Enzon Reports Third 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 decreased 62% to
General and Administrative
General and administrative expenses decreased approximately 22% to
Cash and Investments
Total cash reserves, which consist of cash, cash equivalents and marketable securities, were
Recent Highlights
- In July, at the 39th Annual Meeting & Exposition of the
Controlled Release Society , Enzon presented data from pre-clinical studies on the controlled release of human interferon-beta-1b (IFN-B-1b) and anti-TNF-a antibody fragment (FAB) through releasable PEGylation technology. The data demonstrated how releasable PEGylation opens new opportunities to capture the inherent benefit of PEG technology, particularly with compounds that are not suitable for permanent PEGylation. - In September, at the 2012
World Congress and Expo on Biowaivers and Biosimilars , Enzon presented an overview of PEGylation, its Customized Linker Technology®, and its potential to create or enhance biobetter and biosimilar therapeutics by extending the benefit of this proprietary technology to a wider range of therapeutic molecules.
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.
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 Income (Loss) (Unaudited; In thousands, except per share amounts) Three months ended September 30, -------------------- 2012 2011 --------- --------- Revenues: Royalties $ 10,919 $ 10,207 Sale of in-process research and development - - Contract research and development - 54 Miscellaneous income 202 179 --------- --------- Total Revenues 11,121 10,440 Operating Expenses: Research and development - pipeline 3,954 10,436 Research and development - specialty and contracted services 10 47 General and administrative 3,209 4,102 General and administrative - contracted services - 2 Restructuring charges (113) 3,616 --------- --------- Total Operating Expenses 7,060 18,203 --------- --------- Operating Income (Loss) 4,061 (7,763) Other Income (Expense): Investment income, net 1,386 407 Interest expense (1,274) (1,480) Other, net 2 (69) --------- --------- Total Other Income (Expense) 114 (1,142) --------- --------- Income (loss) before income tax expense 4,175 (8,905) Income tax expense - 200 --------- --------- Net Income (Loss) $ 4,175 $ (9,105) ========= ========= Basic earnings (loss) per common share $ 0.09 $ (0.19) ========= ========= Diluted earnings (loss) per common share $ 0.08 $ (0.19) ========= ========= Weighted-average shares outstanding - basic 46,387 48,729 ========= ========= Weighted-average shares outstanding - diluted 58,563 48,729 ========= ========= Other Comprehensive Loss: Available-for-sale marketable securities: Unrealized holding gains (losses) arising during period $ 590 $ (323) Reclassification adjustment for realized gains on sales included in net income (loss) (979) (139) --------- --------- Total Other Comprehensive Loss (389) (462) --------- --------- Comprehensive Income (Loss) $ 3,786 $ (9,567) ========= =========Enzon Pharmaceuticals, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited; In thousands) September 30, December 31, 2012 2011 ------------- ------------- Assets Current assets: Cash and cash equivalents $ 140,946 $ 104,324 Marketable securities 137,492 58,188 Other current assets 2,236 2,749 ------------- ------------- Total current assets 280,674 165,261 Property and equipment, net 13,323 16,802 Marketable securities 10,299 160,779 Other assets 172 367 ------------- ------------- Total Assets $ 304,468 $ 343,209 ============= ============= Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,058 $ 1,572 Accrued expenses and other current liabilities 7,394 13,692 Notes payable 115,849 - ------------- ------------- Total current liabilities 124,301 15,264 Notes payable - 129,499 Other liabilities 452 1,265 ------------- ------------- Total Liabilities $ 124,753 $ 146,028 Total Stockholders' Equity $ 179,715 $ 197,181 ------------- ------------- Total Liabilities and Stockholders' Equity $ 304,468 $ 343,209 ============= =============
Investor Contact:Andrea Rabney Argot Partners 212.600.1902 Email Contact Media Contact:Eliza Schleifstein Argot Partners 212.600.1902 Email Contact
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