Wednesday, May 9, 2012

Savient's (Nasdaq: SVNT) loss widens on higher Krystexxa costs

Savient's (Nasdaq: SVNT) loss widens on higher Krystexxa costsPalm Beach, FL 5/9/12 (StreetBeat) -- Savient Pharmaceuticals Inc (Nasdaq: SVNT), under pressure from its largest creditor to liquidate itself, reported a larger-than-expected first-quarter loss on higher costs related to selling its gout drug Krystexxa.

January-March net loss widened to $34.2 million, or 49 cents per share, from $13.5 million, or 19 cents per share, last year.

Revenue more than doubled to $3.5 million. Sales of Krystexxa contributed nearly 90 percent to the total revenue.

Cost of goods sold more than tripled to $1.7 million.

Analysts on average had expected a loss of 46 cents per share on revenue of $4.6 million, according to Thomson Reuters I/B/E/S.

The company's largest creditor, Tang Capital Partners, was denied a request on Tuesday to bar Savient's plan to raise $44 million.

Tang Capital, calling Krystexxa a commercial failure, demanded earlier this month that Savient liquidate itself and distribute its assets to creditors.

Shares in the East Brunswick, New Jersey-based company have fallen more than 10 percent since its chief financial officer resigned last month.

The stock closed at $1.82 on Tuesday on the Nasdaq.

Please contact for interest in our latest investor relations platform the “CEO Interview Series” with its host Steve Kanaval. The package includes a one-on-one interview with a seasoned industry professional; published segment to our web site with embedded audio/video file; and a compressed file that can be easily e-mailed out to your current and/or potential investors. Please e-mail or call (662) 392-0740 for pricing and scheduling.

StreetBeat Disclaimer

Distributed by Viestly

No comments:

Post a Comment