Savient Pharma Recovers After Analyst Upgrade

NEW YORK (AP) — Shares of Savient Pharmaceuticals Inc. rebounded Friday as an analyst for Oppenheimer and Co. raised his views on Savient and its chronic gout drug candidate Krystexxa.

John Newman upgraded the stock to "Outperform" from "Perform," saying he has become more optimistic that Savient will resolve manufacturing issues that have delayed a regulatory decision on Krystexxa. He also said he expects the drug to be approved in 2010.

Savient stock added 98 cents, or 7.4 percent, to $14.27 in afternoon trading. Shares of the East Brunswick, N.J., company fell 11.8 percent Thursday after Savient said it planned to sell up to 4.6 million shares of stock to raise money. Savient expanded that offering to as many as 4.9 million shares Friday.

Newman said he believes Savient will complete a new application with the Food and Drug Administration in the first quarter of 2010, and he expects the FDA to approve Krystexxa in the third quarter of the year. He set a price target of $17 per share for the stock, which would represent an annual high.

Newman said the stock price is more attractive after Thursday's slide.