Savient says cash is enough to operate through first half of 2014

By Lisa Kerner

Charlotte, N.C., March 19 - Savient Pharmaceuticals, Inc. believes its current cash and short-term investments will be "sufficient to fund the anticipated levels of operations into the second quarter of 2014," senior vice president and chief financial officer John Hamill said during the company's earnings conference call on Tuesday.

The company ended the year with $96.3 million of cash and short-term investments, compared with $116.2 million in the prior quarter, a decrease of $19.9 million, according to Hamill.

The company's debt at year's end included about $97 million of convertible notes and about $126 million of senior secured notes, according to Savient's fourth-quarter and full-year 2012 earnings news release.

Interest expense on Savient's debt was "essentially flat at $6.9 million" for the three months ended Dec. 31 compared to the prior-year period, according to Hamill.

"Interest expense for the year ended December 31, 2012, increased $7.5 million, or 46%, to $23.9 million from $16.4 million in 2011," Hamill said.

"This higher interest expense resulted from our debt exchange financed transaction in May 2012."

Financial highlights

Savient reported a net loss for the fourth quarter of $28 million, or $0.39 per share, on total revenues of $4.9 million, compared with a net loss of $30.9 million, or $0.44 per share, on total revenues of $3.7 million for the same period in 2011.

The net loss for the year was $118.3 million, or $1.67 per share, on total revenues of $18 million, compared with a net loss of $102 million, or $1.46 per share, on total revenues of $9.6 million for 2011.

Savient's net loss for 2012 includes a $21.8 million, or $0.31 per share, gain on the extinguishment of debt.

Net sales of Savient's Krystexxa product were up 3% for the quarter at $4.7 million. The company increased the price of Krystexxa by 30% effective Jan. 16. Last year, Savient raised the selling price by about 29% from the original list price.

Savient is a pharmaceutical company located in East Brunswick, N.J.

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