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Savient Pharma rises high (NASDAQ:SVNT)

By Sandra Kitchen on 10/12/2009 – 8:30 am PDTLeave a Comment

On a late Friday afternoon, shares of Savient Pharmaceuticals bounced back as analysts for Oppenheimer and Co. raised his views on Savient Pharmaceuticals and its new chronic gout drug candidate Krystexxa. The analysts have stated that he is optimistic that Savient Pharmaceuticals will be able to resolve the manufacturing issues related with the commercial use of Krystexxa. Currently, Savient Pharmaceuticals have Oxandrin as their only commercially successful drug in the United States market which is a synthetic testosterone derivative that helps to promote weight gain after weight loss following extensive surgery, chronic infections and severe trauma.

However, Savient Pharmaceuticals’ new drug Krystexxa is a biologic drug that is used for the treatment of those patients who are unable to take conventional gout treatments, or for those who are not responding to traditional gout treatments. Technically, Krystexxa is a PEGylated recombinant mammalian urate oxidase. It works by breaking down the uric acid, a substance that causes gout in human body. Krystexxa is administered intravenously every two weeks and helps in the reduction of gout tophi, tender or swollen joints, and reduction of flashes as well. However, there are adverse side-effects to Krystexxa that cannot be overlooked and it is still under the review by the Food and Drug Administration panel on the risk-versus-benefit basis.

In August 2009, Savient Pharmaceuticals had announced that they have received a complete response letter from the FDA stating that they cannot approve Krystexxa at the moment considering the side-effects it has. Also, the FDA stated concerns over the manufacturing process for the commercial use of Krystexxa. Savient Pharmaceuticals will work with FDA and resubmit their reports perhaps in early 2010.

Shares of Savient Pharmaceuticals went up 7.4 percent in the afternoon trading soon after the stocks were upgraded by the analysts.

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