Italy's Sigma-Tau to takeover Enzon business for some $327 million in cash plus royalties

New Jersey, USA-based Enzon Pharmaceuticals says that it has entered into a definitive agreement to sell its specialty pharmaceutical business to the Italian, privately-owned Sigma-Tau Group for $300 million plus an additional amount of up to $27 million based on success milestones. Enzon will also receive royalties of 5%-10% on incremental net sales above a 2009 baseline amount from the US firm's four marketed specialty pharmaceutical products through 2014.

Enzon first revealed that it is exploring strategic alternatives for its specialty drugs business more than a year ago (The Pharma Letter August 18), under what appeared to be pressure from a significant shareholder, billionaire investor Carl Icahn.

Enzon's specialty pharmaceutical business includes four marketed products:
Oncaspar , (Pegaspargase), for acute lymphoblastic leukemia (ALL); Adagen (pegademase bovine) Injection, which is used to treat patients afflicted with a type of Severe Combined Immunodeficiency Disease; meningitis drug DepoCyt (cytarabine liposome injection) and Abelcet (amphotericin B), for the treatment of invasive fungal infections, as well as the manufacturing facility in Indianapolis, Indiana, that will be purchased by a US subsidiary of Sigma-Tau Pharmaceuticals, which will distribute the products in the US market.

After the sale of these assets, Enzon's businesses will consist of its royalties, Peg SN38 and our LNA and PEG technology platforms. 'Enzon's board of directors is evaluating options to return most of the value of this sale to shareholders' stated its chairman, Alex Denner, adding: 'We will refocus the company on our royalty business, pipeline, and technology platforms.'

Sigma-Tau is an R&D driven firm, specializing in the development and commercialization of medicines for rare diseases. This acquisition will expand its current presence in the USA and in new therapeutic areas.

In morning trading on November 9, Enzon shares rose 4.7%, to $9.41, having reached an annual high of $9.60 on the news, its highest price since December 2007.