UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 2, 2012

 

ENZON PHARMACEUTICALS, INC.

(Exact name of registrant as specified in its charter)


 

 

 

Delaware

0-12957

22-2372868

(State or other jurisdiction of

(Commission File Number)

(IRS Employer Identification No.)

incorporation)

 

 

 

 

 

20 Kingsbridge Road, Piscataway, New Jersey

08854

(Address of principal executive offices)

(Zip Code)

(732) 980-4500
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

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:

 

 

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

o

Pre-commencement communications 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 May 2, 2012, Enzon Pharmaceuticals, Inc. issued a press release reporting certain financial and other information for the first quarter of 2012. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K 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.


 

 

 

(d)  

 

Exhibits


 

 

 

Exhibit
No.

 

Description


 


99.1

 

Press Release of Enzon Pharmaceuticals, Inc. dated May 2, 2012



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.

 

 

 

 

ENZON PHARMACEUTICALS, INC.

 

 

          (Registrant)

 

Date: May 2, 2012

By:

/s/ Andrew Rackear

 

 


 

Name: Andrew Rackear

 

 

 

Title: Vice President and General Counsel



EXHIBIT INDEX

 

 

 

Exhibit
No.

 

Description


 


99.1

 

Press Release of Enzon Pharmaceuticals, Inc. dated May 2, 2012



Exhibit 99.1

 

 

 




 

 

 

 

Investor Contact:

Andrea Rabney

 

 

Argot Partners

 

 

212.600.1902

 

 

andrea@argotpartners.com

 

 

 

 

Media Contact:

Meghan Feeks

 

 

Argot Partners

 

 

212.600.1902

 

 

meghan@argotpartners.com

Enzon Reports First Quarter 2012 Results

PISCATAWAY, N.J. – May 2, 2012 — Enzon Pharmaceuticals, Inc. (Nasdaq: ENZN) today announced its financial results for the first quarter of 2012. Enzon reported a net loss of $1.1 million, or $0.02 diluted loss per share, for the first quarter of 2012 as compared to net income of $0.4 million, or $0.01 diluted earnings per share, for the first quarter of 2011. The results from the first quarter of 2011 included receipt of a $5.0 million milestone payment from the purchaser of the specialty pharmaceutical business resulting from the approval of a supplemental Biologic License Application (sBLA) for the manufacture of SS Oncaspar®.

Summary of Financial Results

Royalty Revenue

Royalty revenue for the three months ended March 31, 2012 was $10.3 million, as compared to $11.8 million for the three months ended March 31, 2011. Royalties on PEGINTRON®, marketed by Merck & Co., Inc., continued to comprise the majority of the Company’s royalty revenue, and a reported decline in foreign sales of PEGINTRON was largely accountable for the decrease in royalty revenue.

Research and Development

The Company’s pipeline research and development expenses were $6.9 million for the three months ended March 31, 2012, as compared to $10.5 million for the three months ended March 31, 2011. The pipeline consists of the following clinical programs: PEG-SN38 and mRNA antagonists targeting Hypoxia-Inducible Factor-1a (HIF-1a), Survivin and the Androgen Receptor (AR). In addition, the Company has other novel LNA targets in various stages of preclinical research. Clinical expenses for the first quarter of 2012 declined primarily due to a $2.1 million reduction in salaries and benefits expenses as a result of the restructuring implemented during the fourth quarter of 2011. In addition, Enzon completed enrollment in both of the Company’s Phase II clinical trials of PEG-SN38, as well as Phase I clinical trials for HIF-1a and Survivin.

1


General and Administrative

General and administrative expenses decreased approximately 28% to $3.7 million for the three months ended March 31, 2012 from $5.1 million for the three months ended March 31, 2011. The decline in 2012 from 2011 was largely the result of several restructuring programs implemented over the past year, as well as the Company’s on-going cost containment efforts.

Cash and Investments

Total cash reserves, which consist of cash, cash equivalents and marketable securities, were $318.7 million as of March 31, 2012, as compared to $323.3 million as of December 31, 2011. The decrease was primarily attributable to $3.75 million of outstanding notes payable repurchased during the first quarter of 2012.

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 human clinical development and multiple novel mRNA antagonists 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

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. 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 Annual Report on Form 10-K for the year ended December 31, 2011. 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.

2


Enzon Pharmaceuticals, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive (Loss) Income
(Unaudited; In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Three months ended
March 31,

 

 

 


 

 

 

2012

 

2011

 

 

 


 


 

Revenues:

 

 

 

 

 

 

 

Royalties

 

$

10,321

 

$

11,762

 

Sale of in-process research and development

 

 

 

 

5,000

 

Contract research and development

 

 

103

 

 

1,094

 

Miscellaneous income

 

 

177

 

 

166

 

 

 



 



 

Total Revenues

 

 

10,601

 

 

18,022

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

Research and development - pipeline

 

 

6,914

 

 

10,548

 

Research and development - specialty and contracted services

 

 

85

 

 

647

 

General and administrative

 

 

3,675

 

 

5,086

 

General and administrative - contracted services

 

 

 

 

58

 

Restructuring charges

 

 

(37

)

 

359

 

 

 



 



 

Total Operating Expenses

 

 

10,637

 

 

16,698

 

 

 

 

 

 

 

 

 

 

 



 



 

Operating (Loss) Income

 

 

(36

)

 

1,324

 

 

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

 

Investment income, net

 

 

478

 

 

459

 

Interest expense

 

 

(1,417

)

 

(1,480

)

Other, net

 

 

(96

)

 

128

 

 

 



 



 

Total Other Expense

 

 

(1,035

)

 

(893

)

 

 

 

 

 

 

 

 

 

 



 



 

Loss before income tax expense

 

 

(1,071

)

 

431

 

Income tax expense

 

 

 

 

 

 

 



 



 

 

 

 

 

 

 

 

 

Net (Loss) Income

 

$

(1,071

)

$

431

 

 

 



 



 

 

 

 

 

 

 

 

 

(Loss) earnings per common share - basic and diluted

 

$

(0.02

)

$

0.01

 

 

 



 



 

 

 

 

 

 

 

 

 

Weighted-average shares - basic

 

 

48,293

 

 

58,002

 

 

 



 



 

 

 

 

 

 

 

 

 

Weighted-average shares - diluted

 

 

48,293

 

 

58,736

 

 

 



 



 

 

 

 

 

 

 

 

 

Other Comprehensive Income (Loss):

 

 

 

 

 

 

 

Available-for-sale marketable securities:

 

 

 

 

 

 

 

Unrealized holding gains (losses) arising during period

 

$

537

 

$

(125

)

Reclassification adjustment for realized losses (gains) on sales included in net (loss) income

 

 

35

 

 

(22

)

 

 



 



 

Total Other Comprehensive Income (Loss)

 

 

572

 

 

(147

)

 

 



 



 

Comprehensive (Loss) Income

 

$

(499

)

$

284

 

 

 



 



 

3


Enzon Pharmaceuticals, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited; In thousands)

 

 

 

 

 

 

 

 

 

 

March 31,
2012

 

December 31,
2011

 

 

 


 


 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

46,214

 

$

104,324

 

Marketable securities

 

 

78,480

 

 

58,188

 

Other current assets

 

 

2,456

 

 

2,749

 

 

 



 



 

Total current assets

 

 

127,150

 

 

165,261

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

15,506

 

 

16,802

 

Marketable securities

 

 

194,038

 

 

160,779

 

Other assets

 

 

252

 

 

367

 

 

 



 



 

 

 

 

 

 

 

 

 

Total Assets

 

$

336,946

 

$

343,209

 

 

 



 



 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

1,898

 

$

1,572

 

Accrued expenses and other current liabilities

 

 

11,072

 

 

13,692

 

 

 



 



 

Total current liabilities

 

 

12,970

 

 

15,264

 

Notes payable

 

 

125,749

 

 

129,499

 

Other liabilities

 

 

1,081

 

 

1,265

 

 

 



 



 

Total Liabilities

 

$

139,800

 

$

146,028

 

 

 

 

 

 

 

 

 

Total Stockholders’ Equity

 

$

197,146

 

$

197,181

 

 

 



 



 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders’ Equity

 

$

336,946

 

$

343,209

 

 

 



 



 

4