Biotechnology Pioneer Enzon Pharmaceuticals Cuts It Workforce in Half

Piscataway, NJ-based Enzon Pharmaceuticals, the once venerable biotechnology that was the first to successfully commercialize protein PEGylation, yesterday announced that it plans to lay off nearly half its employees by the second quarter of next year.

The layoffs will leave Enzon with 47 employees. The company said that the layoffs are intended to align resources with the company's research and development activities. Enzon, once with a market valuation greater than Merck pharmaceuticals, has been steadily losing revenue over the past 10 years and had essentially abandoned R&D in the protein PEGylation field that it had pioneered. Over the same time period, the company had a succession of CEOs, each of whom had a different vision and strategic plan forward.

Enzon was founded in 1982 by Abe Abuchowski, PhD, who validated the commercial possibilities for protein PEGylation while a graduate student at Rutgers University. Abuchowski licensed the rights to protein PEGylation and formed Enzon several years after receiving his PhD degree. He took the company public in 1985 (a feat that was not easy to accomplish back in those days) and went on to use protein PEGylation to develop two products with orphan drug designations (Adagen and Oncospar) and PEG-Intron a second generation biopharmaceutical used to treat Hepatitis C infections.

Abuchowski was CEO and Chairmen of Enzon until 1996. He left the company that he created because its board decided that PEGylated small molecules rather than proteins ought to be the future focus of the company. Enzon abandoned its biopharmaceutical focus in favor of small molecules in the late 1990s. Although in recent years the company tried to resuscitate its protein PEGylation programs, the PEGylation industry had essentially passed the company by and they were no longer competitive.

Abuchowski is currently CEO and Chairman of Prolong Pharmaceuticals, a South Plainfield, NJ-based, company developing products targeting the treatment of anemia resulting from oxygen deficiency. Not surprisingly, many of the products in the company’s pipeline were developed using protein PEGylation technology. While others have contributed to the protein PEGylation field, Abuchowski is generally recognized as the first person to commercialize the technology. He has received numerous awards for his work in protein PEGylation; a technology that generates roughly $30 billion in drug sales annually.

Until next time...

Good Luck and Good Job Hunting!!!!!!!

 

Enzon Pharmaceuticals For Sale?

I have been following the trials and tribulations of New Jersey-based Enzon Pharmaceuticals for the past decade. My interest in Enzon was kindled because of a friendship with Abe Abuchowski, Enzon’s former Chairman, CEO and Founder.  For those of you who may not know, Abe is sometimes called the “father of protein PEGylation” because he was first to harness the commercial power of the technology (he played a pivotal role in creating the technology as a graduate student in Frank Davis’ lab at Rutgers University).

Abe left Enzon in the early 1990s (after shepherding the US regulatory approval for Adagen®, Oncospar®, and PEG-Intron®) and in 2004, he (along with my help) founded Prolong Pharmaceuticals, a biopharmaceutical company that specializes in PEGylation of biogenerics. Prolong is also using protein PEGylation to create new antimicrobial and blood replacement products.

Over the years, Enzon has had its share of “ups” and “downs.” Although profitable through much of the 1990s, Enzon is now a company riddled with huge debt– mostly because of bad decisions made company executives in the post-Abuchowski era.  Since 2004, Enzon’s Chairman and CEO, Jeffrey Buchalter, has worked diligently to “right” the company. He realigned and focused the company’s strategic objectives and, through some creative financing, reduced some of Enzon/s more onerous debt obligations. To that end, he was able to restore shareholder confidence and stabilize Enzon’s stock price. Unfortunately, Jeff’s efforts may not be enough to save the company from acquisition or merger.

Many industry insiders believe that Buchalter was hired four years ago to prepare the company for sale. Yesterday, Enzon disclosed in a SEC filing, that the self-proclaimed biotech maven, Carl C. Icahn, increased his Enzon stock position from 1,760,001 to 3,072,103 shares. After the purchase, Icahn owns about 6.93% of the company’s outstanding shares and is one of its largest, single shareholders. Not surprisingly, Icahn now wants the company to consider putting itself up for sale. Maybe the insiders were correct in their thinking?

Stay tuned for more details.

Until next time….

Good Luck and Good Job Hunting (forget New Jersey)!!!!!!!