Enzon Pharmaceuticals to lay off nearly half of its employees Print E-mail
By M.E.Garza   
Thursday, 22 September 2011 18:45
Biotechnology company Enzon Pharmaceuticals Inc. said Thursday 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 in a release. Enzon said the layoffs are intended to align resources with the company's research and development activities.

Enzon, based in Piscataway, N.J., has started notifying employees of the layoffs.

The layoffs are expected to reduce annualized operating expenses by $6 million once fully implemented in June 2012, the company said. Enzon expects to incur a charge of about $3 million in the third quarter of this year related to the reduction.

According to Bloomberg, Enzon agreed last November to sell its Sigma-Tau Pharmaceuticals unit under pressure from investor Carl Icahn, The company also announced in February that Jeffrey Buchalter had resigned as chief executive officer. Alex Denner, senior managing director at Icahn Enterprises LP, is the company’s board chairman and Richard Mulligan, an Icahn associate and a genetics professor at Harvard Medical School, also serves on Enzon’s board.

Icahn’s firms owned about 12 percent of Enzon or 6.9 million shares, as of June 30, according to data compiled by Bloomberg.

Shares of Enzon closed down 20 cents, or almost 3 percent, at $7.50.

Also on Thursday. investors began giving in to fears that a global recession is already under way, and stock markets shuddered around the world. Selling started in Asia, picked up speed in Europe and sent Wall Street near its worst finish of the year.The Dow Jones industrial average lost 391 points and at one point was down more than 500, a return to the volatility that gripped the market this summer. One financial indicator after another showed that investors are losing hope that the global economy can keep growing. The price of oil and metals such as copper, which depend on economic demand, fell sharply. Traders bought Treasury bonds and the dollar for safety.

Here is a look at the movers in Healthcare:

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