4- considering they only need to hand out 50 mil, and management has said they will be handing cash out, I think it's pretty conservative. Management has not lied to investors, though I agree it doesn't seem like they've acted in our best interest.
5- competition in the US will be terrible, but worldwide not so much. patents expire in US in 2015, but later worldwide.
1-- you didn't take into account the 1.60 divi being paid out soon.
2- US decline accounts for most of this.
3- true. Need more details
1. There are 43 million shares out. If they earned 50 million dollars that would give you a price per share value of $1.16. You would not even break even, much less make any money. Plus, there is no guarantee of how much of that would make it back to the stockholders. I would not trust this company after the Belrose deal.
2. The sales figures from Merck are worldwide - down 23%. Total sales is what matters. Merck is the only company that can sell PegIntron.
3. I really have doubts about Belrose deal. It does not pass the smell test. Enzon had invested over 100 million dollars in that technology and sold it for less than a million. They already had some of it licensed and sold those rights to Belrose for 2 cents a share. Why allow another company to get in the middle of that deal if they expected to make money?
4. I do not think it is a conservative investment at all when Merck is putting out those kind of declining sales figures. You have to hope one of those other products may or may not hit at some point in the future. But that is not conservative investing, that is speculation.
5. I would expect there will be generic PegItron available in the next few years if there is still a market for it.
It wasn't a great 10k, but not as bad as you make it out to be. First of all, Enzon only has to profit another 50 million to justify the current market cap. Unless pegintron is banned, 50 mill in profit should be no problem over the course of the next 5 years (when royalty payments will cease altogether). Also, the US market only accounts for a small percentage of overall royalty revenue. The patents may expire, but the royalties don't cease until 2018 (2015 in US, but longer elsewhere). On top of this, we don't know what the deal is with Belrose-- maybe more royalty revenues there from Hisun or elsewhere. Who knows. All in all this is a pretty conservative play with some potential for making money. With the PPS so low, it's not a sell, possibly a buy, definatly a hold.
Enzons 10k is out. They earned 5 cents for the quarter. The bad news is that they have announced what some of us have suspected. They have ceased all operations other than collecting the royalties on their old products. The entire company now consists of 10 people. They have vacated their offices and manufacturing facility. It is officially a dead company.
The really bad news concerns those royalties. They collect roughly 95% of their royalties on one product. PegIntron. Merck has the exclusive worldwide rights to manufacture and distribute PegIntron. Sales are rapidly declining.
The following is from Mercks 1st quarter 2013 earning statement, page 35 -
"Worldwide sales of PegIntron, a treatment for chronic hepatitis C, declined 23% to $126 million in the first quarter of 2013 driven largely by lower sales in the United States and Japan. The Company believes that the sales decline in the United States was attributable in part to patient treatment being delayed by health care providers in anticipation of new therapeutic options becoming available"
It appears a replacement for PegIntron will be available very soon.
In any event, Enzons patents on PegIntron expire this year and 2015 anyway.
Sorry to be the bearer of bad news, but the facts are what they are.
fire away frank, don't hesitate to use my phraseology if it suits you, change it to your own liking, etc., and yes I agree the media has many more resources then we do for finding things out, if we can get them to be motivated to dig and report all the better for us, the more facts the better.
Good job Billy. I am thinking of making a list of the emails of the journalists with WSJ, Forbes and Fortune. Forbes recently did an article on Carl Icahn. Do you think that providing facts to them and let them do the digging(like finding out who is behind Belrose) is a better way? Hopefully the name Carl Icahn would get their attention and get them motivated (curiosity,and incentives like headlines and promotion).
This has already been sent to a major media player. I don't want to tip the crooks on where to point their defenses. If I don't get a responce in 24-48 hrs I will shoot a similiar verion to another. As to the others you've mentioned, if this gets a serious look at they and thier roles, will be scrutinized. I have some contact efforts underway, I don't want to disclose the details of that effort but some of the poeple you've mentioned are on that list.
At this point I would encourage others to raise the noise level, contact national and local media, class action law firms (e.g. Milbery LLP, top of the heap I'm told), the state of Delaware legislators, local congressional representatives, etc., all the efforts will add up to a news story if enough noise is created and interest generated. We need to get some one who will ask, what the hell is this all about, enough eyeballs will click or watch if I (my outlet) finds out. Make some small effort now!
Nice job one1badbilly. Who will you send this to?
What I still have problems with is how they managed to sell IP at this ridiculous price when there are some
major players like Michael price,Jean Simmons,Charles Brandes holding Millions of shares,not to mention Blackrock and the original insiders like Del Campo .
What your take on tthat???
May 9, 2013
New York NY
Dear Mr. XXXXXXXX
You may have had your fill of Wall Street corruption and fraud stories but let me tell you there is yet another unbelievably brazen story of Wall Street moguls and hedge funds’ fraud and greed in the works. The story involves some of the biggest names on the street such as Carl Icahn, Seth Klarman, Blackrock, and others. A company named Enzon Pharmaceuticals (ENZN) which was just a few years ago a rising star in the pharmaceutical industry (see attached) is now today in the throes of being dismembered by the mighty of Wall Street. In the process not only are small and middle sized shareholders being swindled in broad daylight, as the company’s IP worth easily over $100m+ is being stripped and sold off to a two month old holding company for $800,000. But evidence strongly suggests that the company’s extensive IP patent holdings and XXXXXXXXXXXXXXXXXXX are headed for Hisun Pharmaceuticals ownership in the near future.
This story is one of a brazen broad daylight IP swindle once reserved for companies sunken to the OTC market, now taking place on the NASDAQ, and a story of US innovation and patents being stolen by America’s mighty and sold off to China in a period when China’s patent filings are surpassing the US. A story of titanic, unquenchable, greed and signals an end of American investment in its own prosperity and a harbinger of things to come, if nothing is done.
I am a small investor in Enzon with a modest amount of money involved, but have been witnessing and digging at this story as much out of amazement as economic interest. I am hold a XXXXXX, was formerly a vice president at XXXXXXX, and am now a XXXXXXXXX. If you google XXXXXXXXX, all the necessary who I am info will come up.
If you would like to lean more please contact me by return email or at XXXXXXXX.
I appreciate your efforts and great work and hope to hear back, best regards,
earnings release tomorrow, according to googlefinance... maybe something there. At least an update on the pace of royalty revenue
Icahn and his band of men ,have an obligation to keep us informed about the decisions they are making and we should be able to vote .!!!!
I believe the catch here is Record date. Even though the ex date is after the pay date you must be a holder by May 7th and not sell before the ex-date. My understanding is that the div now belongs to the buyer of your stock. The mechanics of that, go figure. How the due bill works ?????.
If I buy a stock on the record date, do I get the dividend?
A: With normal dividends, no. In cases of a deferred ex-dividend
date, yes, as long as you continue to hold the stock until at
least the deferred ex-dividend date.
I'm with you guys!!!
Enzon's has spent $10's of M to get to phase II before they decided they didn't have the money to continue to phase III and they were seeking a partner,
Well they got that partner in Hisun who is direct partners with Phizer and now Icahn who has been in that deal all a long is now willing to sell Enzon's rights to Peg -38 which has gone through and gotten Fda approval for a mere 700K
GIVE ME A BREAK!!!!!!
hey with you there frank on that one. I'll help out with the marketing, let's call the other eleven peg developers and see if we can swing a deal for $10m, they'd probably pay that just to keep Hisun out of their hair!
we need them to develop the technology-- to pour money into it without risk to us but with royalty benefits. What if Enzon continued pouring money into this tech and nothing came of it. We'd be screwed. My hope is that Belrose was set up by Ichan, he took on all the risk of seeing what he can make of this tech, and enzon took on no risk and some benefit in receiving royalties. Maybe this is an arrangement other big holders signed off on. There are few details and no press releases here-- we don't know what the deal is. Before this deal, many people here were claiming that the big holders were intentionally trying to drop the pps, to buy more. Maybe that's still going on.