Enzon Pharmaceuticals, Inc. announced plans to spin off its biotechnology business into an independent company focusing on the development of cancer treatments. Enzon will fund the new company with $150 million, which is expected to provide two to three years of R&D activity. The transaction, which is subject to approval from Enzon’s board of directors, is expected to close in the fourth quarter.
   
Jeffrey H. Buchalter, Enzon’s chief executive officer, will head the new company and Enzon’s current chief financial officer, Craig Tooman will be responsible for the specialty pharmaceuticals business. Each company will have separate management teams.
   
“By separating these unique businesses into two focused companies, the opportunities for both the specialty pharmaceutical business and the biotechnology business could be substantially enhanced and greater value could be created than under the current structure,” said Mr. Buchalter.
   
Enzon will also retain rights to its currently marketed drugs, which include Oncaspar for leukemia, Depocyt for meningitis, Abelcet for fungal infections and Adagen for severe combined immunodeficiency disease. In addition, it will retain rights to its royalty revenues.
   
The company also recently reported 1Q08 results. Revenues were $48.8 million (+18%). Earnings were $1.5 million compared to a loss of $2.8 million in 1Q07.