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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (45384)	11/12/2011 1:15:42 AM
From: Jurgis Bekepuris	1 Recommendation Read Replies (1) \| Respond to of 78655

The only positive of investing into biotech is that your money supports science and research that may help people. But you might as well donate it. :)

To: Paul Senior who wrote (45384)	11/12/2011 2:26:09 PM
From: Night Trader	Read Replies (1) \| Respond to of 78655

18% of the float is still short. Biotech shorts are specialists who usually know more than the famous names you mentioned.

To: Paul Senior who wrote (45384)	4/23/2013 8:02:40 PM
From: paulelgin	1 Recommendation Read Replies (3) \| Respond to of 78655

Re: ENZN - Enzon Pharmeceuticals Now may be the time to enter this one, favored by Icahn and Klarman. Special dividend of $1.60 per share (trading around $4 after-hours) was just announced. This is the second special dividend in the last six or eight months, if I'm not mistaken. This company is returning all of its unnecessary cash to shareholders. Enzon derives all of its revenues from drug royalties ($41.5 million/roughly $.95 per share annually), and intends to pay-out that cash to shareholders on a regular basis as well. I think this is a good entry-point. Essentially, Enzon is a company that has no operations, but isn't liquidating just yet - only returning ALL of its cash, and future revenues, to shareholders, in the form of special dividends and royalty payments. The drugs which create royalties are: PegIntron, Sylatron, Macugen, CIMZIA, OMONTYS, Oncaspar, and Adagen. PegIntron is BY FAR the most important of the royalty-generating drugs, bringing in $42.3 million (2010), $38.5 million (2011), and $38.5 million (2012). PegIntron's patent expires in 2016 in the U.S., 2018 in Europe, and 2019 in Japan. It's revenues from those various locales last year were: U.S. $7.1 million, Europe $10.9 million, and Japan $8.4 million. Revenues in the rest of the world were $12.1 million, and those patent expirations vary by country. Let's assume the royalties decrease at 9% a year until patent expiration in the US, then we generate $35 million, $31.85 million, and $29 million over the next three years. If all of those royalties are paid-out in the form of royalty dividends, shareholders stand to have at least another $2.19 distributed to them BEFORE the US patent expires, and have at least two more years of European and three more years of Japanese royalties, not to mention royalties from other countries. So, essentially, we're looking at potentially $3.79 in dividends and special royalty payments to shareholders over the next three years, on a stock that's trading at $4, with more years of royalty payments from Europe and Japan to follow. I like the risk/reward on this one.