Enzon Sigma-Tau Agreement (NASDAQ:ENZN)

Enzon Pharmaceuticals, Inc (NASDAQ:ENZN) has announced that they have entered into a definitive agreement to sell their specialty pharmaceutical business to Sigma-Tau Group for US$300 million along with milestone payments of US$27 million. Additionally, Enzon Pharmaceuticals will also receive royalty payment of 5 to 10 percent on incremental net sales above a 2009 baseline amount from Enzon’s four marketed specialty pharmaceutical products through 2014. Enzon’s four marketed specialty pharmaceutical products include Oncaspar, Adagen, DepoCyt and Abelcet. Sigma-Tau Pharmaceuticals will also go ahead and purchase the manufacturing facility of Enzon in Indianapolis and will distribute the products in the US from this facility.

Enzon Pharmaceuticals will file with the Securities and Exchange Commission a current report on Form 8-K which will also include the purchase agreement. Sigma-Tau Group is a global research and development pharmaceutical company that looks after the development and commercialization of medicines for rare diseases. This agreement will help Sigma-Tau to expand their current presence in the United States and also come out with new therapeutics which will help them expand their product portfolio. After the sale of these assets, Enzon Pharmaceuticals’ business will consists of its royalties which is Peg SN38 and other PEG and LNA technology platforms. Sigma-Tau Group has said that they will continue Enzon’s excellent work, especially in the field of rare diseases which is particularly stimulating one.