Enzon to distribute royalty cash through dividends

Enzon Pharmaceuticals Inc. (NASDAQ:ENZN) said it will distribute the company's excess cash from ongoing royalty revenues to shareholders through periodic dividends, including a special dividend of $1.60 per share to be paid on June 4 to shareholders on record as of May 7. The move came after the biotech concluded a review exploring the possible sale of the company or its assets. Enzon retained Lazard in December for the review.

Enzon has no ongoing clinical development but receives royalties on seven products, including anemia drug Omontys peginesatide from Affymax Inc. (NASDAQ:AFFY) and partner Takeda Pharmaceutical Co. Ltd. (Tokyo:4502). In February, Affymax and Takeda recalled Omontys after receiving postmarketing reports of serious hypersensitivity reactions that can be life-threatening or fatal. Enzon said the recall of Omontys and the declining revenues of HCV drug PegIntron peginterferon alfa-2b from Merck & Co. Inc. (NYSE:MRK) "adversely impacted interest in a possible acquisition of the company's royalty portfolio." ...