Enzon Reports Second Quarter 2012 Results
Summary of Financial Results
Royalty Revenue
Royalty revenue 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 6% to
Cash and Investments
Total cash reserves, which consist of cash, cash equivalents and marketable securities, were
Recent Highlights
- At the 2012
American Society of Clinical Oncology Annual Meeting in June, Enzon presented data from the final analysis of 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. - At the 2012 Advances in
Neuroblastoma Research Conference in June, Enzon presented data from a Phase I study of PEG-SN38 in children with recurrent or refractory neuroblastoma and other solid tumors. The study achieved its primary objective which was to determine the recommended Phase II dose of PEG-SN38. In addition, PEG-SN38 was safe and well tolerated at the doses evaluated and showed preliminary evidence of activity. Study investigators concluded that PEG-SN38 warrants further clinical study in pediatric neuroblastoma. - In July, Enzon entered into a research and development collaboration with
Molecular Templates, Inc. , a biopharmaceutical company, which is focused on the discovery and development of a new class of targeted biologic therapeutics called Engineered Toxin Bodies (ETB). The agreement provides for the research, development, and potential licensing of therapeutics focused on oncology, and which utilize Enzon's releasable customized PEGylation linker technology.
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) the statement that PEG-SN38 warrants further clinical study and (ii) the statement that Enzon does not intend to proceed with the clinical development of Survivin.
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) the timing, success and cost of clinical studies for Enzon's product candidates, (ii) the ability to obtain regulatory approval of Enzon's product candidates, (iii) Enzon's ability to obtain a strategic partner to develop and commercialize PEG-SN 38, (iv) Enzon's ability to obtain the funding necessary to develop its product candidates, (v) market acceptance and demand for Enzon's product candidates, and (vi) 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 Comprehensive Loss
(Unaudited; In thousands, except per share amounts)
Three months ended
June 30,
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2012 2011
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Revenue:
Royalties $ 9,771 $ 9,172
Sale of in-process research and development - -
Contract research and development 33 231
Miscellaneous income 427 196
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Total Revenues 10,231 9,599
Operating Expenses:
Research and development - pipeline 5,673 10,061
Research and development - specialty and
contracted services 28 184
General and administrative 4,358 4,627
General and administrative - contracted
services - 54
Restructuring charges (70) 674
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Total Operating Expenses 9,989 15,600
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Operating Income (Loss) 242 (6,001)
Other Income (Expense):
Investment income, net 523 386
Interest expense (1,364) (1,479)
Other, net (97) 31
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Total Other Expense (938) (1,062)
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Loss before income tax expense (696) (7,063)
Income tax expense 33 5
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Net Loss $ (729) $ (7,068)
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Loss per common share - basic and diluted $ (0.02) $ (0.13)
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Weighted-average shares - basic and diluted 48,176 53,054
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Other Comprehensive Loss:
Available-for-sale marketable securities:
Unrealized holding losses arising during
the period $ (57) $ (153)
Reclassification adjustment for realized
gains on sales included in net loss (16) (58)
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Total Other Comprehensive Loss (73) (211)
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Comprehensive Loss $ (802) $ (7,279)
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Enzon Pharmaceuticals, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited; In thousands)
June 30, December 31,
2012 2011
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Assets
Current assets:
Cash and cash equivalents $ 59,441 $ 104,324
Marketable securities 69,705 58,188
Other current assets 3,057 2,749
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Total current assets 132,203 165,261
Property and equipment, net 14,240 16,802
Marketable securities 170,450 160,779
Other assets 156 367
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Total Assets $ 317,049 $ 343,209
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 616 $ 1,572
Accrued expenses and other current
liabilities 8,425 13,692
Notes payable 115,849 -
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Total current liabilities 124,890 15,264
Notes payable - 129,499
Other liabilities 640 1,265
Total Liabilities $ 125,530 $ 146,028
Total Stockholders' Equity $ 191,519 $ 197,181
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Total Liabilities and Stockholders'
Equity $ 317,049 $ 343,209
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Investor Contact:Andrea Rabney /Susan Kim Argot Partners 212.600.1902 Email Contact Email Contact Media Contact:Eliza Schleifstein Argot Partners 212.600.1902 Email Contact
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