Savient Pharmaceuticals Reports Third Quarter 2012 Financial Results

     Savient Pharmaceuticals Reports Third Quarter 2012 Financial Results

PR Newswire

BRIDGEWATER, N.J., Nov. 8, 2012

BRIDGEWATER, N.J., Nov. 8, 2012 /PRNewswire/ --Savient Pharmaceuticals, Inc.
(NASDAQ: SVNT) today reported financial results for the three and nine months
ended September 30, 2012, which reflects the Company's continuing
commercialization of KRYSTEXXA ^ ® (pegloticase) in the U.S. Savient ended the
quarter with approximately $116.2 million in cash and short-term investments.

Net sales for KRYSTEXXA were $4.5 million for the third quarter of 2012, a 13%
increase over the second quarter of 2012. For the third quarter of 2012, the
Company had a net loss of $39.7 million, or $0.56 per share, on total revenues
of $4.9 million, compared with a net loss of $27.4 million, or $0.39 per
share, on total revenues of $2.6 million for the same period in 2011. The net
loss for the first nine months of 2012 was $90.3 million, or $1.28 per share,
on total revenues of $13.1 million, compared with a net loss of $71.2 million,
or $1.02 per share, on total revenues of $5.9 million for the same period in
2011. The net loss for the nine-month period ended September 30, 2012 includes
a $21.8 million, or $0.31 per share, gain on the extinguishment of debt.

"During the third quarter we continued to drive awareness and adoption of
KRYSTEXXA in the U.S., which resulted in our seventh consecutive quarter of
sequential sales growth," said Louis Ferrari, President and Chief Executive
Officer of Savient Pharmaceuticals. "We also made progress toward our goal of
commercializing KRYSTEXXA outside of the U.S. with the positive opinion we
received on October 19 from the European Medicines Agency's Committee for
Medicinal Products for Human Use (CHMP). We remain confident in the long-term
opportunity for KRYSTEXXA to address the significant unmet needs of patients
suffering from refractory chronic gout. We are successfully executing our
clinical development plan focused on expanding the clinical utility of
KRYSTEXXA, and we believe that this coupled with our commercialization
strategy will allow us to create long-term value for all of our
stakeholders."

Operational Highlights:

  oEnhanced the executive team:  Appointed John Hamill to the position of
    Senior Vice President & Chief Financial Officer.
  oAchieved significant milestone in strategy to commercialize KRYSTEXXA
    outside of the U.S.: Received a positive opinion from the CHMP that
    recommended KRYSTEXXA for marketing authorization in the EU.
  oPositive financial results:  KRYSTEXXA sales increased sequentially for
    the seventh consecutive quarter and we began to realize the benefits of
    the operational reorganization announced in July 2012.
  oDriving institutional acceptance: The release of the Veterans Affairs
    (VA) monograph, and the KRYSTEXXA criteria for use allows Savient to work
    more closely with VA Medical Centers and improves access for patients and
    providers.
  oContinued to expand the universe of clinical data focused on KRYSTEXXA:
    Eight KRYSTEXXA abstracts were accepted for presentation at the upcoming
    American College of Rheumatology Annual Meeting. In addition, Savient
    successfully submitted four manuscripts for publication at leading medical
    journals and currently has seven additional manuscripts under active
    development.
  oExecuting clinical development strategy: Began actively recruiting for
    the study of KRYSTEXXA in dialysis patients, which is expected to be
    completed by mid-2013.

Financial Results of Operations for the Three Months Ended September 30, 2012

Net revenues increased $2.3 million, or 90%, to $4.9 million for the
three-month period ended September30, 2012, from $2.6 million for the
three-month period ended September30, 2011, as a result of the company's
continued commercialization efforts and sales momentum of KRYSTEXXA.

Cost of goods sold decreased $0.4 million, or 8%, to $4.2 million for the
three-month period ended September30, 2012, from $4.6 million for the
three-month period ended September30, 2011. For the three-month periods
ended September 30, 2012 and 2011,Savient recorded charges of $2.8 million
and $3.4 million, respectively, against operations, related to in-process and
finished goods KRYSTEXXAinventory that the company does not believeit will
be able to sell through to commerce prior to expiration.

Research and development expenses increased $0.9 million, or 16%, to $6.8
million for the three-month period ended September30, 2012, from $5.9 million
for the three-month period ended September30, 2011 in support of Savient's
marketing authorization application, or MAA, filing for KRYSTEXXA in the EU.

Selling, general and administrative expenses decreased $1.9 million, or 8%, to
$20.4 million for the three-month period ended September30, 2012, from $22.3
million for the three-month period ended September30, 2011. The decrease in
expense resulted from the implementation of the company's corporate
reorganization plan during the quarter, which waspartially offset by an
increase in severance expense.

Interest expense on the company's debt increased $3.3 million, or 93%, to $6.8
million for the three-month period ended September30, 2012, from $3.5 million
for the three-month period ended September30, 2011. Interest expense for the
three-month period ended September30, 2012 reflects $2.7 million of cash
interest expense and $4.1 million of non-cash interest expense. Interest
expense for the three-month period ended September30, 2011, reflects $2.9
million of cash interest expense and $0.6 million of non-cash interest
expense.

Other expense, net, increased $6.4 million for the three-month period ended
September30, 2012 primarily related to the increase in the fair value ofthe
company'swarrant liability as a result of the mark-to-market valuation
adjustment in the current quarter, primary driven by the higher underlying
price ofSavient's common stock during the quarter.

Conference Call and Webcast

The Company will host a live conference call and webcast on November 8, 2012
at 9:00 a.m. EST to discuss these results and to answer questions. To
participate by telephone, please dial:

Domestic:      866-393-1565
International: 253-237-1151
Conference ID: 46516560

The live and archived webcast can be accessed on the investor relations
section of the Savient website at www.savient.com. A telephone replay will be
available for fourteen days by dialing:

Domestic:      855-859-2056
International: 404-537-3406
Conference ID: 46516560

ABOUT SAVIENT PHARMACEUTICALS, INC.

Savient Pharmaceuticals, Inc. is a specialty biopharmaceutical company focused
on developing and commercializing KRYSTEXXA® (pegloticase) for the treatment
of chronic gout in adult patients refractory to conventional therapy. Savient
has exclusively licensed worldwide rights to the technology related to
KRYSTEXXA and its uses from Duke University ("Duke") and Mountain View
Pharmaceuticals, Inc. ("MVP"). Duke developed the recombinant uricase enzyme
and MVP developed the PEGylation technology used in the manufacture of
KRYSTEXXA. MVP and Duke have been granted U.S. and foreign patents disclosing
and claiming the licensed technology and, in addition, Savient owns or co-owns
U.S. and foreign patents and patent applications, which collectively form a
broad portfolio of patents covering the composition, manufacture and methods
of use and administration of KRYSTEXXA. Savient supplies Oxandrin®
(oxandrolone tablets, USP) CIII in the U.S. For more information, please visit
the Company's website at www.savient.com.

FORWARD-LOOKING STATEMENTS

All statements other than statements of historical facts included in this
press release are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and Section 21E of the Securities
Exchange Act of 1934, as amended, and are subject to certain risks, trends and
uncertainties that could cause actual results and achievements to differ
materially from those expressed in such statements. These risks, trends and
uncertainties are in some instances beyond our control. Words such as
"anticipate," "believe," "estimate," "expect," "intend," "plan," "will" and
other similar expressions identify forward-looking statements, although not
all forward-looking statements contain these identifying words. In particular,
any statements regarding the safety and efficacy of KRYSTEXXA; market demand
and our ability to gain market acceptance for KRYSTEXXA among physicians,
patients, health care payors and others in the medical community; our ability
to execute on our plans for the expansion of clinical utility for KRYSTEXXA;
our market expansion plans for KRYSTEXXA outside the United States, including
our Marketing Authorization Application which is pending before the European
Medicine Agency; our ability to service our outstanding debt obligations; our
financing needs and liquidity; and our view of the market size for KRYSTEXXA
in the US and ex-US and our view of our penetration of this market are
forward-looking statements. These forward-looking statements involve
substantial risks and uncertainties and are based on our assessment and
interpretation of the currently available data and information, current
expectations, assumptions, estimates and projections about our business and
the biopharmaceutical and specialty pharmaceutical industries in which we
operate. Other important factors that may affect our business are set forth
more fully in our reports filed with the Securities and Exchange Commission,
to which investors are referred for further information. We may not actually
achieve the plans, intentions or expectations disclosed in our forward-looking
statements, and you should not place undue reliance on our forward-looking
statements, which speak only as of the date of publication of this press
release. Actual results or events could differ materially from the plans,
intentions and expectations disclosed in the forward-looking statements that
we make. Our forward-looking statements do not reflect the potential impact of
any future acquisitions, mergers, dispositions, joint ventures or investments
that we may make. We do not have a policy of updating or revising
forward-looking statements and, except as required by law, assume no
obligation to update any forward-looking statements.

SVNT-I

(Tables to Follow)

SAVIENT PHARMACEUTICALS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)
                                                   September30,  December31,
                                                   2012           2011
ASSETS
Current Assets:
Cash and cash equivalents                          $  68,187      $  114,094
Short-term investments                                48,054         55,694
Accounts receivable, net                              4,819          4,737
Inventories, net                                      10,672         10,924
Prepaid expenses and other current assets             6,333          4,186
Total current assets                                  138,065        189,635
Property and equipment, net                           2,055          833
Deferred financing costs, net                         5,194          4,068
 Restricted cash and other assets             3,738          2,580
Total assets                                       $  149,052     $  197,116
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable                                   $  3,942       $  7,046
Deferred revenues                                     488            414
Warrant liability                                     8,067          —
Accrued interest                                      2,982          4,643
Other current liabilities                             23,891         17,962
Total current liabilities                             39,370         30,065
Convertible notes, net of discount of $26,301 at
September 30, 2012 and $54,542 at                     96,140         175,458

December 31, 2011
Senior secured notes, net of discount of $48,155      122,786        —
at September 30, 2012
Other liabilities                                     2,668          3
Stockholders' Deficit:
Preferred stock—$.01 par value 4,000,000 shares       —              —
authorized; no shares issued
Common stock—$.01 par value 150,000,000 shares
authorized; 73,057,000 issued

and outstanding shares at September 30, 2012 and      730            715
71,502,000 issued and

outstanding shares at December 31, 2011
Additional paid-in-capital                            395,335        408,463
Accumulated deficit                                   (507,881)      (417,603)
Accumulated other comprehensive (loss) income         (96)           15
Total stockholders' deficit                           (111,912)      (8,410)
Total liabilities and stockholders' deficit        $  149,052     $  197,116



SAVIENT PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
                            Three Months Ended      Nine Months Ended
                            September 30,
                                                    September 30,
                            2012        2011        2012        2011
Revenues:
Product sales, net          $ 4,916     $ 2,581     $ 13,076    $ 5,855
Cost and expenses:
Cost of goods sold            4,222       4,584       12,669      6,008
Research and development      6,796       5,858       20,747      17,315
Selling, general and          20,427      22,268      72,006      62,761
administrative
                              31,445      32,710      105,422     86,084
Operating loss                (26,529)    (30,129)    (92,346)    (80,229)
Investment income, net        41          39          125         107
Interest expense on debt      (6,805)     (3,535)     (16,962)    (11,842)
Gain on extinguishment of     —           —           21,800      —
debt
Other (expense) income,       (6,408)     (12)        (2,895)     1,738
net
Loss before income taxes      (39,701)    (33,637)    (90,278)    (90,226)
Income tax benefit            —           (6,245)     —           (19,055)
Net loss                    $ (39,701)  $ (27,392)  $ (90,278)  $ (71,171)
Loss per common share:
Basic and diluted           $ (0.56)    $ (0.39)    $ (1.28)    $ (1.02)
Weighted-average number of
common shares:
Basic and diluted             70,956      70,122      70,718      70,037

Savient Pharmaceuticals, Inc.
John P. Hamill
Senior Vice President and Chief Financial Officer
information@savient.com, 732-418-9300

Burns McClellan
Caitlyn Murphy
212-213-0006

SOURCE Savient Pharmaceuticals, Inc.

Website: http://www.savient.com
 
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