Enzon Takes Bigger 2Q Loss as Pegintron Sales Slip
From Associated Press (August 4, 2011)
PISCATAWAY, N.J. -- Enzon Pharmaceuticals Inc. posted a larger second-quarter loss Thursday as revenue from its hepatitis C drug Pegintron declined.
Enzon said it lost $7.1 million, or 13 cents per share. A year ago it took a loss of $5.6 million, or 9 cents per share. Its revenue, which mostly comes from sales of Pegintron, dropped 30 percent, to $9.6 million from $13.7 million.
Analysts expected the company to report a break-even quarter on $15.5 million in revenue, according to FactSet. Shares of Enzon shed 78 cents, or 8 percent, to close at $8.58.
Pegintron is marketed by Merck & Co. Enzon receives royalty payments on sales made by Merck, and the company said those royalties decreased to $9.2 million from $10.6 million in the second quarter of 2010. Contract research and development payments slid to $231,000 from $2.6 million.
In the first quarter of 2010, Enzon sold most of its business to Sigma-Tau Group of Italy. In the deal, Sigma-Tau received products including 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 said it planned to focus on developing experimental cancer drugs and technologies.
Posted: August 2011