Savient Rises As Analyst Says Buyout Possible

NEW YORK (AP) — Shares of Savient Pharmaceuticals Inc. advanced Thursday after a JMP Securities analyst said the company could become a buyout target later this month.

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.

In afternoon trading, the stock rose 83 cents, or 6.1 percent, to $14.44. The stock has ranged from $2.80 to $22.36 over the past year.