Showing posts with label Savient Pharma. Show all posts
Showing posts with label Savient Pharma. Show all posts

Savient Pharmaceuticals Names John H. Johnson Chief Executive Officer

Savient Pharmaceuticals, Inc. (Nasdaq: SVNT) today announced that its board of directors has named John H. Johnson as Chief Executive Officer, effective January 31, 2011. Mr. Johnson will also serve as a member of Savient's board of directors.

Mr. Johnson brings significant biotechnology business experience to Savient. Most recently, he served as a Senior Vice President of Eli Lilly and Company and President of Lilly Oncology Business Unit. From August 2007 to November 2009, Mr. Johnson was Chief Executive Officer of ImClone Systems, which develops targeted biologic cancer treatments, and served on ImClone's board of directors until the company was acquired by Lilly in November 2008.

"John is a seasoned and accomplished leader in the biopharmaceutical industry and we are very fortunate to have him join Savient as our CEO," said Stephen O. Jaeger, Chairman of the Board. "With the depth of his industry experience, we believe John is the right person to help Savient bring KRYSTEXXA™ (pegloticase) to market and realize this novel drug's full potential, both for our shareholders and those adult patients suffering from chronic gout refractory to conventional therapy. Since securing FDA approval for KRYSTEXXA in September, we have been focused on bringing this exciting new drug to market. John is ideally suited to move us the rest of the way down the road."

"I am thrilled to be joining Savient at this exciting time," said Mr. Johnson. "KRYSTEXXA is a product that has potential to make a significant difference in the lives of patients around the world. I look forward to working with the dedicated and talented Savient employees to bring relief to those adult patients suffering from chronic gout refractory to conventional therapy. My focus will be on successfully launching KRYSTEXXA globally in order to build value for all our stakeholders."

Savient Pharmaceuticals Provides Business Update

Savient Pharmaceuticals, Inc. today provided an update on its business activities related to the U.S. launch and commercialization of KRYSTEXXA, a PEGylated uric acid specific enzyme indicated for the treatment of chronic gout in adult patients refractory to conventional therapy. Savient continues to believe that it is on track for the promotional launch of KRYSTEXXA in the first quarter of 2011.

The Company announced that:

  • KRYSTEXXA became commercially available in the U.S. by prescription on December 1, 2010 with the commencement of sales and shipments by the Company to its network of specialty distributors and to its wholesale distributors.
  • The first chronic gout patient received treatment with KRYSTEXXA in December.
  • The Company has built out much of its planned sales, marketing, managed care, medical affairs and pharmacovigilance teams, including hiring the full team of six regional business directors and more than 60% of the planned territory sales representatives. As a group, these hires bring additional rheumatology and biologics experience to Savient's commercial team.
  • In early December, the Company activated its pharmacovigilance hotline and comprehensive reimbursement support services hotline and internet portal through its third party service providers PPD and Covance.
  • To date, several large private managed care organizations have added medical benefits coverage for KRYSTEXXA, and others are actively evaluating medical benefits coverage. The Company has also filed for a temporary "C" code and a permanent "J" code application with the Centers for Medicare & Medicaid Services in December of 2010.
  • In support of the commercial launch of KRYSTEXXA, the Company has in inventory at its third party logistics warehouse in the United States, supplies of finished KRYSTEXXA product that is packaged and labeled for distribution and additional supplies of bulk product which are scheduled to be packaged and labeled in the coming months which it believes are, based on the Company's current projections, adequate to supply market demand through the first quarter of 2012.
  • The Company has also been advancing its plans to submit a marketing authorization application (MAA) for centralized review in the EU. In this regard, in December 2010 the Pediatric Committee (PDCO) of the European Medicines Agency approved the Company's pediatric investigation plan for the treatment and prevention of hyperuricemia, which is a condition to filing for marketing approval in the EU. While the Company has made significant progress in preparing the MAA for KRYSTEXXA, the Company is revising its projected timing for this filing to the end of the first quarter of 2011.

The Company further announced that its third party contractor manufacturing organizations (CMO) in Israel and Indianapolis, Indiana have commenced regularly scheduled commercial manufacturing campaigns to build inventory of pegloticase and KRYSTEXXA. In connection with this process, the Company's third party CMO in Israel and Merck Biomanufacturing Network, formerly known as Diosynth ("Merck"), which the Company is working to qualify as a secondary contract manufacturer, have experienced some batch failures based on one manufacturing specification. While the Company believes these batch failures are within normal industry failure rates experienced for the commencement of biologic commercial manufacturing, this failure rate is above the level that the Company believes to be acceptable for normal ongoing operations. Savient personnel, assisted by an outside manufacturing and quality consulting firm, have completed a review of these batch failures and believe they have identified the root cause of the batch failures at both the Company's third party CMO in Israel and Merck. Under the Company's direction, the Company's CMO in Israel and Merck are in the process of implementing remediation steps that the Company and its outside consulting firm believe will minimize or eliminate these failures moving forward. Prior to implementing these remediation steps, the Company's CMO in Israel, under the close supervision and direction of the Company, has continued to manufacture pegloticase and has recently manufactured two batches of pegloticase which have met all specifications.

As a result of the batch failures at Merck, the Company has determined that the manufacturing validation campaign at Merck was unsuccessful. The Company plans to repeat its validation campaign batches at Merck in 2011, which the Company expects will result in incremental additional costs of approximately $9 to $10 million over a two-year period.

The Company also announced that it has met all post-marketing and REMS commitments required to be completed to date. The Company believes that it is on schedule to provide the protocol for the post-marketing observational study in February 2011 and to commence the study according to the timeline provided in the September 2010 FDA action letter approving KRYSTEXXA.

SAVIENT PHARMACEUTICALS ANNOUNCES EXPECTED AVAILABILITY OF KRYSTEXXA™ FOR PRESCRIPTION AND REPORTS T

Savient Pharmaceuticals, Inc. (Nasdaq: SVNT) today announced that it plans to commence shipments of KRYSTEXXA™ to specialty distributors on November 30, 2010. KRYSTEXXA, a PEGylated uric acid specific enzyme indicated for the treatment of chronic gout in adult patients refractory to conventional therapy, is then expected to be commercially available for prescription as of December 1, 2010. In conjunction with the commercial availability of KRYSTEXXA, Savient plans to launch its reimbursement and pharmacovigilance hotline services on November 22, 2010 for use by prescribers and patients. Savient expects to announce the pricing for KRYSTEXXA at the time it commences commercial distribution.

"The commercial availability of KRYSTEXXA marks another significant milestone for both patients and the company as it is the first FDA approved therapy that addresses a significant unmet medical need in the treatment of chronic gout in adult patients refractory to conventional therapy," said Paul Hamelin R.Ph., President of Savient Pharmaceuticals. "We believe that making KRYSTEXXA commercially available is a significant step towards realizing our mission of transforming the lives of the patients in the U.S. suffering from this crippling disease. These patients have been waiting for decades for a therapy that gives them hope of reversing this severely debilitating disease."

Savient also today reported financial results for the three and nine months ended September 30, 2010. The Company ended the quarter with $78.1 million in cash and short-term investments, a decrease of $10.9 million for the quarter and $30.1 million since December 31, 2009. As of November 2, 2010, the Company had $75.7 million in cash and short-term investments.

For the third quarter of 2010, the Company had a net loss of $59.4 million, inclusive of a non-cash valuation adjustment of $43.2 million relating to warrants, or $0.89 per share, on total revenues of $1.0 million, compared with a net loss of $13.9 million, or $0.23 per share on total revenues of $0.3 million for the same period in 2009

F.D.A. Rejects Savient’s Gout Drug

The Food and Drug Administration has declined to approve a gout drug developed by Savient Pharmaceuticals, the company said on Sunday.

The decision was in spite of a 14-1 recommendation for approval by an F.D.A. advisory committee in June. Shares of Savient are likely to tumble on Monday.

Savient, based in East Brunswick, N.J., said it hoped it could resubmit its application for approval of the drug, called Krystexxa, early next year.

Gout is a painful form of arthritis that appears to be on the increase, in part because of richer diets, obesity and the aging of society. Savient had hoped Krystexxa would be the second new drug approved for the disease this year, after a drought of more than 40 years.

The F.D.A.’s decision appeared to be based not on concerns about the drug’s effectiveness but on Savient’s manufacturing process, according to the company’s news release.

The agency concluded that a proposed change in the manufacturing process might make the marketed product different from the experimental product used in the clinical trial.

The agency also said that Savient would need to have a program to monitor and reduce the side effects of the drug, particularly allergic reactions and cardiovascular problems.

The F.D.A. typically does not discuss such regulatory decisions. Even if Krystexxa had been approved, it had competition.

On Thursday, the F.D.A. approved a drug called Colcrys, made by Mutual Pharmaceutical, to treat gout flares. The F.D.A.’s action was part of an effort to formally approve drugs that have been used for a while without thorough regulatory review.

Savient FDA Decision Looms As Street Looks To Partnership,Sale

NEW YORK -Savient Pharmaceuticals Inc. (SVNT) is expecting an approval decision from the Food and Drug Administration for its gout treatment Krystexxa, either Friday or Monday, but the real excitement lies in a potential partnership or acquisition.

The drug received a strong 14-to-1 positive recommendation from an FDA panel in June and the stock has almost tripled since then, recently trading at $15.65.

Gout is a form of arthritis and affects about 2.1 million people in the U.S., according to the Arthritis Foundation. Krystexxa would be used in patients that don't respond or are unresponsive to standard therapies such as anti-inflammatory drugs or allopurinol, an enzyme inhibitor.

The East Brunswick, N.J., drug developer has long stated that it will need to form a partnership to successfully market Krystexxa in the U.S. and overseas, and many believe that its market value of just $950 million makes a buyout more likely.

"Although investors have learned to exercise caution ahead of most regulatory milestones, we see little downside in SVNT shares," writes Cowen & Co. analyst Eric Schmidt.

Of the possible outcome, Schmidt believes it is most likely that Krystexxa will either receive straight approval or get a request for more information that could delay approval for up to 90 days.

In a worst-case scenario, which Schmidt believes is unlikely, the agency could request more data that could lead to another clinical trial and create a more significant delay.

Overall, analysts are generally bullish. Of the nine analysts that have a rating on Savient, six have the equivalent of a strong buy or buy and three have a hold, according to Thomson Reuters.

Regardless, there is a large contingent of shares - short interest is 18% of the float - that are betting that the FDA will deliver disappointing news, causing the stock to fall from its recent gains.

But success could squeeze those investors and lead to stock price volatility in the wake of the news.

Wedbush Morgan analyst Kimberly Lee notes that the FDA has missed more than 60% of its targeted decision dates, so any minor delay isn't cause for alarm. Conversely, she recommends investors take advantage of any related decline in the stock price.

Lee, projecting $400 million in peak annual Krystexxa sales, expects a large pharmaceutical company to quickly acquire Savient if that approval arrives, because of the lack of gout treatments on the market, a dearth of competition and the simple, one-drug structure of the company.

Others on Wall Street have echoed that sentiment, noting that the company hasn't been aggressively building a sales force and has slowed down its manufacturing prior to the approval.

"We believe an acquirer could pay at least $20 a share," Lee said.

FedEx, Beazer Homes, Netflix are big movers

NEW YORK — Stocks that moved substantially or traded heavily Wednesday on the New York Stock Exchange and Nasdaq Stock Market:

NYSE:

Watson Pharmaceuticals Inc., up $1.43 at $30.27
The pharmaceutical company bought fast-growing generic drug maker Arrow Group, which it said would boost yearly sales to $3 billion.

NASDAQ:

Savient Pharmaceuticals, Inc., up $3.34 at $12.61
An FDA panel of arthritis experts said the government agency should approve the drug maker's gout treatment candidate, Krystexxa.

F.D.A. Panel Recommends Approval of a Gout Drug

A federal advisory committee on Tuesday recommended approval of a drug developed by Savient Pharmaceuticals to treat severe cases of gout.

The 14-to-1 vote for approval reflected a general consensus that the effectiveness of the drug in relieving severe pain and disability outweighed the risk of allergic reactions and suggestions that it could cause cardiovascular problems.

The Food and Drug Administration usually follows the advice of its advisory committees. If it does so in this case, the drug, called Krystexxa, would be the second gout treatment approved this year, after a drought of more than 40 years. Uloric, from Takeda Pharmaceutical, was approved in February.

Gout is an exceedingly painful form of arthritis that afflicts the big toe and other joints. It is sometimes called the “disease of kings” because it can be brought on by a rich diet of red meat, seafood and alcohol that for centuries was available mainly to the wealthy.

With such diets now available to many people, it is estimated that two million to six million Americans have gout. And the number is rising as the population becomes older and heavier.

Savient, based in East Brunswick, N.J., said its drug was intended for only about 50,000 Americans who cannot be treated with other drugs.

In clinical trials, the drug worked for about 40 percent of patients, in some cases bringing marked improvement.

“The effects of this drug are so striking that they can be demonstrated in a small study,” said one committee member, Dr. Milton Packer, a cardiologist at the University of Texas Southwestern Medical School.

But the small size of the studies also made it impossible to determine whether an increase in heart problems among those taking Krystexxa was caused by the drug or was just chance, Dr. Packer and other panel members said. If the drug is approved, they said, further studies should be done on its safety and its use carefully restricted to those not helped by other therapies.

A handful of gout patients testified that the drug had dissolved unsightly and disabling lumps on their bodies, called tophi, and allowed them to walk or use their hands again. Savient paid for hotels and transportation for some patients to attend the meeting, which was in Silver Spring, Md.

“I do not recall participating in any trial where patients were so profoundly transformed by a therapy,” Dr. Herbert Baraf, a Maryland rheumatologist who treated some of the patients in the trials, testified to the committee.

Gout is caused by the buildup of a chemical called uric acid in the blood. Krystexxa, also known as pegloticase, is a form of the enzyme uricase, which breaks down uric acid. Savient licensed worldwide rights to the drug from Duke University and Mountain View Pharmaceuticals of Menlo Park, Calif.

Savient has not said what it will charge for Krystexxa but analysts expect it to amount to tens of thousands of dollars a year. The drug is given by intravenous infusion every two or four weeks.

Regular trading in Savient’s stock was halted on Tuesday, after the shares had closed at $9.27 on Monday. Shares rose as high as $11.90 in after-hours trading on Tuesday.

Stocks Of The Day: Savient Pharmaceuticals (NASDAQ: SVNT); Ameriprise Financial (NYSE: AMP)

Savient Pharmaceuticals Inc. (NASDAQ: SVNT), a specialty biopharmaceutical company, focuses on developing, manufacturing, and marketing pharmaceutical products that target unmet medical needs. The company sells and distributes branded and generic versions of oxandrolone, a drug used to promote weight gain following involuntary weight loss.

Last week, drug regulator FDA said in its briefing documents that the firm's drug Krystexxa (pegloticase) appears effective at treating the symptoms of gout, which is caused by excess uric acid in the body, despite concerns over the drug’s safety. The regulators raised concerns about serious adverse events, including deaths, in patients treated with the drug, Wall Street analysts are confident of drug's approval.

The FDA is scheduled to ask a panel of outside arthritis experts next Tuesday to weigh in on the drugs risks and benefits. Most of the industry experts expect the FDA Arthritis Drugs Advisory Committee to focus more on Krystexxa's ability to fill an unmet medical need for refractory gout than by its safety issues.

Disease of Rich Extends Its Pain to Middle Class

Lonnie Matthews, a retired building maintenance engineer in Burlington, N.C., has something in common with King Henry VIII, Sir Isaac Newton and Benjamin Franklin. He has gout.

Often called the “disease of kings” because of its association with the rich foods and copious alcohol once available only to aristocrats, gout is staging a middle-class comeback as American society grows older and heavier.

The rising tide of gout — an extremely painful arthritis of the big toe and other joints — is leading the pharmaceutical industry to rediscover what it had considered a disease of the past. Companies are now racing to improve upon decades-old generic drugs that do not work well for everyone.

Already this year the Food and Drug Administration has approved the first new gout drug in more than 40 years, a product called Uloric from Takeda Pharmaceutical.

Another new drug, Krystexxa, made by Savient Pharmaceuticals of East Brunswick, N.J., will be reviewed for possible approval by an F.D.A. advisory committee on Tuesday.

And several other companies are testing drugs in clinical trials.

“It’s kind of like the forgotten disease,” said Barry D. Quart, chief executive of one of those companies, Ardea Biosciences of San Diego.

Ardea discovered accidentally that an AIDS drug it was developing might work against gout. Now the company has shifted its focus to gout, envisioning annual sales of $1 billion if its drug is successful.

That would mean a huge increase in spending on gout medicines, which had sales of only $53.4 million last year, according to IMS Health, a health care information company. Uloric, the drug from Takeda, sells a daily pill for at least $4.50 compared with 10 to 50 cents for the most commonly used generic, allopurinol.

It is estimated that two million to six million Americans have gout. Although the disease becomes more common as people age, some men develop gout in their 40s and 50s, or even younger. It is three to four times as common in men as in women, in part because estrogen is thought to protect premenopausal women from the illness.

Various studies suggest that the number of cases in this country has as much as doubled in the last three decades.

“We have accumulated a lot of people with severe disease,” said Dr. Robert A. Terkeltaub, section chief of rheumatology at the Veterans Affairs Medical Center in San Diego and a consultant to some of the companies developing gout drugs. And the typical case these days, is “not going to be someone who looks like Henry VIII,” he said. “Now it’s going to be some 80-year-old lady with congestive heart failure.”

One of the severe cases is Mr. Matthews, who had controlled his disease for many years with the generic allopurinol. But when he developed renal problems in 2006, he stopped taking allopurinol because it can be harmful to those with bad kidneys. After that, Mr. Matthews was bedridden or in a wheelchair and in such excruciating pain in many of his joints that he said he contemplated suicide.

“It was like having a toothache so bad you can’t stand it, all over your body,” he said.

Mr. Matthews, 76, says he found relief as a participant in a clinical trial of Savient’s Krystexxa, the drug now up for review by the F.D.A.

Gout is caused by the buildup of a chemical called uric acid in the blood. Uric acid is formed by the breakdown of purines, which are components of DNA, RNA and some other important molecules in the body.

Some types of meat and fish, as well as beer, are particularly rich in purines and can raise the risk of gout. There is also evidence that sugary soft drinks raise the risk.

When uric acid levels get too high, the chemical can form needlelike crystals that accumulate in joints.

In the early stages of the disease, gout attacks, which can last several days and are excruciating, occur only rarely. But over time, the frequency increases and people can develop disfiguring and disabling lumps of the chalky white crystals, called tophi. Michael Clayton of Atlanta, who has severe gout, said he had to quit a job as general manager of a restaurant after customers complained about the tophi on his hands, which sometimes oozed liquid resembling Wite-Out.

Many doctors and patients treat only gout attacks. They use either pain relievers like naproxen, steroids or colchicine — a crocus plant derivative that has been used for centuries.

Many of the new drugs lower uric acid levels in the blood, meaning they can prevent gout attacks and keep the disease under control.

A problem in getting doctors to prescribe chronic treatment for gout is that many patients are reluctant to admit they have the disease because of its association with gluttony.

“It’s part of society’s view of gout that this is something self-inflicted,” said Dr. N. Lawrence Edwards, professor of medicine at the University of Florida.

So the industry is trying to spread the word that genetics and other factors, not just diet, contribute to gout. Takeda and Savient bankroll the Gout and Uric Acid Education Society, which is led by Dr. Edwards and was formed in 2005 to raise awareness of the disease.

Another reason that gout is shedding its image as a disease of the past is preliminary evidence — though still far from proof — that high uric acid levels might also contribute to modern-day ills like hypertension, obesity, heart disease, kidney impairment and diabetes.

In one small study published last year, treatment with allopurinol reduced high blood pressure in adolescents.

Right now, it is estimated that 15 million to 20 million Americans have elevated uric acid levels, known as hyperuricemia. But they do not have gout symptoms and are therefore not treated.

If further studies prove that high uric acid levels contribute to other diseases, though, then “hyperuricemia” could be defined as a disease in its own right and millions of people might one day take drugs to lower uric acid levels, much as they now do to lower cholesterol.

Paul Hamelin, president of Savient, said, “There’s a huge amount of ground that nobody’s ever plowed yet.”

Call Traders Jump on Savient Pharmaceuticals' FDA News

CINCINNATI-Pharmaceutical concern Savient Pharmaceuticals Inc. (NASDAQ: SVNT) has rocketed out of the gate this morning, surging more than 50% to trade above the $9 level for the first time since Oct. 24. The buying spree surrounds the release of briefing documents ahead of a meeting by a Food and Drug Administration (FDA) panel to discuss approval of Savient's Krystexxa gout treatment. "The tone was very positive in the documents," Collins Stewart analyst Salveen Kochnover said in an interview. "There is really nothing unexpected in the documents."

Options traders agree, as SVNT is already being bombarded by call volume following the documents' release. Most active on the day is the June 5 call, which expires at the end of next week. More than 13,000 contracts have changed hands at this front-month strike, with open interest totaling 49,705 contracts. Yesterday, SVNT saw option volume soar to more than four times its daily average, with more than 80% of the activity crossing on the call side.

SAVIENT PHARMACEUTICALS INC

Our management's discussion and analysis of financial condition and results of operations contains statements which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements that set forth anticipated results based on management's plans and assumptions. From time to time, we also provide forward-looking statements in other materials we release to the public as well as oral forward-looking statements. Such statements discuss our strategy, expected future financial position, results of operations, cash flows, financing plans, development of products, strategic alliances, intellectual property, competitive position, plans and objectives of management. We often use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "will" and similar expressions to identify forward-looking statements. In particular, the statements regarding our new strategic direction and its potential effects on our business and the development of our lead drug candidate KRYSTEXXATM (pegloticase), are forward-looking statements. Additionally, forward-looking statements include those relating to future actions, prospective products or product approvals, future performance, financing needs, liquidity or results of current and anticipated products, sales efforts, expenses, interest rates, foreign exchange rates and the outcome of contingencies, such as legal proceedings, and financial results. We cannot guarantee that any forward-looking statement will be realized. Achievement of future results is subject to risks, uncertainties and potentially inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. You should bear this in mind as you consider forward-looking statements. We undertake no obligation to publicly update forward-looking statements. You are advised, however, to consult any further disclosures we make on related subjects in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Savient Pharmaceuticals Reports First Quarter 2009 Financial Results

EAST BRUNSWICK, N.J., - Savient Pharmaceuticals, Inc. (Nasdaq: SVNT) today reported financial results for the three months ended March 31, 2009. For the first quarter of 2009, the Company had a net loss of $21.9 million, or $0.41 per basic and diluted share, on total revenues of $1.1 million compared with a net loss of $17.6 million, or $0.33 per basic and diluted share on total revenues of $1.2 million for the same period in 2008. The Company ended the quarter with $58.1 million in cash and short-term investments, a reduction of $20.5 million during the quarter. In April 2009, we raised $31.0 million from a registered direct offering, which yielded $29.0 million in cash, net of offering and related expenses. Our pro forma cash and short-term investments balance as of March 31, 2009, reflecting receipt of the net proceeds from the April registered direct offering, is $87.1 million.

Operational Highlights:

Filed key amendments to our Biologics License Application (BLA) for KRYSTEXXA(TM) (pegloticase) to strengthen and clarify data included in our previously submitted BLA. The BLA priority review Prescription Drug User Fee Act (PDUFA) action date was extended by three months to August 1, 2009.

First published study to document a significant loss in the quality of life and increased functional disability in patients with treatment failure gout appeared in the Journal of Rheumatology.
"We began the year with the notification from the Food and Drug Administration (FDA) of a priority review for KRYSTEXXA and we focused our Company priorities on obtaining FDA approval," said Paul Hamelin, President of Savient. "Early in the quarter, we combined the insights and strategic input of our panel of world class external experts with our internal understanding of this application resulting in our decision to file several key amendments which we believe strengthened and clarified the BLA. The FDA reviewed the amendments and determined that the additional information contained in the submissions constituted major amendments, accepted the amendments to the BLA and elected to extend the current review period and revised our PDUFA date to August 1, 2009. We also took aggressive steps to maintain a stable balance sheet by effectively controlling expenses during the period despite growing resource needs for manufacturing, the approval process and prelaunch preparation. In conjunction with being financially prudent, we successfully completed an important financing in the face of extraordinary market conditions, allowing us to strengthen our cash position as we approach our PDUFA action date. We believe the first quarter of 2009 has been an important transitionary quarter for the Company, resulting in significant progress achieved towards our commitment to bring KRYSTEXXA to the market to treat the disabling aspects of the treatment failure gout population."

Financial Results of Operations for the Three Months Ended March 31, 2009

Total revenues decreased $0.1 million, or 8%, to $1.1 million for the three months ended March 31, 2009, from $1.2 million for the three months ended March 31, 2008. The decrease was due to lower gross product sales of Oxandrin(R), our product that promotes weight gain following involuntary weight loss due to disease or medical condition, as a result of the continued impact of generic competition partially offset by lower provisions for product returns year over year. We expect that revenues from Oxandrin and our authorized generic product oxandrolone will decrease or remain flat in future periods, due to generic competition and overall demand for the product.

Cost of goods sold increased $0.2 million, or 47%, to $0.5 million for the three months ended March 31, 2009, from $0.3 million for the three months ended March 31, 2008. The increase is substantially due to a change in our product mix, as our authorized generic oxandrolone has become a greater percentage of overall gross sales and carries higher costs of sales than Oxandrin.

Research and development expenses increased by $1.6 million, or 14%, to $12.8 million for the three months ended March 31, 2009, from $11.2 million for the three months ended March 31, 2008. The increase was primarily due to $1.8 million of costs associated with the manufacturing of commercial batches of pegloticase active pharmaceutical ingredient (API) by our third-party manufacturer and an additional severance liability recorded during the quarter. Partially offsetting these higher expenses were lower validation and technology transfer costs relating to our secondary source supplier for pegloticase API.

Selling, general and administrative expenses increased $0.2 million, or 2%, to $9.5 million for the three months ended March 31, 2009, from $9.3 million for the three months ended March 31, 2008. The increase was mainly due to an additional severance liability recorded during the quarter partially offset by lower legal fees as the prior year results reflect expenses for Oxandrin-related patent infringement litigation.

Investment income, net decreased $1.2 million to an expense of $0.2 million for the three months ended March 31, 2009, from income of $1.0 million for the three months ended March 31, 2008. The decrease was primarily attributable to lower dividend and interest income from lower cash, cash equivalent and investment balances and as a result of lower yields earned on these investments.

CONFERENCE CALL

Savient will host a live web cast to review first quarter 2009 results on May 7, 2009 at 10:00 a.m. EDT. Both the live and archived web cast can be accessed from the Investor Relations page of Savient's website at http://www.savient.com. A digital recording of the web cast will be available approximately one-hour following the conclusion of the call and will be available for fourteen days. A telephone replay will be available from 1:00 p.m. EDT on May 7, 2009 through 11:59 p.m. EDT on May 21, 2009. To access the recording, use the Dial-In Number and the Conference ID listed below:

Dial: (888) 203-1112 (domestic) or (719) 457-0820 (international)

Conf ID: 4393613

Superhit News

News Archive