Prepared and Filed by St Ives Burrups

Filed Pursuant to Rule 425
Under the Securities Act of 1933
And Deemed Filed Pursuant to Rule 14a-12
Under the Securities Exchange Act of 1934

Filed by Enzon Pharmaceuticals, Inc.
Subject Company: Enzon Pharmaceuticals, Inc.
NPS Pharmaceuticals, Inc.

Commission File No. 000-12957

The following materials were distributed by Enzon Pharmaceuticals, Inc. (“Enzon”) and NPS Pharmaceuticals, Inc. (“NPS”) to attendees of NPS’ Second Annual Investor/Analyst Meeting held on March 11, 2003 in New York, New York to discuss the proposed business combination between Enzon and NPS.

SCIENCE, PIPELINE, PRODUCTS: Creating a Biotechnology Leader
Enzon Logo NPS Logo

     

 

Safe Harbor

Cautionary Statement For The Purpose Of The “Safe Harbor” Provisions Of The Private Securities Litigation Reform Act Of 1995

           This presentation contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements contained in this presentation include statements about future financial and operating results and the proposed NPS/Enzon merger. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. For example, if either of the companies do not receive required stockholder or governmental approvals or fail to satisfy other conditions to closing, the transaction will not be consummated. In any forward-looking statement in which NPS or Enzon expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the risk that the NPS and Enzon businesses will not be integrated successfully; costs related to the proposed merger, failure of the NPS or Enzon stockholders to approve the proposed merger; and other economic, business, competitive and/or regulatory factors affecting NPS’ and Enzon’s businesses generally as set forth in NPS’s and Enzon’s filings with the SEC, including their Annual Reports on Form 10-K for their respective most recent fiscal years, especially in the Management’s Discussion and Analysis section, their most recent Quarterly Reports on Form 10-Q and their Current Reports on Form 8-K. NPS and Enzon are under no obligation to (and expressly disclaim any such obligation to) update or alter their forward-looking statements whether as a result of new information, future events or otherwise.

 
     
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Safe Harbor continued

Additional Information And Where To Find It

          In connection with the proposed NPS/Enzon merger, NPS, Enzon and Momentum Merger Corporation (which will be renamed by NPS and Enzon in connection with the proposed merger) intend to file a joint proxy statement/prospectus with the Securities and Exchange Commission (the “SEC”) in connection with the transaction described herein. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION DESCRIBED HEREIN. Investors and security holders may obtain a free copy of the joint proxy statement/prospectus (when it is available) and other documents filed by NPS and Enzon with the SEC at the SEC’s web site at www.sec.gov or by contacting NPS at 801-583-4939 and through NPS’s website at www.npsp.com, or by contacting Enzon at 908-541-8678 and through Enzon’s website at www.enzon.com.

          NPS and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of NPS and Enzon in connection with the transaction described herein. Information regarding the special interests of these directors and executive officers in the transaction described herein will be included in the joint proxy statement/prospectus described above. Additional information regarding these directors and executive officers is also included in NPS’ proxy statement for its 2002 Annual Meeting of Stockholders, which was filed with the SEC on or about April 19, 2002. This document is available free of charge at the SEC’s web site at www.sec.gov or by contacting NPS at 801-583-4939 and through NPS’ website at [www.npsp.com]

          Enzon and its directors and executive officers also may be deemed to be participants in the solicitation of proxies from the stockholders of Enzon and NPS in connection with the transaction described herein. Information regarding the special interests of these directors and executive officers in the transaction described herein will be included in the joint proxy statement/prospectus described above. Additional information regarding these directors and executive officers is also included in Enzon’s proxy statement for its 2002 Annual Meeting of Stockholders, which was filed with the SEC on or about October 28, 2002. This document is available free of charge at the SEC’s web site at www.sec.gov or by contacting Enzon at 908-541-8678.

 
     
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  Our Mutual Goal  

 

 

 

 
 
  To Build a Sustainable Top-Tier Biotech Based On:  
       
  A deep, diversified and sustainable pipeline  
     
     A clearly defined pathway to profitability  
     
     A fully integrated infrastructure and stable financial position  
     
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A Fully Integrated Biotechnology Leader

 

 
     

 

Platform Technologies

  Preclinical   Phase I   Phase II   Phase III   Commercialization
& Manufacturing
 
                         
  PEGylation   Single-Chain Antibodies         Prothecan              
                        PEG-INTRON  
  Calcium Receptors   PEG-Cytoxics   NPS 1776         Cinacalcet   ABELCET  
  Molecular Biology   Inhaled Leuprolide   NPS 1506   ALX-0600   PREOS   ADAGEN  
  Protein Chemistry       Calcilytics   Cinacalcet         ONCASPAR  
  Medicinal Chemistry   Glycine
Re-uptake Inhibitors
                DEPOCYT  
  High-throughput Screening   Metabotropic Glutamate Receptors                      
     
      NPS
      ENZON
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Synergies Expand and Accelerate
Value Creation
 
       
       
  Expand pipeline development  
    e.g., CNS product opportunities  
        
     Accelerate program development  
    e.g., ALX-0600 for multiple indications  
       
     Leverage financial strength and commercial capacity  
    e.g., in-license products and technologies, and optimize PREOS partnership  
       
       
     
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Transaction Specifics  
       
  Summary:  
    Stock for stock exchange  
    Timing  
       Joint proxy filed in March  
      Expected shareholder vote in June*  
       
  New Company Structure:  
    Hunter Jackson, Executive Chairman of the Board  
    Arthur Higgins, Chief Executive Officer  
    Board Split: 6 from NPS, 4 from Enzon  
    Management drawn from both companies  
       
    *Subject to stockholder and regulatory approvals and other customary closing conditions.  
     
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The New Entity
 
 
 
 
 
 
 
 
 
 
 
 
 
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The Merger Creates a Top-Tier Biotech
       
  Management with a proven record of building businesses  
       
  Drug discovery and development expertise  
       
  Manufacturing capacity and experience  
       
  Commercial infrastructure  
       
  Strong, dependable revenues  
       
       
       
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Post Merger Strengths
       
  Fully integrated:  
    From drug discovery through manufacturing and commercialization  
       
  Innovative and robust pipeline:  
    ~$150M R&D budget *  
    Phase III: 2 programs  
    Phase II: 3 programs  
    >10 early stage programs  
    Multiple platform technologies  
       
       
       
    *Based upon 2003 pro-forma financials  
       
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Post Merger Strengths
       
  Solid financial infrastructure:*  
    Revenue of ~$200M from 5 marketed products  
    >$300 million cash (at closing)  
    Solid cash flow  
       
  Significant partnerships validate R&D strengths:  
       
    Amgen Janssen MicroMet  
       
    AstraZeneca Kirin Nektar  
       
    GSK Schering-
Plough
SkyePharma  
       
       
       
    *Based upon 2003 pro-forma financials  
       
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  Pipeline, Products & Technologies  
     
     
     
     
     
     
     
     
     
     
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Product Pipeline & Marketed Products
         
 
Product
Preclinical/
Research
Phase I Phase II Phase III Marketed     Partner
 
  PEG-INTRON
blue arrow extending to Marketed   Schering-Plough
  ABELCET
blue arrow extending to Marketed   Proprietary
  ADAGEN
blue arrow extending to Marketed   Proprietary
  ONCASPAR blue arrow extending to Marketed   Proprietary
  DEPOCYT
blue arrow extending to Marketed   Proprietary
  Cinacalcet HCl
yellow arrow extending to Phase III     Amgen/Kirin
  PREOS
yellow arrow extending to Phase III     Proprietary
  PROTHECAN
blue arrow extending to Phase II     Proprietary
  ALX-0600
yellow arrow extending to Phase II     Proprietary
  Cinacalcet HCl
yellow arrow extending to Phase II     Amgen/Kirin
  NPS 1776
yellow arrow extending to Phase I         Proprietary
  NPS 1506
yellow arrow extending to Phase I         Proprietary
  Calcilytics
yellow arrow extending to Phase I         GSK
  PEG-Cytotoxics
blue arrow extending to Preclinical Research           Proprietary
  Gly-T Inhibitors
yellow arrow extending to Preclinical Research           Janssen
  mGluRs
yellow arrow extending to Preclinical Research           AstraZeneca
  SCA’s
blue arrow extending to Preclinical Research           Micromet
  Inhaled Leuprolide
blue arrow extending to Preclinical Research           Nektar
                 
      blue arrow = Enzon   yellow arrow = NPS    
 
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5 Marketed Products
       
       
  PEG-INTRON ®  
       
  ABELCET ®  
       
  ONCASPAR ®
 
       
  DEPOCYT ®
 
       
  ADAGEN ®
 
       
       
         
         
         
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PEG-INTRON
 
       
  HCV—an under-treated epidemic  
    Est. 4 million U.S./4 Million EU  
       
  Re-treatment patients  
    ~200,000 patients  
       
  Maintenance therapy  
    CO-PILOT study ongoing  
       
  Geographic & indication expansion  
    Japan – Est. 2 million infected  
    Oncology/HIV  
       
       
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PEG-INTRON:
A Strong Revenue Base
       
  Pegylated alpha-interferon scripts increasing in U.S.  
       
  Roche share of new scripts holding at approximately 20% in U.S.  
       
  Japan represents significant upside beginning in 2005  
       
  Solid intellectual property position  
       
  Potential for price increases and expanded indications  
       
       
       
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  ABELCET is the market leader and formulation of choice  
       
  Amphoterin B lipid complex with reduced nephrotoxicity  
       
  Possible market expansion through:  
    Focused marketing and medical effort  
    Evaluation of new treatment paradigms  
       
       
       
       
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  Additional Marketed Products  
       
  ONCASPAR (pegylated asparaginase)  
    Indicated for acute lymphoblastic leukemia  
    Stable sales growth  
       
  DEPOCYT (cytarabine liposome injection)  
    Treatment of neoplastic meningitis  
    Significant growth potential
 
       
  ADAGEN (pegylated bovine ADA)  
    ADA deficient SCIDS (Bubble Boy Disease)
 
    Lifetime therapy for limited population  
       
       
       
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  2 Phase III Clinical Products  
         
     
         
  PREOS™   Cinacalcet HCl  
         
         
         
         
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  PREOS™
(Intact Human Parathyroid Hormone)
 
           
  Stimulates natural bone growth, with potential for:    
    Stronger, healthier bones    
    A lower risk of fracture    
         
         
         
           
  Recent PaTH data support Phase II results and possible PREOS and bisphosphonate combination    
           
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PREOS
       
  Expect to compete in a large and growing market  
       
  Pivotal Phase III study to be completed in September 2003
 
       
  FDA submission targeted for mid-2004  
       
  Launch anticipated by late 2005  
       
  Combined company more able to aggressively execute development program and negotiate an optimal partnership  
       
       
       
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  Cinacalcet HCl  
           
  Novel treatment for hyperparathyroidism (HPT)    
         
  Market opportunity (U.S.)    
    Primary HPT
500,000 patients
   
    Secondary HPT
280,000 dialysis patients
   
    Secondary HPT
800,000 predialysis patients
   
         
         
         
           
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Cinacalcet HCl
       
  Phase III program on-going by Amgen  
       
  Amgen confirms 2H 03 NDA filing  
       
  First-in-class molecule in growing market  
       
  Potential for significant royalty stream  
       
       
       
       
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Product Pipeline & Marketed Products
         
 
Product
Preclinical/
Research
Phase I Phase II Phase III Marketed     Partner
 
  PEG-INTRON
blue arrow extending to Marketed   Schering-Plough
  ABELCET
blue arrow extending to Marketed   Proprietary
  ADAGEN
blue arrow extending to Marketed   Proprietary
  ONCASPAR blue arrow extending to Marketed   Proprietary
  DEPOCYT
blue arrow extending to Marketed   Proprietary
  Cinacalcet HCl
yellow arrow extending to Phase III     Amgen/Kirin
  PREOS
yellow arrow extending to Phase III     Proprietary
  PROTHECAN
blue arrow extending to Phase II     Proprietary
  ALX-0600
yellow arrow extending to Phase II     Proprietary
  Cinacalcet HCl
yellow arrow extending to Phase II     Amgen/Kirin
  NPS 1776
yellow arrow extending to Phase I         Proprietary
  NPS 1506
yellow arrow extending to Phase I         Proprietary
  Calcilytics
yellow arrow extending to Phase I         GSK
  PEG-Cytotoxics
blue arrow extending to Preclinical Research           Proprietary
  Gly-T Inhibitors
yellow arrow extending to Preclinical Research           Janssen
  mGluRs
yellow arrow extending to Preclinical Research           AstraZeneca
  SCA’s
blue arrow extending to Preclinical Research           Micromet
  Inhaled Leuprolide
blue arrow extending to Preclinical Research           Nektar
                 
      blue arrow = Enzon   yellow arrow = NPS    
 
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  Operational Overview  
     
     
     
     
     
     
     
     
     
     
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Combined Management Team Includes:
 
Hunter Jackson, Ph.D. (NPS)
Executive Chairman of the Board
 
Arthur J. Higgins (Enzon)
Chief Executive Officer
 
Ulrich Grau, Ph.D. (Enzon)
Chief Scientific Officer
 
Kenneth J. Zuerblis (Enzon)
Vice President, Finance, Chief Financial Officer & Secretary
 
Thomas B. Marriott, Ph.D. (NPS)
Vice President Development Research
 
Alan Mueller, Ph.D. (NPS)
Vice President Discovery Research
 
 
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Locations
Map showing locations:

Research in Salt Lake City, Utah;
Manufacturing in Indianapolis, IN;
Research in Toronto, Canada;
Manufacturing in Toronto, Canada;
Research in Piscataway, NJ;
Manufacturing in South Plainfield, NJ;
and Headquarters in Bridgewater, NJ
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Selected Pro-Forma Financials
 
 
    Pro-Forma Operating Summary (US$ in millions)    
    Year Ending December 31, 2002 Pro Forma 2002    
 
 
           
  Product Revenues:        
 
Sales
$ 31.5    
 
Royalties
$ 82.6    
    $ 114.1 *  
  *(Current estimated annualized revenues = $200.0)        
           
  Expenses:        
 
SG&A
$ 48.0    
 
R&D
$ 102.0    
           
  Long-Term Convertible Debt $ 400.0    
           
  Ending Cash Balance $ 380.0    
           
           
           
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Expected Milestones and News Flow
                 
              arrowhead
  Type
2003
  2004          
2005   
         
 




 
  Clinical Data
Phase III cinacalcet HCl data in secondary HPT
 
  Regulatory
File cinacalcet NDA
 
  Clinical Data
PREOS 2-year rat toxicology study data
 
  Clinical Data
PREOS Top Study completed
 
  Clinical Data
Phase IIa results from PROTHECAN
 
  Clinical Data
Initiate additional PII/III ALX-0600 (SBS)
 
  Market Data  
Results from HCV maintenance studies
  Regulatory    
File PREOS NDA
  Regulatory    
Initiate Prothecan Phase III clinical program
  Clinical Data    
cinacalcet HCl approval & launch
  Clinical Data         Phase III PREOS POWER study data
  Regulatory         Phase III PREOS TOP study data (full 18 months)
  Regulatory        
File IND for two SCA Projects
  Regulatory        
File IND on inhaled Leuprolide (Nektar) for cancer
  Regulatory           PREOS approval in U.S
 








                   
     = NPS    = Enzon  
           
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  Synergies Expand and Accelerate
Value Creation
 
       
  Expand pipeline development  
    e.g., CNS product opportunities  
       
  Accelerate program development  
    e.g., ALX-0600 for multiple indications  
       
  Leverage financial strength and commercial capacity  
    e.g., in-license products and technologies, and optimize PREOS partnership  
       
       
Enzon Logo NPS Logo

 
2007… Where We’re Going
       
  Revenue > $500M  
       
  Strong, balanced clinical pipeline  
       
  R&D budget > $180M  
       
  EBITDA > $100M  
       
  Industry leading growth rate  
       
  Cash > $500M  
       
       
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SCIENCE, PIPELINE, PRODUCTS: Creating a Biotechnology Leader
Enzon Logo NPS Logo