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Savient Pharmaceuticals Reports Second Quarter 2013 Financial Results



    Savient Pharmaceuticals Reports Second Quarter 2013 Financial Results

PR Newswire

BRIDGEWATER, N.J., Aug. 14, 2013

BRIDGEWATER, N.J., Aug. 14, 2013 /PRNewswire/ -- Savient Pharmaceuticals, Inc.
(NASDAQ: SVNT) today reported financial results for the three and six-month
periods ended June 30, 2013.  Net sales for KRYSTEXXA^® were $6.1 million for
the second quarter of 2013, a 38% increase over the first quarter of 2013. 
For the three-month period ended June 30, 2013, the Company had a net loss of
$25.4 million or $0.35 per share, on total revenues of $6.7 million, compared
with a net loss of $16.4 million or $0.23 per share, on total revenues of $4.6
million for the same period in 2012.  The net loss for the first six months of
2013 was $49.9 million, or $0.69 per share, on total revenues of $11.4
million, compared with a net loss of $50.6 million, or $0.72 per share, on
total revenues of $8.2 million for the same period in 2012. Savient ended the
second quarter with approximately $51.5 million in cash, cash equivalents and
short-term investments, a decrease of $17.3 million for the quarter. 

Financial Results of Operations for the Three Months Ended June 30, 2013

Net revenues increased $2.1 million, or 44%, to $6.7 million for the
three-month period ended June 30, 2013, from $4.6 million for the three-month
period ended June 30, 2012, primarily driven by higher KRYSTEXXA net sales.

KRYSTEXXA net sales increased $2.1 million, or 52%, to $6.1 million for the
three-month period ended June 30, 2013, from $4.0 million for the three-month
period ended June 30, 2012. The increase in KRYSTEXXA net sales is
substantially due to the impact of our price increases for the product and to
a lesser extent an increase in year over year sales volume. Since the
beginning of 2012, we have increased the selling price of KRYSTEXXA by
approximately 134% from the original list price of $2,300 per vial to the
current list price of $5,390 per vial, effective May 17, 2013. We sold 2,058
vials and 1,883 vials of KRYSTEXXA during the three-month periods ended June
30, 2013 and 2012, respectively, an increase of 9% year over year. In
addition, we sold 1,624 vials of KRYSTEXXA during the three-month period ended
March 31, 2013.

Co-promotion revenue of $0.4 million for the three-month period ended June 30,
2013 reflects revenue from the sale of Kineret^® based on our agreement with
Sobi, which granted to us the right to co-promote the sale of Kineret in the
U.S. We began marketing and promoting Kineret on April 1, 2013.

Cost of goods sold decreased $4.7 million, or 70%, to $2.0 million for the
three-month period ended June 30, 2013, from $6.7 million for the three-month
period ended June 30, 2012. The decrease is primarily due to a $4.9 million
charge against operations for the three-month period ended June 30, 2012
related to in process and finished goods KRYSTEXXA inventory.  

Research and development expenses decreased $0.7 million, or 10%, to $6.0
million for the three-month period ended June 30, 2013, from $6.7 million for
the three-month period ended June 30, 2012. The decrease is primarily due to
lower expenses related to the timing of incurring post marketing commitment
costs for KRYSTEXXA in the U.S., partially offset by approximately $0.3
million in severance charges for the three-month period ended June 30, 2013.

Selling, general and administrative expenses decreased $9.5 million, or 35%,
to $17.8 million for the three-month period ended June 30, 2013, from $27.3
million for the three-month period ended June 30, 2012. The decrease in
expense is substantially due to lower marketing, promotion and compensation
costs, resulting from our July 2012 reorganization plan, partially offset by
approximately $4.9 million in severance charges and other reorganization
expenses for the three-month period ended June 30, 2013.  

Interest expense on our debt increased $1.6 million, or 29%, to $7.2 million
for the three-month period ended June 30, 2013, from $5.6 million for the
three-month period ended June 30, 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 June 30, 2013 reflects $2.7 million of coupon
interest expense and $4.5 million of non-cash interest expense. Interest
expense for the three-month period ended June 30, 2012, reflects $2.6 million
of coupon interest expense and $3.0 million of non-cash interest expense.

Other income, net decreased $2.5 million, or 72%, to $1.0 million for the
three-month period ended June 30, 2013, from $3.5 million for the three-month
period ended June 30, 2012. The decrease is primarily driven by the
year-over-year variance related to the change in the mark-to-market valuation
adjustment of our warrant liability.

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.

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 June 30, 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
Source: Savient Pharmaceuticals, Inc.

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

 

(Tables to Follow)

 

SAVIENT PHARMACEUTICALS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except per share data)
                                                   June 30,      December 31,

                                                    2013          2012
ASSETS
Current Assets:
      Cash and cash equivalents                    $ 38,343      $  50,332
      Short-term investments                         13,131         45,949
      Accounts receivable, net                       7,753          4,341
      Inventories, net                               1,575          4,325
      Prepaid expenses and other current assets      3,819          4,367
            Total current assets                     64,621         109,314
      Property and equipment, net                    1,804          2,050
      Deferred financing costs, net                  4,505          4,969
      Restricted cash and other assets               2,827          2,873
            Total assets                           $ 73,757      $  119,206
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
      Accounts payable                             $ 3,425       $  3,435
      Deferred revenues                              1,480          580
      Warrant liability                              1,438          2,935
      Accrued interest                               3,154          3,150
      Other current liabilities                      16,719         21,516
            Total current liabilities                26,216         31,616
      Convertible notes, net of discount of
$23,388 at June 30, 2013 and $25,354 at              99,053         97,087
December 31, 2012
      Senior secured notes, net of discount of
$38,670 at June 30, 2013 and $45,114 at              132,271        125,827
December 31, 2012
      Other liabilities                              2,839          2,973
Stockholders' Deficit:
                     Preferred stock—$.01 par
value 4,000,000 shares authorized; no shares         —              —
issued
                     Common stock—$.01 par value
150,000,000 shares authorized; 73,709,000 shares
issued and outstanding
                                                     737            731
                        at June 30, 2013 and
73,083,000 shares issued and outstanding at
December 31, 2012
                     Additional paid-in-capital      399,340        397,191
                     Accumulated deficit             (585,793)      (535,915)
                     Accumulated other               (906)          (304)
comprehensive loss
                              Total stockholders'    (186,622)      (138,297)
deficit
                                          Total    $ 73,757      $  119,206
liabilities and stockholders' deficit

 

 

SAVIENT PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
                           Three Months Ended        Six Months Ended

                            June 30,                  June 30,
                           2013         2012         2013         2012
Revenues:
         Product sales,    $ 6,280      $ 4,626      $ 10,972     $ 8,160
net
         Co-promotion        382          —            382          —
revenue
Total Revenues               6,662        4,626        11,354       8,160
Cost and expenses:
Cost of goods sold           2,038        6,727        5,588        8,447
Research and development     6,026        6,705        12,160       13,951
Selling, general and         17,807       27,327       32,963       51,579
administrative
                             25,871       40,759       50,711       73,977
Operating loss               (19,209)     (36,133)     (39,357)     (65,817)
Investment income, net       20           41           53           84
Interest expense on debt     (7,237)      (5,600)      (14,316)     (10,157)
Gain on extinguishment of    —            21,800       —            21,800
debt
Other income, net            994          3,513        1,500        3,513
Loss before income taxes     (25,432)     (16,379)     (52,120)     (50,577)
Income tax benefit           —            —            2,242        —
Net loss                   $ (25,432)   $ (16,379)   $ (49,878)   $ (50,577)
Loss per common share:
Basic and diluted          $ (0.35)     $ (0.23)     $ (0.69)     $ (0.72)
Weighted-average number of
common shares:
Basic and diluted            72,141       70,721       71,905       70,596

 

SOURCE Savient Pharmaceuticals, Inc.

Website: http://www.savient.com
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