Savient Pharmaceuticals, Inc. (BTGC) Announces New Strategic Direction To Focus On Product Development; Company To Focus Resources On Clinical Development Of Its Two Phase II Products, Prosaptide And Puricase
10/19/2005 5:09:00 PM
Savient Pharmaceuticals, Inc. (NASDAQ:SVNT) today announced that its Management has completed a thorough evaluation of the Company's assets and an in-depth review of the Company's business strategy. Based upon this evaluation, the Board has approved Management's recommendation to refine the Company's strategic business plan to reposition itself to focus on the full development of its pipeline products. By doing this, the Board and Management believe that the Company will be better situated to enhance market recognition of the inherent value of these assets for increased shareholder value.
In line with this new emphasis on product development, including the enhanced focus on the clinical development of its two Phase II products, prosaptide for peripheral neuropathic pain, and Puricase(R) for severe, refractory gout, Savient will concentrate on an active in-licensing program to access and develop novel compounds in clinical stage development.
As a result of these decisions, Management will now explore the strategic options for the divestiture of its operations in Israel, including its subsidiary, Bio-Technology General (Israel) Ltd. Management believes that this action should provide the incremental resources required to fund the advancement of its drug development programs. Savient has retained UBS Investment Bank to assist with exploring the strategic divestment options.
"This new direction allows us to streamline our operations, divest assets that are not consistent with our refined business objectives, and thereby provide greater resources to devote to our products in clinical development," said Christopher Clement, President and Chief Executive Officer of Savient. "We are very excited by our two Phase II drug candidates, each of which addresses a clear unmet medical need. In taking these steps," he added, "we are committed to a focused strategic plan that we believe will maximize the return on Savient's pharmaceutical assets."
The Company will communicate further information on these matters, including estimated financial outcomes, during its second quarter earnings and company update conference call scheduled for the first week of August and thereafter as developments warrant.
In addition to developing its pipeline products, Savient will continue to market Oxandrin(R) for involuntary weight loss and Delatestryl(R) for hypogonadism in the United States. As well, Savient's Leeds-based, U.K. subsidiary, Rosemont Pharmaceuticals, Inc., develops, manufactures and markets oral liquid pharmaceuticals, primarily for the U.K. market. Modification of the Rosemont facility is currently under way with a view to attaining FDA approval and the introduction of Rosemont's oral liquid products in the United States. Savient plans to submit its first FDA filing of an oral liquid product, Soltamox(TM) (oral liquid tamoxifen), later this year and anticipates the introduction of additional oral liquid products in the future.