We're not a big fan when stocks jump b/c of some random analyst talking about a buyout. It typically doesn't come to pass and leaves us wondering if the analyst just used the media to get her 'clients' out of the stock. it's also troubling that Savient Pharma (OTC:SVNT) had a huge spike on Tuesday when the market crashed. It ultimately traded flat, but somebody wanted the stock pretty bad and now we get hints of the culprit.
Regardless SVNT is a favorite of ours and we can't imagine it selling for less then $20 considering they have a FDA approvable drug to serve a market underserved for decades. Only needing to fix a manufacturing hiccup shouldn't keep partners away. Its also intriguing all she found out about the meeting date.
- Analyst Liisa Bayko said Savient confirmed it will meet with the Food and Drug Administration in a few weeks to discuss Krystexxa, which is intended to treat chronic gout. In early August, the FDA said it could not approve Krystexxa without more information about the manufacturing process and additional safety data.
- Bayko said the meeting should remove some of the risk around Savient's stock, as it will be more clear what the FDA wants Savient to do to gain approval.
- Bayko recommended buying the stock, and said the East Brunswick, N.J., company could fetch a takeout price of at least $20 per share.