Enzon Reports 3rd Quarter 2011 Results
Third Quarter 2011 and Recent Highlights
- In October,
Ana I. Stancic , C.P.A., M.B.A., was promoted to Chief Operating Officer, Principal Executive Officer and Executive Vice President. Ms. Stancic will also continue serving in her role as Chief Financial Officer.Ralph Del Campo , M.B.A., former Chief Operating Officer and Principal Executive Officer, stepped down from his position to pursue other interests. - In October, Enzon also announced that the Board of Directors has formed a special committee to oversee the Company's scientific and clinical development. The committee is comprised of Directors
Richard A. Young , Ph.D., who will act as chairman, andThomas F. Deuel , M.D.
Summary of Financial Results
Revenues
Royalty Revenue
Revenues received from the Company's royalty products for the three months ended
Research and Development
The Company's pipeline research and development expenses were
General and Administrative
General and administrative expenses decreased approximately 12 percent to
Restructuring
In
Cash and Investments
Total cash reserves, which include cash, cash equivalents, and investments in marketable securities, were
About Enzon
Forward Looking Statements
There are forward-looking statements contained herein, which can be identified by the use of forward-looking terminology such as the words "believes," "expects," "may," "will," "should," "potential," "anticipates," "plans," or "intends" and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from the future results, events or developments indicated in such forward-looking statements. Such factors include but are not limited to the timing, success and cost of clinical studies for Enzon's product candidates, the ability to obtain regulatory approval of Enzon's product candidates, Enzon's ability to obtain the funding necessary to develop its product candidates, market acceptance of and demand for Enzon's product candidates, and the impact
of competitive products, pricing and technology. A more detailed discussion of these and other factors that could affect results is contained in Enzon's filings with the
ENZON PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three months ended
September 30,
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2011 2010
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Revenues:
Royalties $ 10,207 $ 10,902
Contract research and development 54 2,217
Miscellaneous revenue 179 111
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Total revenues 10,440 13,230
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Operating expenses:
Research and development - pipeline 10,436 14,206
Research and development - specialty and
contracted services 47 1,197
General and administrative 4,102 4,682
General and administrative - contracted services 2 86
Restructuring charge 3,616 453
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Total operating expenses 18,203 20,624
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Operating loss (7,763) (7,394)
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Other income (expense):
Investment income, net 407 1,110
Interest expense (1,480) (1,479)
Other-than-temporary impairment loss - (896)
Other, net (69) 174
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Total other expense (1,142) (1,091)
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Loss from continuing operations, before income tax
expense (benefit) (8,905) (8,485)
Income tax expense (benefit) 200 (131)
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Net loss $ (9,105) $ (8,354)
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Loss per common share
Basic and diluted $ (0.19) $ (0.14)
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Weighted average shares - basic and diluted 48,729 60,840
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ENZON PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
September 30, December 31,
2011 2010
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ASSETS
Current assets:
Cash and cash equivalents $ 304,995 $ 397,530
Marketable securities - available-for-sale 25,250 31,170
Other current assets 2,920 5,916
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Total current assets 333,165 434,616
Property and equipment, net 18,065 21,574
Marketable securities 2,743 31,394
Other assets 565 1,273
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Total assets $ 354,538 $ 488,857
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 757 $ 4,192
Accrued expenses and other 14,009 14,195
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Total current liabilities 14,766 18,387
Notes payable 134,499 134,499
Other liabilities 3,533 4,114
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Total liabilities 152,798 157,000
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Stockholders' equity 201,740 331,857
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Total liabilities and stockholders' equity $ 354,538 $ 488,857
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Common shares outstanding 48,273 58,818
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Investor Contact:Andrea Rabney Argot Partners 212.600.1902 Email Contact
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