Enzon 1Q Profit Plunges on Loss of Revenue
From Associated Press (May 6, 2011)
BRIDGEWATER, N.J. -- Enzon Pharmaceuticals Inc. said Friday that its first-quarter profit plunged on a loss of revenue following the sale of the company's specialty pharmacy business.
The company earned $431,000, or 1 cent per share, down from net income of $199.8 million, or $2.70 per share, during the same period a year earlier.
Last year's first quarter included a one-time boost from the sale of Enzon's sale of its specialty pharmaceuticals unit, along with the revenue from that unit.
Revenue fell 69 percent to $18 million.
Excluding one-time items, the company said it lost 7 cents per share in the first quarter. Analysts polled by FactSet expected a loss of a penny per share on $14.8 million in revenue.
In 2010, the company sold most of its business to Italian drug maker Sigma-Tau Group. The products sold include the cancer drug Oncaspar, fungal infection treatment Abelcet, meningitis drug DepoCyt, and Adagen, which is used for severe combined immunodeficiency disease, or "Bubble Boy Disease."
Enzon shifted its focus to experimental cancer drugs and technologies. The majority of its revenue comes from royalties on hepatitis drug Pegintron, which is sold by Merck & Co.
Posted: May 2011