Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN)

zzlangerhans (99.23) Submitted: 9/26/2011 7:46:55 PM : Start Price: $7.44 ENZN Score: -15.32

After all the work I've done on CAPS rebutting ridiculous pump jobs from Seeking Alpha writers and Zacks, it seems only fitting to drop a green thumb on a stock that had a negative SA article and a downgrade to sell from Zacks in the last 24 hours. Don't get me wrong, I'm not recommending a real investment in Enzon. But with 359M in cash and 135M in debt against a market cap of 360M, one could do a lot worse in terms of the balance sheet. Gradually eroding sales of PEG-Intron, the royalties of which comprise the bulk of Enzon's revenue, have proven to be a heavy drag on the share price over the last few months. But a recent 50% cut in the workforce should reduce the 6-9M quarterly burn and a phase II trial of Pegylated irinotecan PEG-SN38 in metastatic breast ca is nearing full enrollment. The development of mRNA antagonists has been mired in phase I for years and it is questionable whether it even continues at all. The final element is heavy investment by Carl Icahn and an ongoing share buyback program, which does not seem consistent with a company attempting to reduce its size and conserve cash. This is more of a wild card, since I can't predict how this might affect the share price.

In short, this is definitely not a stock to fall in love with. But the balance sheet looks good right now and there is a potentially significant catalyst in the not-so-distant future. And if Seeking Alpha and Zacks pumps often signify that a stock is topping, one can only theorize the opposite in the rare situation where both weigh in negative.

Hotpicks101 (32.82) Submitted: 1/21/2011 6:11:35 PM : Start Price: $11.57 ENZN Score: -40.29

Klarman. Cheap.

jsgant13 (96.14) Submitted: 9/13/2010 1:01:00 PM : Start Price: $10.95 ENZN Score: -51.57

baupost, deej and value

TMFDeej (99.22) Submitted: 6/21/2010 3:33:33 PM : Start Price: $11.01 ENZN Score: -52.66

As I have said numerous times in the past, biotech definitely is not my area of expertise. Having said that, the complexity of biotechs and their propensity to wind themselves down more often that companies in other sectors seems to often lead to interesting investment opportunities in the sector.

I added Enzon Pharma (ENZN) to my CAPS portfolio at $11.01/share. The company currently has a whopping $6.50/share in cash.

It also is receiving royalty payments from Merck for its Hep C drug Pegintron. One can debate the current value of that cash flow, but I have seen estimates out there of around $3.50/share.

ENZN is also receiving royalty payments from UCB Pharma for its arthritis drug Cimzia. Again, I have seen a current value of around $1.50/share estimated for this asset.

These three things alone are equal to $11.50/share, slightly above ENZN's current share price. Everything else that the company has is essentially being given away for free, including a number of drugs that are in testing. As an added bonus the Board of Directors has new members who seem intent on increasing the value of the stock and the company announced a share buyback.

I am not comfortable enough to purchase many, if any biotechs in real life. Cash cushions are fantastic, but companies in this sector tend to burn cash...often at a rapid pace. This company is cheap enough that I am adding it to my CAPS portfolio.

Deej

NoIcons (50.98) Submitted: 2/28/2010 6:33:42 PM : Start Price: $9.39 ENZN Score: -41.37

outperform

TMFBreakerJava (99.38) Submitted: 11/19/2009 12:34:32 AM : Start Price: $10.80 ENZN Score: -52.59

This biotech has a reliable royalty revenue stream from its proprietary pegylation technology which makes drugs less toxic, and more effective. It has a solid balance sheet and some interesting compounds in the pipeline. It has just sold off a portfolio of drugs to fix the balance sheet. Undervalued due to years of questionable decisions by management, the new CEO has now put the house in order, which promises appreciation to fair value and more gains if one of the drugs in the pipeline pans out.

healthcare1 (< 20) Submitted: 1/17/2009 5:04:27 AM : Start Price: $6.23 ENZN Score: -42.52

it has a unique drug delivery system and activist shareholders

mjan706 (55.03) Submitted: 9/22/2008 1:44:10 AM : Start Price: $7.89 ENZN Score: -15.93

An Icahn portfolio stock.

hennessy7 (< 20) Submitted: 5/26/2008 9:12:50 AM : Start Price: $8.85 ENZN Score: -16.69

I like the sector. This is a sector pick as I have done little DD on this stock. I think small biotech has been hit hard, and the cancer market, in particular, is going to turn around. Plus, I do not see too many incredible investments in other sectors so I am sticking to high risk/ high reward opportunities.

WonderWolf (50.55) Submitted: 5/20/2008 11:48:35 PM : Start Price: $8.88 ENZN Score: -14.10

Working on 2 cancer drugs and will be the big winner!!

Addgirl48 (58.65) Submitted: 3/29/2008 11:21:19 AM : Start Price: $9.28 ENZN Score: -25.67

People all ways needing pills so Pharmaceuticals all ways geting business and all ways will

djinsanity (< 20) Submitted: 2/9/2008 12:17:36 PM : Start Price: $8.14 ENZN Score: -13.38

PEG-SN38 showed anti-tumor activity in resistant pre-clinical models, FDA approval for DepoCyt, leader in stem cell research, I can see it doing phenomenal

henncoop (98.11) Submitted: 3/7/2007 11:04:59 AM : Start Price: $8.25 ENZN Score: -11.53

low PE &amp; a good choice for a play in this sector

pbqstraining (< 20) Submitted: 1/12/2007 10:52:34 PM : Start Price: $8.56 ENZN Score: -12.36

NICE PIPELINE

j3nzsrfs (< 20) Submitted: 11/25/2006 10:29:17 PM : Start Price: $8.35 ENZN Score: -12.20

New cancer treatment