Enzon splits up into pharma and biotech stand-alones, under pressure from Icahn

In what appears to be a move made under pressure from a significant shareholder, US biopharmaceutical group Enzon Pharmaceuticals has  announced that it plans to spin-off its novel biotechnology business  from the rest of the firm in a transaction that will result in two  independent and highly-focused public companies.

In March, billionaire investor Carl Icahn acquired a stake of nearly 7%  in Enzon, believing that the company's shares were undervalued. At the  time, he reportedly suggested that the firm spins out its biotechnology  business or sells it altogether.

Also, at the start of this month, DellaCamera Capital Management, which  controls around 5.8% of Enzon's stock, called for the resignation of  board members who had approved chairman and chief executive Jeffrey  Buchalter's "runaway" compensation package. The CEO received around  $10.2 million in 2007, according to The Associated Press' calculations.