Enzon Pharmaceuticals Reports Modest Revenue Growth, Operating Loss in Q3 2024

Enzon Pharmaceuticals, Inc. reported its financial results for the nine months ending September 30, 2024, highlighting a modest revenue generation of $26,000, a significant increase from no revenues reported in the same period of 2023. The company’s total operating expenses for the third quarter of 2024 were $351.2 million, a stark rise from $1.03 million in the prior year, leading to an operating loss of $351,000 compared to a loss of $225,000 in Q3 2023. Net income for the third quarter of 2024 was $254,000, down from $321,000 in the same quarter of 2023. The net loss available to common stockholders increased to $(277,000) from $(210,000) year-over-year.

For the nine-month period, Enzon reported a net income of $850,000, an increase from $701,000 in 2023. The company also experienced a decrease in cash and cash equivalents, ending the period with $46.6 million, down from $47.0 million at the end of 2023. The net cash provided by operating activities rose slightly to $896,850 from $850,000 in the previous year.

The company’s total current assets decreased to $46.97 million from $47.34 million, while total current liabilities saw a significant reduction to $438,000 from $1.71 million. Total stockholders’ equity also declined to $2.76 million from $3.51 million. The Series C preferred stock's liquidation value increased to $1,089 per share, contributing to total mezzanine equity of $44.08 million, up from $42.48 million at the end of 2023.

Enzon's operational strategy continues to focus on leveraging its net operating loss carryforwards (NOLs) for potential acquisitions, with over $100 million in federal NOLs available. The company has shifted its operational model, outsourcing corporate functions and reallocating employment responsibilities, which has increased reliance on third-party services. The marketing agreement with Micromet AG for the drug Vicineum remains in place, although development has stalled, limiting potential royalty revenues.

The company declared a cash dividend of approximately $1.28 million on its Series C Preferred Stock during the nine months ended September 30, 2024. However, future dividend payments will depend on various factors, including the acquisition of new revenue sources and expense management. Overall, Enzon Pharmaceuticals is navigating a challenging financial landscape with limited revenue and profitability prospects in the near term.