Enzon spins off biotech ops into $150M enterprise

Wed, 07 May 2008 06:59:57 -0400

Enzon Pharmaceuticals has decided to spin off its biotech operations into a new company, adopting a suggestion floated by none other than Carl Icahn. Icahn has been making quite a name for himself as a mover and shaker-upper in the biotech industry. Unlike Biogen Idec, which is now barricading the doors against Icahn's campaign to push a sale, Enzon appears to have quickly changed game plans under pressure from Icahn--separating its business into specialty pharma and biotechnology.

Icahn reported a 6.9 percent stake in the company last March, according to the Wall Street Journal, and swiftly suggested either a spin-off or sale of the company.

"The separation will enable the two businesses to compete more effectively in their respective markets and optimize their business goals, research initiatives and capital requirements," says Chief Executive Jeffrey H. Buchalter. Enzon CFO Craig Tooman will become president and CEO of the new company, which will start off with $150 million in the bank to fund R&D efforts. That's enough to fund operations for two to three years.

- see Enzon's release
- check out the article in the Wall Street Journal