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UNITED STATES |
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SECURITIES AND EXCHANGE COMMISSION |
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WASHINGTON, D.C. 20549 |
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FORM 8-K |
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CURRENT REPORT |
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Pursuant to Section 13 or 15(d) of the |
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Securities Exchange Act of 1934 |
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Date of Report (Date of earliest event reported) |
February 17, 2011 |
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ENZON PHARMACEUTICALS, INC. |
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(Exact name of registrant as specified in its charter) |
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Delaware |
0-12957 |
22-2372868 |
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(State or other jurisdiction of incorporation) |
(Commission File No.) |
(IRS Identification No.) |
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685 Route 202/206, Bridgewater, New Jersey |
08807 |
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(Address of principal executive offices) |
(Zip Code) |
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Registrant’s telephone number, including area code |
(908) 541-8600 |
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(Former name or former address, if changed since last report) |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b) |
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Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On February 17, 2011, Enzon Pharmaceuticals, Inc. issued a press release reporting certain financial and other information for the year ended December 31, 2010. A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated by reference into this Item 2.02.
The information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that Section, nor shall such information be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in that filing.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
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Exhibit No. |
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Description |
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99.1 |
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Press Release of Enzon Pharmaceuticals, Inc. dated February 17, 2011 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: February 17, 2011
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By: |
/s/ Andrew Rackear |
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Andrew Rackear |
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Vice President and General Counsel |
Exhibit 99.1
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For Immediate Release |
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Investor Contact: |
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Andrea Rabney |
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Argot Partners |
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212.600.1902 |
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andrea@argotpartners.com |
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Media Contact: |
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Meghan Feeks |
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Argot Partners |
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212.600.1902 |
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meghan@argotpartners.com |
ENZON
REPORTS 2010 RESULTS
--Pipeline development continues to advance
as transformation to a
biotechnology company is complete--
PISCATAWAY, NJ – February 17, 2011 – Enzon Pharmaceuticals, Inc. (Nasdaq: ENZN) today announced its fourth-quarter and full-year 2010 financial results. For the three months ended December 31, 2010, Enzon reported a loss from continuing operations of $10.4 million or $0.17 per diluted share, as compared to a loss from continuing operations of $14.6 million or $0.32 per diluted share for the fourth quarter of 2009. For the full year ended December 31, 2010, Enzon reported a loss from continuing operations of $3.6 million or $0.06 per diluted share, compared to a loss from continuing operations of $57.2 million or $1.26 per diluted share for the full year ended December 31, 2009.
“Divestiture of the specialty pharmaceutical business and the subsequent operational restructuring in 2010 has enabled a return of value to shareholders while positioning Enzon to build value through its focused oncology development strategy,” said Alex Denner, Chairman of the Board.
“In an effort to maximize operational efficiencies, we have implemented a number of cost-saving measures including two strategic restructuring initiatives and consolidating all operations from Bridgewater into Piscataway, minimizing our cash burn,” said Ralph del Campo, Chief Operating Officer.
2010 Highlights
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Completed transformation from a biopharmaceutical company with research and development, manufacturing and marketing operations to a biotechnology company focused on advancing the Company’s PEG-SN38 and locked nucleic acid (LNA) research and development programs. |
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Initiated enrollment in a Phase II PEG-SN38 study for patients with metastatic breast cancer. |
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Investigational New Drug application (IND) for the androgen receptor (AR) antagonist was filed and accepted. |
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Entered into collaboration arrangement with the National Cancer Institute for PEG-SN38 and hypoxia-inducible factor-1α (HIF-1α) antagonist programs. |
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Completed a $50.0 million common share repurchase program and initiated a $200.0 million share repurchase program. |
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Awarded a $1.2 million grant as part of the U.S. government’s Qualifying Therapeutic Discovery Projects Program. |
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2011 Outlook and Goals |
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In 2011, Enzon will continue to focus on advancing the development of its novel compounds. These efforts will include ongoing enrollment of patients in the PEG-SN38 Phase II studies for colorectal and breast cancer and the Phase I study evaluating PEG-SN38 in pediatric patients with cancer. Enzon also will continue to advance and explore development opportunities for LNA compounds, including the HIF-1α, Survivin and AR antagonists. Enzon’s transitional support activities to the purchaser of the specialty pharmaceutical business are nearing completion. In January 2011, Enzon received notice that the sBLA related to SS Oncaspar had been approved, leading to the receipt of a $5.0 million milestone payment in 2011 from the purchaser of the specialty pharmaceutical business. |
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Summary of Financial Results |
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Revenues |
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The following table reflects the revenues for each of the three-month and twelve-month periods ended December 31, 2010 and 2009. |
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Three Months Ended |
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Twelve Months Ended |
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December 31, |
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% |
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December 31, |
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% |
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2010 |
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2009 |
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2010 |
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2009 |
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Royalties |
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$ |
10.6 |
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$ |
12.2 |
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(13 |
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$ |
44.9 |
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$ |
51.4 |
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(13 |
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Sale of in-process R&D |
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— |
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40.9 |
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n.m. |
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Contract R&D (1) |
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1.8 |
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— |
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n.m. |
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9.3 |
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— |
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n.m. |
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Miscellaneous (1) |
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0.1 |
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— |
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n.m. |
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2.7 |
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— |
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n.m. |
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Total Revenues |
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$ |
12.5 |
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$ |
12.2 |
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n.m. |
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$ |
97.8 |
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$ |
51.4 |
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n.m. |
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n.m. – not meaningful |
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(1) |
Primarily revenues received in connection with transitional services related to the sale of the specialty pharmaceutical business. |
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Royalty Revenue |
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Royalty revenue declined approximately 13 percent in 2010 compared to 2009 for both the quarter and the full year. This was primarily the result of declining sales of PEGINTRON, marketed by Merck & Co., Inc. Enzon’s share of royalty revenue related to PEGINTRON was down 16 percent for the quarter and 11 percent for the year. The remaining reduction in royalty revenues for the quarter and full year was due to the absence of Pegasys royalties in 2010 partially offset by CIMZIA growth and the first-time recognition of royalties on certain sales of the divested products, Oncaspar and Adagen. |
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2
Research and Development
The Company’s research and development expenses
related to its current portfolio were $14.0 million for the three months ended
December 31, 2010, as compared to $11.3 million for the three months ended
December 31, 2009. The increase was primarily due to the continued advancement
of Phase II studies for PEG-SN38. For the full year 2010, research and
development spending related to the current portfolio was $49.9 million as
compared to $45.6 million in 2009. In addition to spending related to the
PEG-SN38 Phase II studies, the Company also increased spending in 2010 on
activities supporting the filing of an IND for the AR antagonist which was
accepted in October 2010, and the expenditure of $7.0 million in milestone
payments related to ongoing advancement of its LNA targets compared to $3.0
million of milestones paid in 2009.
General and Administrative
General and administrative expenses decreased to
$4.9 million for the three months ended December 31, 2010, as compared to $10.2
million for the same period in 2009. For the full year of 2010, the Company
incurred general and administrative expenses of $25.4 million versus $37.6
million in 2009. Expenses were reduced in 2010 compared to 2009 as a result of
ongoing cost containment efforts and the contraction of corporate services and
overhead costs associated with the first-quarter 2010 sale of the specialty
pharmaceutical business. The restructuring program implemented during the first
quarter of 2010 and the resulting reduction in employees resulted in lower
payroll costs during the latter half of the year. The December 2010
restructuring is expected to reduce payroll costs in the latter half of 2011.
Research and Development and General and
Administrative Expenses Related to Divested Business
Prior to the sale of the specialty pharmaceutical
business, the Company incurred research and development expenses related to the
marketed products that were divested in the sale. Subsequently, the Company
incurred expenses in support of the transitional services it was providing to
the purchaser of the business for both research and development efforts and
general and administrative support. Compensation for these services, including
a mark-up, is reflected in revenues – contract research and development and
miscellaneous income. The related expenses have been reported separately from
those of the Company’s research and development pipeline and ongoing general
and administrative expenses as contracted services.
Restructuring Charge
The Company incurred restructuring costs totaling
$3.0 million in the fourth quarter of 2010 and $14.0 million for the full year
as it continued to streamline operations and enhance efficiencies. The Company
recognized $0.7 million related to severance costs in 2009. The majority of the
expense related to employee separation benefits while the remainder related to
a contractual lease commitment and write-off of certain leasehold improvements.
During the first quarter of 2010, a workforce reduction involving 64 employees
resulted in an expense of $6.1 million for separation costs for employees
affected by the sale of the specialty pharmaceutical business. The Company also
expensed $3.6 million for severance payments and benefits that were payable to
the Company’s former CEO who resigned during the first quarter of 2010. The
fourth-quarter 2010 restructuring, which will result in the termination of 33
employees resulted in restructuring costs totaling $3.0 million that were
recognized at the time the affected employees were notified. The majority of
the terminations related to the December 2010 restructuring will occur during
the first quarter of 2011, and separation payments will be made for up to one
year following the respective terminations.
3
Other Income (Expense)
Net other income (expense) comprises investment
income, interest expense, and other non-operating items. The Company reported
net other income of approximately $0.1 million for the three months ended
December 31, 2010, and net other expense of $1.8 million for the same period
ended in 2009. For the full year of 2010, net other expense was $3.4 million
compared to net other expense of $2.2 million in 2009. During 2010, $115.5
million of the Company’s convertible notes were converted into shares of common
stock in connection with the sale of the specialty pharmaceutical business,
significantly reducing interest expense for the year. In 2009, the Company
purchased $20.4 million of its convertible notes at a significant discount to
par. This resulted in a gain of $4.5 million and a reduction in interest
expense of $1.2 million in 2009. The decreases in interest expense were
somewhat offset by a decrease in investment income. The Company recognized an
impairment of one of its investment holdings during 2010 in the amount of $0.9
million. In the fourth quarter of 2010, the Company received a $1.2 million
grant from the federal government related to the Qualifying Therapeutic
Discovery Project Program.
Income Tax Benefit
During 2010, the Company recorded net tax benefits
of $0.3 million compared to $2.1 million in 2009. The net tax benefits in 2010
included a reduction of foreign taxes due to a transfer price adjustment and a
tax benefit for research and development and AMT tax credits in lieu of bonus
depreciation. The net tax benefits in 2009 included a reimbursement related to
a net operating loss carrybacks and a transfer price adjustment.
Cash and Investments
Total cash reserves, which include cash, cash
equivalents, short-term investments, and marketable securities, were $460.1
million as of December 31, 2010, as compared to $199.7 million as of December
31, 2009. The sale of the specialty pharmaceutical business in 2010 was the
single largest reason for the rise in cash reserves. The sale contributed approximately
$300.0 million of cash, inclusive of the $40.9 million of proceeds related to
the sale of in-process research and development. The Company expended
approximately $48.0 million during 2010 and $2.0 million during December 2009
to repurchase a combined total of 4.7 million shares of the Company’s
outstanding common stock pursuant to a $50.0 million share repurchase plan
announced on December 3, 2009. In late December 2010, the Company initiated a
$200.0 million common stock repurchase program against which purchases of $0.4
million were made in 2010. Partially offsetting these cash expenditures during
2010, approximately $28.8 million of cash was received as the result of
employee exercises of stock options, net of withholding taxes. During 2009, the
Company expended approximately $15.6 million to purchase its convertible notes.
Discontinued Operations
Prior-year results of operations of the divested
specialty pharmaceutical business were reclassified and reported as
discontinued operations. The net gain on the sale, excluding $40.9 million
reported in continuing operations as operating revenue from the sale of
in-process research and development, amounted to $175.4 million and was
recorded in discontinued operations. Research and development activities
related to the Company’s divested products continued through the date of the
divestiture and are reported as part of continuing operations in both 2010 and
2009. Subsequent to the sale, the Company continued to provide research and
development support to the acquiring company related to the divested products
and was compensated for the work.
4
Adjusted Financial Results
For the twelve months ended December 31, 2010,
Enzon reported an adjusted loss from continuing operations of $34.3 million or
$0.59 per diluted share, as compared to an adjusted loss from continuing
operations of $36.4 million or $0.81 per diluted share for the full year ended
December 31, 2009.
Reconciliation of GAAP Loss from Continuing
Operations to Adjusted Loss from Continuing Operations
The following table reconciles the Company’s loss
and loss per diluted share from continuing operations as determined in
accordance with U.S. generally accepted accounting principles (GAAP) to its
adjusted loss and loss per diluted share from continuing operations for the
twelve months ended December 31, 2010 and 2009:
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Twelve
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Twelve
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(In
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(In
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Loss
from |
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Per
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Loss
from |
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Per
diluted |
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GAAP loss from continuing operations |
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$ |
(3,600 |
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$ |
(0.06 |
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$ |
(57,202 |
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$ |
(1.26 |
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Net adjustments to GAAP: (7) |
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Sale of in-process research and development (1) |
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(40,900 |
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(0.70 |
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— |
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— |
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Restructuring charges (2) |
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14,026 |
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0.24 |
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693 |
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0.01 |
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QTDP Grant (3) |
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(1,222 |
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(0.02 |
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— |
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— |
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Transition services revenues (4) |
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(11,711 |
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(0.20 |
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— |
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— |
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Specialty and contracted services research and development expense (4) |
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7,135 |
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0.12 |
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24,587 |
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0.54 |
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Contracted general and administrative expense (4) |
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1,957 |
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0.03 |
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— |
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— |
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Net realized gain related to the repurchase of debt (5) |
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— |
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— |
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(4,501 |
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(0.10 |
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Adjusted loss from continuing operations (6) |
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$ |
(34,315 |
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$ |
(0.59 |
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$ |
(36,423 |
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$ |
(0.81 |
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Basic and diluted shares outstanding |
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58,466 |
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45,186 |
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(1) |
Adjusted financial results exclude the sale of in-process research and development associated with the sale of the Company’s specialty pharmaceutical business. |
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(2) |
Adjusted financial results exclude restructuring charges incurred in both years primarily related to severance charges for employees terminated either directly or indirectly due to the sale of the specialty pharmaceutical business. Also included in the total for 2010 were severance paid to the former CEO and the write-off of certain leasehold improvements located in excess corporate office space. |
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(3) |
Adjusted financial results exclude the award of a $1.2 million Qualifying Therapeutic Discovery Project Grant from the U.S. government. |
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(4) |
Adjusted financial results exclude revenues received from the transition services agreement the Company has with the purchaser of the specialty pharmaceutical business, as they are not long-term in nature ($9,273 research and development and $2,438 general and administrative). For the same reason, the underlying expenses incurred by the Company in support of these |
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transitional services are excluded, as are the expenses the Company incurred in 2009 and January 2010 in research and development related to divested products. |
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(5) |
Adjusted financial results exclude gains related to the 2009 repurchase of the Company’s 4% notes at a discount to par (plus accrued interest), partially offset by the write-off of related deferred debt issuance costs. |
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(6) |
Adjusted loss and adjusted loss per diluted share from continuing operations, as the Company defines them, may differ from similarly named measures used by other entities and consequently could be misleading unless all entities calculated and defined such items in the same manner. The Company believes that investors’ understanding of its performance is enhanced by disclosing adjusted loss and adjusted loss per diluted share from continuing operations reflecting adjustments for certain items that the Company deems to be non-recurring. |
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(7) |
Adjustments have not been tax-effected due to an estimated annual effective tax rate of zero. |
Conference Call and Webcast
Enzon will be hosting a conference call on Thursday, February 17, 2011
at 5:00 pm Eastern time (ET). All interested parties may access the call by
using the following information:
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Domestic Dial-In Number: |
(877) 561-2748 |
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International Dial-In Number: |
(720) 545-0044 |
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Access Code: |
Enzon |
The call will also be available via live audio webcast on the Enzon website, by going to the ‘Calendar of Events’ page in the ‘Investors’ section. Listeners should go to the website at least fifteen minutes before this event to download and install any necessary audio software. For those unable to attend the live audio webcast, a replay will be available beginning approximately one hour after the event. Additionally, a telephonic rebroadcast also will be available following the call. The rebroadcast will begin on Thursday, February 17, 2011 at approximately 8:00 pm ET and end on Thursday, February 24, 2011 at approximately 11:59 pm ET. The call may be accessed using the following information:
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Domestic Dial-In Number: |
(800) 642 - 1687 |
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International Dial-In Number: |
(706) 645 - 9291 |
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Conference ID: |
43332453 |
About Enzon
Enzon Pharmaceuticals, Inc. is a biotechnology company dedicated to the research and development of innovative therapeutics for cancer patients with high unmet medical needs. Enzon’s drug-development programs utilize two platforms - Customized PEGylation Linker Technology (Customized Linker Technology®) and third-generation mRNA-targeting agents utilizing the Locked Nucleic Acid (LNA) technology. Enzon currently has four compounds in clinical development and multiple novel LNA targets in preclinical research. Enzon receives royalty revenues from licensing arrangements with other companies related to sales of products developed using its proprietary Customized Linker Technology. Further information about Enzon and this press release can be found on the Company’s website at www.enzon.com.
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
6
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 competitiive 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 U.S. Securities and Exchange Commission, including Enzon’s most recent Annual Report on Form 10-K for the year ended December 31, 2009. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. No assurance can be given that the future results covered by the forward-looking statements will be achieved. All information in this press release is as of the date of this press release and Enzon does not intend to update this information.
7
Enzon Pharmaceuticals, Inc. and Subsidiaries
Consolidated Statements of Operations
Three Months ended December 31,
2010 and 2009
(In thousands, except per-share amounts)
(Unaudited)
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December 31, |
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December 31, |
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Revenues: |
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Royalties |
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$ |
10,549 |
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$ |
12,193 |
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Contract research and development |
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1,845 |
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— |
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Miscellaneous income |
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124 |
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— |
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Total revenues |
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12,518 |
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12,193 |
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Operating expenses: |
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Research and development |
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14,031 |
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11,307 |
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Research and development – specialty and contracted services |
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1,120 |
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5,137 |
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General and administrative |
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4,906 |
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10,226 |
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General and administrative – contracted services |
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|
50 |
|
|
— |
|
|
Restructuring charge |
|
|
2,974 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses |
|
|
23,081 |
|
|
26,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(10,563 |
) |
|
(14,477 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Investment income, net |
|
|
573 |
|
|
1,045 |
|
|
Interest expense |
|
|
(1,480 |
) |
|
(2,751 |
) |
|
Other, net |
|
|
1,040 |
|
|
(50 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
133 |
|
|
(1,756 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before income tax benefit |
|
|
(10,430 |
) |
|
(16,233 |
) |
|
|
|
|
|
|
|
|
|
|
Income tax benefit |
|
|
(1 |
) |
|
(1,629 |
) |
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations |
|
|
(10,429 |
) |
|
(14,604 |
) |
|
Income from discontinued operations, net of income tax |
|
|
— |
|
|
14,040 |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(10,429 |
) |
$ |
(564 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share – continuing operations – basic and diluted |
|
$ |
(0.17 |
) |
$ |
(0.32 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings per common share – discontinued operations – basic and diluted |
|
$ |
(0.00 |
) |
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share – basic and diluted |
|
$ |
(0.17 |
) |
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average shares – basic and diluted |
|
|
59,747 |
|
|
45,394 |
|
|
|
|
|
|
|
|
|
|
8
Enzon Pharmaceuticals, Inc. and Subsidiaries
Consolidated Statements of Operations
Twelve Months ended December 31,
2010 and 2009
(In thousands, except per-share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
||
|
|
|
|
|
|
|
||
|
Revenues: |
|
|
|
|
|
|
|
|
Royalties |
|
$ |
44,940 |
|
$ |
51,408 |
|
|
Sale of in-process research and development |
|
|
40,900 |
|
|
— |
|
|
Contract research and development |
|
|
9,273 |
|
|
— |
|
|
Miscellaneous income |
|
|
2,752 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
97,865 |
|
|
51,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
49,883 |
|
|
45,639 |
|
|
Research and development – specialty and contracted services |
|
|
7,135 |
|
|
24,587 |
|
|
General and administrative |
|
|
25,439 |
|
|
37,582 |
|
|
General and administrative – contracted services |
|
|
1,957 |
|
|
— |
|
|
Restructuring charge |
|
|
14,026 |
|
|
693 |
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses |
|
|
98,440 |
|
|
108,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(575 |
) |
|
(57,093 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Investment income, net |
|
|
3,465 |
|
|
4,312 |
|
|
Interest expense |
|
|
(7,115 |
) |
|
(11,514 |
) |
|
Other-than-temporary investment impairment loss |
|
|
(896 |
) |
|
— |
|
|
Other, net |
|
|
1,184 |
|
|
5,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,362 |
) |
|
(2,194 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before income tax benefit |
|
|
(3,937 |
) |
|
(59,287 |
) |
|
|
|
|
|
|
|
|
|
|
Income tax benefit |
|
|
(337 |
) |
|
(2,085 |
) |
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations |
|
|
(3,600 |
) |
|
(57,202 |
) |
|
|
|
|
|
|
|
|
|
|
Income and gain from discontinued operations, net of income tax |
|
|
179,002 |
|
|
57,885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
175,402 |
|
$ |
683 |
|
|
|
|
|
|
|
|
|
|
|
Loss per common share – continuing operations – basic and diluted |
|
$ |
(0.06 |
) |
$ |
(1.26 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings per common share – discontinued operations – basic and diluted |
|
$ |
3.06 |
|
$ |
1.28 |
|
|
|
|
|
|
|
|
|
|
|
Net income per common share – basic and diluted |
|
$ |
3.00 |
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares – basic and diluted |
|
|
58,466 |
|
|
45,186 |
|
|
|
|
|
|
|
|
|
|
9
Enzon Pharmaceuticals, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
December 31, 2010 and 2009
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
||
|
|
|
|
|
|
|
||
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and short-term investments |
|
$ |
428,700 |
|
$ |
104,110 |
|
|
Other current assets |
|
|
5,916 |
|
|
6,928 |
|
|
Current assets of discontinued operations |
|
|
— |
|
|
34,174 |
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
434,616 |
|
|
145,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
21,574 |
|
|
26,534 |
|
|
|
|
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
Marketable securities |
|
|
31,394 |
|
|
95,636 |
|
|
Other assets |
|
|
1,273 |
|
|
2,863 |
|
|
Noncurrent assets of discontinued operations |
|
|
— |
|
|
62,504 |
|
|
|
|
|
|
|
|
|
|
|
Total other assets |
|
|
32,667 |
|
|
161,003 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
488,857 |
|
$ |
332,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
18,387 |
|
$ |
11,728 |
|
|
Current liabilities of discontinued operations |
|
|
— |
|
|
13,269 |
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
18,387 |
|
|
24,997 |
|
|
|
|
|
|
|
|
|
|
|
Notes payable |
|
|
134,499 |
|
|
250,050 |
|
|
Other liabilities |
|
|
4,114 |
|
|
4,419 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
157,000 |
|
|
279,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
331,857 |
|
|
53,283 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
488,857 |
|
$ |
332,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
|
58,818 |
|
|
45,318 |
|
|
|
|
|
|
|
|
|
|
10