Investor urges Enzon to consider sale of entire company

A shareholder of Enzon Pharmaceuticals Inc. has urged the drug maker to explore its strategic alternatives, including a sale of the entire company, according to a Securities and Exchange Commission filing on Tuesday.

DellaCamera Capital Management LLC holds about 2.7 million Enzon shares, representing a 5.9 percent stake in the Bridgewater, N.J.-based company.

In a letter to the board dated Tuesday, Portfolio Manager Richard P. Mansouri said DellaCamera was "initially encouraged" by Enzon's decision earlier this month to spin off its biotechnology business.

But DellaCamera said the company must now take the next step and explore strategic alternatives for its remaining commercial operations, including the sale of the operations as a whole. Mansouri said "the significant cash-generating ability of the commercial operations makes them highly financeable and the synergies that a strategic buyer could bring to the mix are significant." DellaCamera said the company could potentially eliminate at least $25 million of excess expenses.

The investor demanded that the board present any bids for the entire company to shareholders for evaluation.

Mansouri also criticized Enzon for not pursuing partnering transactions for any of its compounds, arguing that shareholders should not assume the whole risk of product development.

An Enzon representative was not immediately available to comment on the letter.

Previously, DellaCamera agreed to withdraw its nomination of three candidates to Enzon's board after the company said it would add a new independent director.

Activist investor Carl Icahn has also pushed for the company to consider a spinoff or sale of the company.

Enzon shares jumped 22 cents, or 2.5 percent, to $8.97 in afternoon trading. The stock has traded between $6.31 and $10.36 during the past 52 weeks.