its revenue base.

Apat from Oncaspar, Adagen, Enzon's specialty pharmaceutical business includes two other marketed products - DepoCyt, and Abelcet, as well as its  manufacturing facility in Indianapolis, Indiana, which will be purchased by a US subsidiary of Sigma-Tau Pharmaceuticals, Inc.

Sigma-Tau Pharmaceuticals will distribute the products in the US market.

After the sale of these assets, Enzon's businesses will consist of its royalties, Peg SN38 and our LNA and PEG technology platforms. "Enzon's board of directors is evaluating options to return most of the value of this sale to shareholders" stated Alex Denner, Chairman. "We will refocus the company on our royalty business, pipeline, and technology platforms."