Healthcare Industry News: Savient Pharmaceuticals
News Release - January 9, 2006
Savient Pharmaceuticals Closes Sale of Delatestryl(R) Product to Indevus PharmaceuticalsEAST BRUNSWICK, N.J.--(HSMN NewsFeed)--Jan. 9, 2006--Savient Pharmaceuticals, Inc. (NASDAQ:SVNTE ) an emerging specialty pharmaceutical company engaged in developing, manufacturing and marketing pharmaceutical products that address unmet medical needs in niche and broader markets, today announced the closing of the sale of its DelatestrylŽ product to Indevus Pharmaceuticals, Inc. for $5 million plus compensation for existing product inventory as well as potential future royalty payments.
Savient received its first payment of $5.64 million today, including $0.64 million representing the first of three equal payments for existing finished product inventory. The remaining product inventory payments will be made to Savient on the first and second anniversaries of the closing date. Additionally, Savient shall receive future royalty payments based upon net sales of the product for the three years following the closing date on an escalating scale. The royalty rate will be 5% on the first $5 million of cumulative net sales, increasing to 10% on cumulative net sales between $5 million and $10 million, and will rise to 25% on cumulative net sales above $10 million.
"The closing of this transaction marks another step in the execution of our strategy to concentrate our efforts going forward on the development of our lead product candidate PuricaseŽ (PEG-uricase), which will commence its phase 3 clinical trials early this year, and focus on building our specialty pharmaceutical presence in rheumatology," said Christopher Clement, Savient's President and Chief Executive Officer.
About Savient Pharmaceuticals, Inc.
Savient Pharmaceuticals, Inc., an emerging specialty pharmaceuticals company, is engaged in developing, manufacturing, and marketing pharmaceutical products that address unmet medical needs in both niche and broader markets. The Company's lead product development candidate, PuricaseŽ, for the treatment of refractory gout has reported positive Phase 1 and 2 clinical data. Savient's experienced management team is committed to advancing its pipeline and expanding its product portfolio by in-licensing late stage compounds and exploring co-promotion and co-development opportunities that fit the Company's expertise in specialty pharmaceuticals and initial focus in rheumatology. Savient markets its product OxandrinŽ (oxandrolone, USP) in the United States. The Company's subsidiary, Rosemont Pharmaceuticals Limited, develops, manufactures, and markets through its own sales force oral liquid formulations of prescription products for the UK pharmaceutical market. Rosemont's product portfolio includes over 90 liquid formulations primarily targeting the geriatric population. Savient's product MircetteŽ, an oral contraceptive, is marketed by its licensee, Duramed Pharmaceuticals, Inc. Puricase is a registered trademark of Mountain View Pharmaceuticals, Inc. Savient's news releases and other information are available on the Company's website at www.savientpharma.com.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this report regarding the Company's strategy, expected future financial position, discovery and development of products, strategic alliances, competitive position, plans and objectives of management are forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "will" and other similar expressions help identify forward-looking statements, although not all forward-looking statements contain these identifying words. In particular, the statements regarding the future royalty stream from the net sales of Delatestryl by Indevus, the continued implementation of the Company's strategic plan, the development of the Company's pipeline and the commencement of Phase III clinical trials for Puricase are forward-looking statements. These forward-looking statements involve substantial risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company's business and the biopharmaceutical and specialty pharmaceutical industries in which the Company operates. Such risks and uncertainties include, but are not limited to, delay or failure in developing Prosaptide, Puricase and other product candidates; difficulties of expanding the Company's product portfolio through in-licensing; introduction of generic competition for Oxandrin; fluctuations in buying patterns of wholesalers; potential future returns of Oxandrin or other products; our continuing to incur substantial net losses for the foreseeable future; difficulties in obtaining financing; potential development of alternative technologies or more effective products by competitors; reliance on third-parties to manufacture, market and distribute many of the Company's products; economic, political and other risks associated with foreign operations; risks of maintaining protection for the Company's intellectual property; risks of an adverse determination in on-going or future intellectual property litigation; and risks associated with stringent government regulation of the biopharmaceutical and specialty pharmaceutical industries. The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the Company's forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes. The Company's forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments that the Company may make. The Company does not assume any obligation to update any forward-looking statements.
Source: Savient Pharmaceuticals
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