Enzon Pharmaceuticals (ENZN): A bio-tech company, which has fallen from a high of $10 per share, to a current share-price of $5 per share. There are two activist investors in the company: Carl Icahn and DellaCamera Capital, both of who are pushing the company to sell parts of Enzon. In fact, in a recent letter to management, DellaCamera said “At the Company’s recent stock price of $6.42 per share, Enzon’s equity market capitalization is approximately $290 million. As you may recall, we have previously calculated Enzon’s remaining 75% stake in its PEG-Intron royalty stream to be worth $300 million alone! In addition, the Company had over $190 million of cash and marketable securities as of June 30, 2008 which Enzon could easily tap to implement a share repurchase program, particularly in light of the Company’s undervaluation. Indeed, every share that is bought at a discount to intrinsic value makes every remaining share worth more; at current prices, Enzon could repurchase more than half of its outstanding shares with just this existing cash!”—Since writing this letter in October 6th, shares of Enzon have fallen an additional 25% An additional positive going forward is that Enzon’s Oncaspar-IV cancer druge has received orphan drug status in the EU. Enzon said “Oncaspar-IV is a treatment for acute lymphoblastic leukemia, the most common type of cancer in children. The Commission of the European Communities awarded the drug orphan medicinal product status, which will block rival versions of the drug from the market for 10 years if regulators approve Oncaspar-IV for sale. Oncaspar is designed to kill cancer cells by starving them of an essential amino acid”—while this is not a game changer, there have been rumors that the company might sell this off to a larger European based drug marker. Important takeaway: 1) shares of Enzon are extremely beaten down; despite any real change in Enzon’s business, sales and revenue 2) Activist investors who have large financial stakes in Enzon are pushing the company to break themselves up

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