Enzon Reports Fourth-Quarter and Full-Year 2011 Results
2011 Highlights
- In December, at the San Antonio Breast Cancer Symposium, Enzon presented data from a Phase II study in which PEG-SN38 demonstrated notable activity in patients with previously treated metastatic breast cancer. Study investigators concluded that PEG-SN38 warrants further clinical study in metastatic breast cancer. Enzon is currently seeking a strategic partner to further develop and commercialize PEG-SN38 in breast cancer as well as in other malignancies; absent such a partnership, the Company does not intend to fund further development of PEG-SN38.
- In November, at the 2011
AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics , Enzon presented clinical and preclinical data from three messenger RNA (mRNA) product candidates based on the Company's locked nucleic acid (LNA) technology program. Data presented were from a Phase I study of EZN-3042 in combination with docetaxel targeting Survivin mRNA, a preclinical study of EZN-3920 targeting HER3 mRNA, and a preclinical study of EZN-3892 targeting β-catenin mRNA. - At the 2011
American Association of Cancer Research (AACR) Annual Meeting in April, Enzon presented data from two preclinical and two clinical studies of four investigational mRNA antagonists, demonstrating the compounds' potential to inhibit key tumor targets. - In September, Enzon announced a reduction in force, which will reduce the number of employees to fewer than 50 by
June 2012 . Enzon expects the reduction in force to result in approximately$6.0 million in reduced annualized operating expenses once the plan is fully implemented by the second quarter of 2012.
Summary of Financial Results
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 to
Cash and Investments
Total cash reserves, which include cash, cash equivalents, short-term investments, and marketable securities, were
About Enzon
Forward-Looking Statements
This press release contains, or may contain, forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release, other than statements that are purely historical, are forward-looking statements, 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. Forward-looking statements in this press release include, but are not limited to: (i) statements regarding Enzon's intent with respect to funding further development of PEG-SN38, (ii) statements regarding the reduction in force, including its expected results, (iii) statements regarding the possibility of increased sales of PEGINTRON in the future resulting from the
Such forward-looking statements are based upon management's present expectations, objectives, anticipation, plans, hopes, beliefs, intentions or strategies regarding the future and are subject to known and unknown risks and uncertainties that could cause actual results, events or developments to be materially different from those indicated in such forward-looking statements including but, not limited, to (i)uncertainty regarding the impact of the reduction in force on Enzon's results, (ii) uncertainty regarding the impact, if any, of the
Enzon Pharmaceuticals, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited; In thousands, except per share amounts)
Three months ended
December 31,
2011 2010
Revenues:
Royalties $ 9,782 $ 10,549
Sale of in-process research and development - -
Contract research and development 52 1,845
Miscellaneous revenue 177 124
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Total Revenues 10,011 12,518
Operating Expenses:
Research and development - pipeline 9,135 14,032
Research and development - specialty and
contracted services 48 1,120
General and administrative 3,466 4,905
General and administrative - contracted
services 1 49
Restructuring charges 1,376 2,974
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Total Operating Expenses 14,026 23,080
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Operating Loss (4,015) (10,562)
Other Income (Expense)
Investment income, net 484 573
Interest expense (1,490) (680)
Other-than-temporary impairment loss - -
Other, net - 1,039
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Total Other Income (Expense) (1,006) 932
Loss from continuing operations before taxes (5,021) (9,630)
Income tax benefit - (1)
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Loss from continuing operations (5,021) (9,629)
Income and gain from discontinued operations,
net of taxes - 1,041
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Net Loss $ (5,021) $ (8,588)
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Loss per common share - continuing operations -
basic and diluted $ (0.10) $ (0.16)
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Earnings per common share - discontinued
operations - basic and diluted $ - $ 0.02
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Loss per common share - net loss - basic and
diluted $ (0.10) $ (0.14)
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Weighted average shares - basic and diluted 48,289 59,747
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Enzon Pharmaceuticals, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited; In thousands, except per share amounts)
Year ended December 31,
2011 2010
Revenues:
Royalties $ 40,923 $ 44,940
Sale of in-process research and development 5,000 40,900
Contract research and development 1,431 9,273
Miscellaneous revenue 718 2,752
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Total Revenues 48,072 97,865
Operating Expenses:
Research and development - pipeline 40,180 49,883
Research and development - specialty and
contracted services 926 7,135
General and administrative 17,281 25,439
General and administrative - contracted
services 115 1,957
Restructuring charges 6,025 14,026
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Total Operating Expenses 64,527 98,440
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Operating Loss (16,455) (575)
Other Income (Expense)
Investment income, net 1,735 3,465
Interest expense (5,929) (6,315)
Other-than-temporary impairment loss - (896)
Other, net 91 1,184
------------ ------------
Total Other Expense (4,103) (2,562)
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Loss from continuing operations before taxes (20,558) (3,137)
Income tax expense (benefit) 205 (337)
------------ ------------
Loss from continuing operations (20,763) (2,800)
Income and gain from discontinued operations,
net of taxes - 180,043
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Net (Loss) Income $ (20,763) $ 177,243
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Loss per common share - continuing operations -
basic and diluted $ (0.40) $ (0.05)
============ ============
Earnings per common share - discontinued
operations - basic and diluted $ - $ 3.08
============ ============
(Loss) earnings per common share - net (loss)
income - basic and diluted $ (0.40) $ 3.03
============ ============
Weighted average shares - basic and diluted 51,910 58,466
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Enzon Pharmaceuticals, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited; In thousands)
December 31, December 31,
2011 2010
Assets
Current assets:
Cash and cash equivalents $ 104,324 $ 397,530
Marketable securities - available-for-sale 58,188 31,170
Other current assets 2,749 5,916
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Total current assets 165,261 434,616
Property and equipment, net 16,802 21,574
Marketable securities 160,779 31,394
Other assets 367 1,273
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Total Assets $ 343,209 $ 488,857
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 1,572 $ 4,192
Accrued expenses and other current
liabilities 13,692 14,195
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Total current liabilities 15,264 18,387
Notes payable 129,499 134,499
Other liabilities 1,265 4,114
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Total Liabilities $ 146,028 $ 157,000
Total Stockholders' Equity $ 197,181 $ 331,857
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Total Liabilities and Stockholders'
Equity $ 343,209 $ 488,857
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Investor Contact:Andrea Rabney Argot Partners 212.600.1902 Email Contact Media Contact:Meghan Feeks Argot Partners 212.600.1902 Email Contact
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