Enzon Pharmaceuticals Reports Decline in Revenue and Increased Losses in Q2 2025

Enzon Pharmaceuticals, Inc. reported its financial results for the second quarter of 2025, revealing a significant decline in revenue and an increase in operating losses compared to the previous fiscal period. The company generated no revenue from royalties and milestones during the three and six months ended June 30, 2025, a decrease from $26,000 in the same periods of 2024. Operating expenses for the second quarter totaled $1.5 million, up from $351,000 in the prior year, primarily due to transaction expenses related to a pending merger with Viskase Companies, Inc. The net loss available to common shareholders for the quarter was $1.5 million, or $(0.02) per share, compared to a loss of $255,000, or $(0.00) per share, in the same quarter of 2024.

The company's financial position showed a decrease in total assets, which fell to $44.8 million as of June 30, 2025, down from $47.2 million at the end of 2024. Cash and cash equivalents also decreased to $44.3 million from $46.9 million. Current liabilities were reduced to $803,000 from $1.7 million, primarily due to the absence of dividends payable on Series C preferred stock, which had been $1.3 million at the end of 2024. The accumulated deficit increased to $71.4 million from $69.9 million, reflecting ongoing operational challenges.

Strategically, Enzon is pursuing a merger with Viskase, which was formalized through an Agreement and Plan of Merger on June 20, 2025. This merger is intended to qualify as a tax-free reorganization and is expected to close by the end of 2025. The merger will result in Viskase becoming a wholly owned subsidiary of Enzon, which will subsequently change its name to Viskase Holdings, Inc. The merger is seen as a critical step for Enzon to enhance its operational capabilities and market presence, as the company has not engaged in clinical operations for over a decade.

Operationally, Enzon's cash flow from operating activities showed a significant decline, with a cash outflow of approximately $1.3 million for the six months ended June 30, 2025, compared to an inflow of $492,000 in the same period of 2024. This change is attributed to increased transaction costs related to the merger and decreased interest and dividend income, which fell to $998,000 from $1.3 million year-over-year. The company has indicated that it expects its existing cash reserves to be sufficient to fund operations through at least August 2026, although future royalty revenues are anticipated to be minimal.

Looking ahead, Enzon's management remains focused on the successful completion of the merger with Viskase, which they believe will provide a pathway to future growth and operational stability. However, the company has acknowledged that if the merger does not close, it will continue to operate as a public acquisition vehicle with limited revenue sources. The management's outlook is cautious, given the uncertainties surrounding the merger and the company's ongoing financial challenges.