DellaCamera Capital Management, LLC and related entities, long-time, beneficial holders of approximately 8.2% of the shares of Enzon Pharmaceuticals, Inc. (ENZN), have filed a preliminary consent solicitation statement with the SEC to amend the Company's bylaws to allow shareholders to remove the Company's CEO and/or President from all of such person's officer's positions; to remove Jeffrey H. Buchalter, Enzon's current CEO and President, from such positions; and to amend the Company's bylaws to allow the Board to change these shareholder adopted bylaws only by unanimous vote.
Richard Mansouri, Portfolio Manager and Head of Research at DellaCamera, stated: "We are seeking to remove CEO and President Jeffrey Buchalter because we believe that he is directly responsible for the massive destruction of shareholder value that has occurred over his nearly four and one-half year tenure with Enzon. Mr. Buchalter has presided over an approximate 56% decline in Enzon's stock price, which we believe is largely the result of numerous failed initiatives and a severe lack of control over the Company's R&D expenditures, which have been spent on a number of high-risk projects that we believe are much better suited for a larger pharmaceutical company. With 2009 pre-R&D operating cash flow expected to be between $80 million to $90 million, we firmly believe in the value and significant cash flow generating potential of Enzon's Specialty Pharmaceutical and Royalty businesses, but we have seen little evidence that Mr. Buchalter has deployed, or intends to deploy, this cash flow in a manner that will benefit the shareholders. We call upon Enzon shareholders to act before Mr. Buchalter's policies eliminate further value."
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