UPDATE 1-Enzon Pharma to cut workforce by 26 pct, take charges

Tue Dec 7, 2010 6:43am EST

* Expects $2.8-$3 mln related charges

* Says charges mostly to represent cash expenditure

Dec 7 (Reuters) - Enzon Pharmaceuticals Inc (ENZN.O) said it will cut 33 positions as part of its efforts to reduce costs and take related charges of $2.8-$3.0 million.

Following the job cuts, which is expected to complete by April 15, 2011, Enzon will save about $5.3 million annually.

The biopharmaceutical company said the affected employees have been notified on Friday and are being offered severance packages.

Enzon expects to make the last severance payment in the second quarter of 2012, the company said in a regulatory filing.

The Bridgewater, New Jersey-based company's shares, which have gained about 21 percent since its CEO stepped down in February, closed at $11.21 on Monday on Nasdaq. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Jarshad Kakkrakandy)

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