Enzo Hires Investment Bank Lazard
Enzo Biochem (New York City) has hired the investment bank Lazard to assist in “strategic relationships and new venture creation.” This news comes as Harbert Management Corp. (Birmingham, AL) has purchased a 12% equity stake in Enzo and nominated two new independent directors to its board. HMC wants Enzo to sell its drug development business and non-core patents, and focus on bringing its laboratory division, Enzo Clinical Labs, back to profitability (see LE, October 2019).
Separately, Enzo reported net income of $2.5 million for its fiscal year ended July 31, 2019, compared to a net loss of $10.3 million for the previous fiscal year. Total revenue was $81.2 million, down 20% from $101 million a year ago. The company’s laboratory division recorded revenue of $51.1 million, down 28% from $71.1 million, as a result of reduced reimbursement rates and changes to medical and procedural requirements for genetic testing by payers.