Savient Pharmaceuticals Reports Fourth Quarter and Year-End 2012 Financial Results

  Savient Pharmaceuticals Reports Fourth Quarter and Year-End 2012 Financial
                                   Results

PR Newswire

BRIDGEWATER, N.J., March 19, 2013

BRIDGEWATER, N.J., March 19, 2013 /PRNewswire/ --Savient Pharmaceuticals,
Inc. (NASDAQ: SVNT) today reported financial results for the three months and
full year ended December 31, 2012. Savient ended the quarter with
approximately $96.3 million in cash and short-term investments, a decrease of
$19.9 million for the quarter.

Net sales of KRYSTEXXA were $4.7 million for the fourth quarter of 2012, a 3%
increase over the third quarter of 2012. For the three-month period ended
December 31, 2012, the Company had a net loss of $28.0 million, or $0.39 per
share, on total revenues of $4.9 million, compared with a net loss of $30.9
million, or $0.44 per share, on total revenues of $3.7 million for the same
period in 2011. The net loss for the year ended December 31, 2012 was $118.3
million, or $1.67 per share, on total revenues of $18.0 million, compared with
a net loss of $102.0 million, or $1.46 per share, on total revenues of $9.6
million for the same period in 2011. The net loss for the year ended December
31, 2012, includes a $21.8 million, or $0.31 per share, gain on the
extinguishment of debt. Additionally, the net loss for the years ended
December 31, 2012 and 2011 were impacted by charges to cost of goods sold of
$15.7 million and $4.7 million, respectively, resulting in an increase to
expense of $11.0 million. These charges were primarily due to KRYSTEXXA
inventory that we do not believe will be able to sell through to commerce
prior to expiration.

"Savient is committed to expanding the commercial footprint of KRYSTEXXA. As
seen by the fourth quarter and recent developments, the Company is focused on
its comprehensive long-term strategy to not only broaden the clinical utility
of KRYSTEXXA, but also further explore opportunities that complement Savient's
strengths and strategic vision," said Lou Ferrari, President and Chief
Executive Officer of Savient. "Part of this long-term corporate strategy is
to ensure that the true value of this highly effective orphan drug is
reflected appropriately. The recent 30% price increase of KRYSTEXXA
represents management's commitment to execute upon this strategy and continue
to build long-term value for our stakeholders."

Fourth Quarter Operational Highlights and Recent Developments:

  oAnnounced additional new data demonstrating KRYSTEXXA-treated refractory
    chronic gout patients experienced significantly improved health-related
    quality of life
  oAnnounced new data from an open-label extension (OLE) study published in
    the Annals of the Rheumatic Diseases reinforcing the safety and efficacy
    profile of KRYSTEXXA
  oAnnounced the elections of Robert G. Savage and Dr. David Meeker to the
    Company's board of directors
  oCompleted study of KRYSTEXXA in dialysis patients, and anticipate data to
    be presented at a major scientific meeting later this year
  oReceived European Commission marketing authorization in January 2013 for
    KRYSTEXXA^® for the treatment of certain patients with chronic tophaceous
    gout in the EU
  oAnnounced a co-promotion agreement with Swedish Orphan Biovitrum AB (Sobi)
    for Kineret^® (anakinra) in the U.S.

Financial Results of Operations for the Three Months Ended December 31, 2012

Net revenues increased $1.2 million, or 33%, to $4.9 million for the
three-month period ended December 31, 2012, from $3.7 million for the
three-month period ended December31, 2011, as a result of increasing
awareness and acceptance of KRYSTEXXA among our target customer base, and to a
lesser extent, the impact of our price increases. Over the past year, we have
increased the selling price of KRYSTEXXA by approximately 29% from the
original list price of $2,300 per vial to $2,962 per vial. We further
increased the selling price in 2013 by an additional 30%, raising the price to
$3,850 per vial, effective January 16, 2013.

Cost of goods sold increased $6.4 million to $9.7 million for the three-month
period ended December 31, 2012, from $3.3 million for the three-month period
ended December 31, 2011. For the three-month periods ended December 31, 2012
and 2011, we recorded charges of $7.9 million and $1.3 million, respectively,
against operations, resulting in a year-over-year increase in cost of goods
sold of $6.6 million. The increase in the charges to cost of goods sold
related to raw material inventory and commitments, and finished goods
inventory that we do not believe we will be able to sell through to commerce
prior to expiration, resulting from lower sales demand forecasts for KRYSTEXXA
in future years.

Research and development expenses decreased $2.0 million, or 27%, to $5.5
million for the three-month period ended December 31, 2012, from $7.5 million
for the three-month period ended December 31, 2011. The decrease is primarily
the result of reduced spending on post marketing commitment costs partially
offset by increased costs to support our marketing authorization application,
or MAA, filing for KRYSTEXXA in the EU.

Selling, general and administrative expenses decreased $11.6 million, or 41%,
to $16.5 million for the three-month period ended December 31, 2012, from
$28.1 million for the three-month period ended December 31, 2011. The decrease
in expense is mainly due to a reduction in selling and promotion costs for
KRYSTEXXA compared to commercial launch year-related expenses in 2011 and cost
containment activities resulting from our reorganization plan initiated in
July 2012.

Interest expense on our debt increased $2.4 million, or 53%, to $6.9 million
for the three-month period ended December31, 2012, from $4.5 million for the
three-month period ended December 31, 2011. Interest expense for the
three-month period ended December 31, 2012 reflects $2.7 million of cash
interest expense and $4.2 million of non-cash interest expense. Interest
expense for the three-month period ended December 31, 2011 reflects $2.7
million of cash interest expense and $1.8 million of non-cash interest
expense.

Other income, net increased $4.5 million to $5.6 million for the three-month
period ended December 31, 2012, from $1.1 million for the three-month period
ended December 31, 2011. This increase is primarily due to a non-cash gain of
$5.1 million during the three-month period ended December 31, 2012 relating to
the mark-to-market valuation adjustment of our warrant liability.

CONFERENCE CALL AND WEBCAST
The Company will host a live conference call and webcast on March 19, 2013, at
9:00 a.m. Eastern Time to discuss these results and to answer questions. To
participate by telephone, please dial:

Domestic:      866-393-1565
International: 253-237-1151
Conference ID: 99134844

The live and archived webcast can be accessed via the investor relations
section of the Savient website at www.savient.com. A telephone replay will be
available through March 25, 2013, by dialing:

Domestic:      855-859-2056
International: 404-537-3406
Conference ID: 99134844

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 who do not respond 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. In the U.S., Savient also supplies
Oxandrin^® (oxandrolone tablets, USP) CIII and co-promotes Kineret^®
(anakinra) with Swedish Orphan Biovitrum AB (Sobi). 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 that 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®, the potential to expand the clinical
utility of KRYSTEXXA, status of our KRYSTEXXA marketing efforts in the US and
additional plans related thereto both in the US and EU, market demand and
reimbursement for KRYSTEXXA, our view of the market size in the US and EU, our
market expansion plans outside the US and EU and our co-promotion arrangement
for Kineret® 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. Important factors that may affect our ability to achieve the matters
addressed in these forward-looking statements include, but are not limited to,
our ability to co-promote Kineret and continue our commercialization of
KRYSTEXXA; our ability to retain the personnel; competition from existing
therapies and therapies that are currently under development; whether we are
able to obtain financing, if needed; economic, political and other risks
associated with foreign operations; risks of maintaining protection for our
intellectual property; risks of an adverse determination in intellectual
property litigation; and risks associated with stringent government regulation
of the biopharmaceutical industry and other important factors 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

(In thousands, except share data)


                                                  December 31,   December31,
                                                  2012           2011
ASSETS
Current Assets:
Cash and cash equivalents                         $  50,332      $  114,094
Short-term investments                               45,949         55,694
Accounts receivable, net                             4,341          4,737
Inventories, net                                     4,325          10,924
Prepaid expenses and other current assets            4,367          4,186
Total current assets                                 109,314        189,635
Property and equipment, net                          2,050          833
Deferred financing costs, net                        4,969          4,068
Restricted cash and other assets                     2,873          2,580
Total assets                                      $  119,206     $  197,116
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable                                  $  3,435       $  7,046
Deferred revenues                                    580            414
Warrant liability                                    2,935          —
Accrued interest                                     3,150          4,643
Other current liabilities                            21,516         17,962
Total current liabilities                            31,616         30,065
Convertible notes, net of discount of $25,354 at
December 31, 2012 and                                97,087         175,458

$54,542 at December 31, 2011
Senior secured notes, net of discount of $45,114     125,827        —
at December 31, 2012
Other liabilities                                    2,973          3
Stockholders' Deficit:
Preferred stock—$.01 par value 4,000,000 shares      —              —
authorized; no shares issued
Common stock—$.01 par value 150,000,000 shares
authorized; 73,083,000

issued and outstanding shares at December 31,       731            715
2012 and 71,502,000 issued

and outstanding shares at December 31, 2011
Additional paid-in-capital                           397,191        408,463
Accumulated deficit                                  (535,915)      (417,603)
Accumulated other comprehensive (loss) income        (304)          15
Total stockholders' deficit                          (138,297)      (8,410)
Total liabilities and stockholders' deficit       $  119,206     $  197,116





SAVIENT PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)


                          Three-Months Ended        Twelve-Months Ended
                          December 31,
                                                    December 31,
                          2012         2011         2012          2011
Revenues:
Product sales, net        $ 4,947      $ 3,710      $ 18,023      $ 9,565
Cost and expenses:
Cost of goods sold          9,713        3,305        22,382        9,313
Research and development    5,491        7,475        26,238        24,790
Selling, general and        16,495       28,137       88,501        90,898
administrative
                            31,699       38,917       137,121       125,001
Operating loss              (26,752)     (35,207)     (119,098)     (115,436)
Investment income, net      39           43           164           150
Interest expense on debt    (6,930)      (4,515)      (23,892)      (16,357)
Gain on extinguishment      —            —            21,800        —
of debt
Other income, net           5,609        1,090        2,714         2,828
Loss before income taxes    (28,034)     (38,589)     (118,312)     (128,815)
Income tax benefit          —            (7,733)      —             (26,788)
Net loss                  $ (28,034)   $ (30,856)   $ (118,312)   $ (102,027)
Loss per common share:
Basic and diluted         $ (0.39)     $ (0.44)     $ (1.67)      $ (1.46)
Weighted-average number
of common shares:
Basic and diluted           71,119       70,235       70,819        70,117



CONTACT:
Savient Pharmaceuticals, Inc.                     Burns McClellan
John P. Hamill                                    Caitlyn Murphy
Senior Vice President and Chief Financial Officer cmurphy@burnsmc.com
information@savient.com                           (212) 213-0006
(732) 418-9300

SOURCE Savient Pharmaceuticals, Inc.

Website: http://www.savient.com
 
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