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UPDATE: Enzon Reported Concluded Review of Possible Sale of Assets, Authorizes $1.60/Share Special Dividend, Periodic Royalty Dividends


Enzon Pharmaceuticals, Inc. (NASDAQ: ENZN) today announced that it has concluded a thorough review of the possible sale or disposition of one or more corporate assets, or a sale of the Company, and that its Board of Directors has approved a $1.60 special dividend per share and intends to distribute excess cash, expected to arise from ongoing royalty revenues, in the form of periodic dividends to shareholders. The record date of the special dividend will be May 7, 2013, and the payment date will be June 4, 2013. Furthermore, the Company has minimized expenses and will look to maximize the return of royalty revenues to shareholders going forward. Enzon receives royalty revenues on seven marketed products, namely PegIntron(R), Sylatron(R), Macugen(R), CIMZIA(R), OMONTYS(R), Oncaspar and Adagen. For the full year 2012, royalty revenues were $41.5 million. Royalties on PEGINTRON, marketed by Merck & Co., Inc., comprise the majority of the Company's royalty revenue. Royalty revenue on OMONTYS (peginesatide) injection, marketed by Affymax, Inc. and Takeda Pharmaceutical Company Ltd., were subject to a nationwide voluntary recall of all lots to the user level as a result of new postmarketing reports regarding serious hypersensitivity reactions, including anaphylaxis, which can be life-threatening or fatal. As of March 31, 2013, the Company had cash, cash equivalents and marketable securities totaling $199.3 million and approximately $116 million in outstanding 4% convertible notes, which mature on June 1, 2013. The special dividend announced today would result in an aggregate distribution to shareholders of approximately $70 million.


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