Savient Pharmaceuticals Reports First Quarter 2013 Financial Results

     Savient Pharmaceuticals Reports First Quarter 2013 Financial Results

PR Newswire

BRIDGEWATER, N.J., May 15, 2013

BRIDGEWATER, N.J., May 15, 2013 /PRNewswire/ --Savient Pharmaceuticals, Inc.
(NASDAQ: SVNT) today reported financial results for the three months ended
March 31, 2013. Net sales of KRYSTEXXA^®(pegloticase) were $4.4 million for
the first quarter of 2013, a 6% decrease from the fourth quarter of 2012 and a
43% increase over the first quarter of 2012. For the three-month period ended
March 31, 2013, the Company had a net loss of $24.4 million or $0.34 per
share, on total revenues of $4.7 million, compared with a net loss of $34.2
million or $0.49 per share, on total revenues of $3.5 million during the same
period in 2012. Savient ended the quarter with approximately $68.8 million in
cash and short-term investments as compared to $96.3 million in cash and
short-term investments as of the prior quarter.

Financial Results of Operations for the Three Months Ended March 31, 2013

Net revenues of the Company increased $1.2 million, or 33%, to $4.7 million
for the three-month period ended March31, 2013, from $3.5 million for the
three-month period ended March31, 2012, primarily driven by the impact of our
price increases on KRYSTEXXA. Since the beginning of 2012, we have increased
the selling price of KRYSTEXXA by 67% to $3,850 per vial, effective
January16, 2013.

Cost of goods sold increased $1.9 million, or 106%, to $3.6 million for the
three-month period ended March31, 2013, from $1.7 million for the three-month
period ended March31, 2012. The increase is primarily due to a $2.1 million
charge to reserve for KRYSTEXXA finished goods and raw material inventory.

Research and development expenses decreased $1.1 million, or 15%, to $6.1
million for the three-month period ended March31, 2013, from $7.2 million for
the three-month period ended March31, 2012. The decrease is primarily due to
lower expenses related to the timing of our U.S. post marketing commitments
for KRYSTEXXA coupled with lower compensation costs due to reduced headcount,
resulting from our July 2012 reorganization plan.

Selling, general and administrative expenses decreased $9.1 million, or 38%,
to $15.2 million for the three-month period ended March31, 2013, from $24.3
million for the three-month period ended March31, 2012. The decrease in
expense is primarily due to lower marketing, promotion and compensation costs
resulting from our July 2012 reorganization plan.

Interest expense on our debt increased $2.5 million, or 55%, to $7.1 million
for the three-month period ended March31, 2013, from $4.6 million for the
three-month period ended March31, 2012, as a result of additional interest
due on our 2019 Notes, which were issued on May 9, 2012. Interest expense for
the three-month period ended March31, 2013, primarily reflects $2.7 million
of cash interest expense and $4.4 million of non-cash interest expense.

Other income, net of $0.5 million for the three-month period ended March31,
2013, reflects a non-cash gain of $0.7 million related to the mark-to-market
valuation adjustment of our warrant liability.

For the three-month period ended March31, 2013, we recognized a $2.2 million
state income tax benefit as a result of proceeds from the sale of $2.4 million
of New Jersey net operating losses through the Technology Business Certificate
Transfer Program, sponsored by the New Jersey Economic Development Authority.

For additional information relating to the Company, refer to our Quarterly
Report on Form 10-Q for the quarter ended March 31, 2013, and other filings
made with the Securities and Exchange Commission.

ABOUTSAVIENT 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 fromDuke University("Duke") andMountain View
Pharmaceuticals, Inc.("MVP").Dukedeveloped the recombinant uricase enzyme
and MVP developed the PEGylation technology used in the manufacture of
KRYSTEXXA. MVP andDukehave 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 atwww.savient.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this press release may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. All statements contained in this press release that are not
statements of historical fact should be considered forward-looking statements.
We often use words such as "anticipate," "estimate," "expect," "project,"
"intend," "plan," "believe," "may," "predict," "will," "would," "could,"
"should," "target" and similar expressions to identify forward-looking
statements. Actual results or events could differ materially from those
indicated in forward-looking statements as a result of risks and
uncertainties. For a discussion of some of the risks and important factors
that we believe could cause actual results or events to differ from the
forward-looking statements that we make, see the sections entitled "Risk
Factors" and "Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our Quarterly Report on Form 10-Q for the quarter
ended March 31, 2013. In addition, new risks and uncertainties emerge from
time to time, and it is not possible for the Company to predict or assess the
impact of every factor that may cause its actual results or events to differ
from those contained in any forward-looking statements. Accordingly, you
should not place undue reliance on any forward-looking statements contained in
this press release. Any forward-looking statements speak only as of the date
of this press release. We undertake no obligation to publicly update
forward-looking statements, whether as a result of new information, future
events or otherwise.

SVNT-I



(Tables to Follow)



SAVIENT PHARMACEUTICALS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share data)
                                                   March31,     December31,

                                                   2013         2012
ASSETS
Current Assets:
Cash and cash equivalents                          $ 36,141      $  50,332
Short-term investments                               32,648         45,949
Accounts receivable, net                             3,824          4,341
Inventories, net                                     2,381          4,325
Prepaid expenses and other current assets            5,510          4,367
Total current assets                                 80,504         109,314
Property and equipment, net                          1,916          2,050
Deferred financing costs, net                        4,740          4,969
Restricted cash and other assets                     2,898          2,873
Total assets                                       $ 90,058      $  119,206
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable                                   $ 2,509       $  3,435
Deferred revenues                                    299            580
Warrant liability                                    2,190          2,935
Accrued interest                                     2,978          3,150
Other current liabilities                            14,115         21,516
Total current liabilities                            22,091         31,616
Convertible notes, net of discount of $24,383 at
March31, 2013                                       98,058         97,087
 and $25,354 at December31, 2012
Senior secured notes, net of discount of $41,955
at March31, 2013                                    128,986        125,827
 and $45,114 at December 31, 2012
Other liabilities                                    2,908          2,973
Stockholders' Deficit:
Preferred stock—$.01 par value 4,000,000 shares      —              —
authorized; no shares issued
Common stock—$.01 par value 150,000,000 shares
authorized; 73,871,000 shares
 issued and outstanding                739            731
atMarch31, 2013 and 73,083,000 shares issued
and
 outstanding at December31, 2012
Additional paid-in-capital                           398,282        397,191
Accumulated deficit                                  (560,361)      (535,915)
Accumulated other comprehensive loss                 (645)          (304)
Total stockholders' deficit                          (161,985)      (138,297)
Total liabilities and stockholders' deficit        $ 90,058      $  119,206





SAVIENT PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
                                                      ThreeMonthsEnded

                                                      March 31,
                                                      2013         2012
Revenues:
Product sales, net                                    $ 4,692      $ 3,534
Cost and expenses:
Cost of goods sold                                      3,550        1,720
Research and development                                6,134        7,246
Selling, general and administrative                     15,156       24,252
                                                        24,840       33,218
Operating loss                                          (20,148)     (29,684)
Investment income, net                                  33           43
Interest expense on debt                                (7,079)      (4,557)
Other income, net                                       506          —
Loss before income taxes                                (26,688)     (34,198)
Income tax benefit                                      2,242        —
Net loss                                              $ (24,446)   $ (34,198)
Loss per common share:
Basic and diluted                                     $ (0.34)     $ (0.49)
Weighted-average number of common and common
equivalent shares:
Basic and diluted                                       71,667       70,470





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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