Savient Pharmaceuticals, Inc. (SVNT) To Sell Global Biologics Manufacturing Business For $80 Million To Ferring Holding SA; Major Milestone Achieved In Savient's New Strategic Direction
10/19/2005 5:13:06 PM
EAST BRUNSWICK, N.J.--(BUSINESS WIRE)--March 23, 2005--Savient Pharmaceuticals, Inc. (NASDAQ:SVNT), today announced that it has signed a definitive agreement to sell its global biologics manufacturing business for $80 million cash to Ferring B.V. and Ferring International Centre SA, subsidiaries of Ferring Holding SA, a privately owned specialty biopharmaceutical company headquartered in Lausanne, Switzerland. Savient will receive the $80 million in three installments: $55 million at closing, $15 million at the first anniversary of closing and $10 million at the second anniversary of closing. Savient estimates the proceeds from this transaction over the next two years to be approximately $70 million after transaction-related expenses, taxes and the extinguishment of bank debt, assuming the transaction closes in the next six months. The closing of the transaction, which has been approved by the boards of directors of both companies, is subject to a number of conditions, including certain governmental and regulatory approvals. Savient expects that the transaction will close by the end of the first half of 2005.
The sale is part of Savient's new strategic direction announced in July 2004 to reposition Savient to focus on the full development of its pipeline products. As part of this new strategic direction, Savient announced its intention to explore the sale of its global biologics manufacturing business and to use the proceeds from the divestiture to fund the advancement of its lead drug candidate Puricase for the treatment of severe, refractory gout which is nearing completion of Phase 2 clinical trials in the United States, and pursue business development opportunities to in-license novel compounds in clinical stage development as well as marketed products complimentary to this strategy.
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