Icahn Files 13D on Enzon Pharma

• Posted by ToddSullivan
• on March 14th, 2008

Carl Icahn filed a 13D regarding his stake in Enzon Pharmaceuticals (ENZN) today.

Icahn now may be deemed to beneficially own, in the aggregate, 3,072,103 Shares, representing approximately 6.93% of Enzon’s outstanding Shares (based upon the 44,322,923 Shares

Also,

“The Reporting Persons have entered into a number of derivative agreements, commonly known as Total Return Swaps, with counterparties, which agreements provide that the profit to the Reporting Persons shall be based upon the increase in value of the Shares and the loss to the Reporting Persons shall be based upon the decrease in the value of the Shares, during the period from inception of the applicable agreement to its termination. The agreements provide that they settle in cash. In addition to the Shares which they beneficially own as shown in Item 5 above, the Reporting Persons currently have long economic exposure to an aggregate of 3,552,897 Shares through such agreements.”

Enzon:
Enzon Pharmaceuticals, Inc. (Enzon) is a biopharmaceutical company focused on the development, manufacturing and commercialization of medicines for patients with cancer and other life-threatening conditions. The Company has a portfolio of four marketed products: Oncaspar, DepoCyt, Abelcet and Adagen. Enzon’s drug development programs utilize several approaches, including its PEGylation technology platform. The PEGylation technology was used to develop two of Enzon’s products, Oncaspar and Adagen, and has created a royalty revenue stream from licensing partnerships for other products developed using the technology. The Company is also engaged in contract manufacturing for several pharmaceutical companies.

Why the interest?
“The Reporting Persons acquired their positions in the Shares in the belief that they were undervalued. The Reporting Persons have had conversations with members of the Issuer’s management during which the Reporting Persons expressed their concern with the current Share price. In addition, during these conversations, the Reporting Persons indicated that management should conduct a comprehensive review of strategic transactions that could enhance shareholder value, including a spinoff or other monetization of certain assets, such as royalty streams and products with limited market potential; or a sale of the entire company. No agreement, arrangement or understanding was reached between the Reporting Persons and management. The Reporting Persons intend to seek to have further conversations with management.”

Disclosure (“none” means no position):None

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