Savient Pharma Plans Sale of up to 4.6M Shares
Thu, 10/08/2009 - 5:08am
EAST BRUNSWICK, N.J. (AP) — Savient Pharmaceuticals Inc. plans to offer up to 4.6 million shares to raise money as it continues to seek regulatory clearance for its chronic gout treatment Krystexxa. Savient said it will sell 4 million shares to the public, and the underwriters of its offer will have the option to buy another 600,000 shares. The company had 61.6 million shares on the market as of Aug. 10, and its share count would rise by 7.5 percent if all 4.6 million shares are sold. In aftermarket trading, Savient stock lost 92 cents, or 6.1 percent, to $14.15 from the regular session close of $15.07. Savient expects to finish a new Food and Drug Administration submission for Krystexxa in early 2010. The FDA declined to approve the drug in August, pointing to changes in the way Krystexxa was made, and problems at a manufacturing facility. Savient also plans to give the agency a safety update. Gout is a painful type of arthritis caused by excess uric acid crystallizing and building up around joints and tendons. The buildup causes inflammation. Krystexxa, or pegloticase, is intended to treat gout that has not been helped by other therapies. In September, Savient cut 26 job, or 38 percent of its staff, to reduce costs. After termination-related expenses it expects to save $3.3 million from those moves.