Last May, Enzon said the timing was right to spin off its biotech business into a new company. Yesterday, it said that the financial turmoil roiling world markets had made that spinoff plan a non-starter.
"While we continue to believe that the spin-off of the biotechnology business would be a strategic and value-enhancing plan, the current external market conditions have influenced our decision at this time," said Jeffrey H. Buchalter, chairman and chief executive officer of Enzon. "The fundamentals of the business remain strong and we will continue to develop our innovative compounds for cancer patients."
The spinoff plan drew fire from a big Enzon investor, DellaCamera, just last week. The investor urged Enzon to buy back shares rather than fund a spin-off. Last May the investment group was urging Enzon to take a close look at all its alternatives, including a possible sale of the company.
- read the Enzon release