It does not require a genius to know that Savient Pharmaceuticals’ gout drug Krystexxa is indispensable to patients who are not helped by all existing current gout treatments. It is no secret that the firm’s study, presentation of data and tackling of all concerns were extremely scientific, logical and trustworthy.
Savient has proven to be highly scientific. It is innovative and will bring to the medical community what it really expects from the biotechnology sector considered the executive branch of science, i.e., scientific and industrial power that turns scientific discoveries into breakthrough therapeutic molecules that fulfill unmet needs
Gout patients that conventional gout treatments do not help, will have a new drug called Krystexxa. Indeed, Savient’s drug will save them from their pain and misery. Those sufferers are numerous, estimated to be over 100,000 patients, a number that is increasing as the disease affects almost all age groups. They suffer excruciating pain, joint destruction, kidney stones and, in some cases kidney failure, in addition to other cardiovascular associated diseases that require special treatments.
Gout patients can live a normal life when treatments work on them. That’s why Krystexxa represents the hope for those patients who have no help and until yesterday, had no hope.
With regard to the firm’s stock, investors must know that the committee recommendation of approval has not really rallied the stock from $6 to over $12 as some are claiming. Such a great news was not even capable of recuperating the stock's losses incurred in one day, when unfair and wrong negative speculations on the drug succeeded in knocked its price down by over 70%. Yes, in one day, October 25, 2008, a sell off in the stock sank it from $11.34 to $3.7. Needless to say that the stock one month before that date was trading at over $19.
So, yesterday celebration has not even covered the losses brought up by fear perpetrated by those who are genius at it. We do believe though, that Krystexxa will become a blockbuster, generating revenues that would exceed the best products for inflammation, pain and life threatening conditions.
If after yesterday’s excellent news the stock would reach $20 (trading now at less than $13), it would have gained only $0.06 over its price on September 23, 2008, i.e., $19.94, before the hype made it tumble. SVNT represents a unique investment opportunity.
Disclosure: No positions