Enzon investor DellaCamera questions planned spinoff of biotech business

By Lisa Kerner

Charlotte, N.C., Nov. 26 - Enzon Pharmaceuticals, Inc. investors led by DellaCamera Capital Master Fund, Ltd. said they are opposed to management's current plan to spin off Enzon's biotech business.

In a Nov. 25 letter to Enzon's board of directors, DellaCamera suggested the company partner "any one of its numerous clinical or pre-clinical compounds so that the company can benefit from third-party validation of its technology."

The letter was included in a schedule 13D/A filed with the Securities and Exchange Commission.

DellaCamera, a 7.6% shareholder, also questioned Enzon's allocation of $150 million in cash and securities to the Evivrus, Inc. spinoff entity, given current market conditions. Instead, DellaCamera would like Enzon to use the cash to repurchase common stock and convertible bonds.

According to the filing, DellaCamera is exploring alternatives for its investment in Enzon with the assistance of Moelis & Co. LLC.

DellaCamera asked the board to consider the ramifications to shareholders if Enzon adjusts the conversion rate of its 4% convertible senior notes due 2013 in connection with any spinoff.

Enzon is a Bridgewater, N.J.-based biopharmaceutical company.

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