Savient Pharmaceuticals Management Discusses Q3 2010 Results - Earnings Call Transcript

Savient Pharmaceuticals (

SVNT

)

Q3 2010 Earnings Call

November 5, 2010 9:00 a.m. ET

Executives

Philip Yachmetz - SVP & General Counsel

Paul Hamelin - President

David Gionco – Group Vice President and Chief Financial Officer

Analysts

Eric Smith – Cowen and Company

Colleen Richtar [ph] Collins Stewart

Kim Lee - Global Hunter Securities

Gene Mack – Soleil Securities

Cory Kasimov – JP Morgan

Joseph Schwartz – Leerink Swann

Liisa Bayko – JMP Securities

Katherine Xu – Wedbush Securities

Carol Werther – Summer Street Research

Presentation

Operator

Compare to:
Previous Statements by SVNT
» Savient Pharmaceuticals Management Discusses Q3 2010 Results - Earnings Call Transcript
» Savient Pharmaceuticals, Inc Q2 2010 Earnings Call Transcript
» Savient Pharmaceuticals, Inc. Q1 2010 Earnings Call Transcript
» Savient Pharmaceuticals, Inc. Q1 2009 Earnings Call Transcript

Welcome to the Savient Pharmaceuticals third quarter 2010 financial results conference call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session. As a reminder this conference may be recorded.

I would now like to introduce your host for today, Mr. Philip Yachmetz, Senior Vice President and General Counsel for Savient Pharmaceuticals. Sir, please go ahead.

Philip Yachmetz

Thank you. Good morning and welcome to Savient Pharmaceuticals third quarter 2010 financial results conference call. Last evening we issued a press release providing financial results and highlights of the third quarter of 2010. The press release is available on our website at

www.savient.com

.

Before today’s call, I would like to read our Safe Harbor statement. Comments made during this conference call will contain forward-looking statements that involve risks and uncertainties regarding the operations and future results of Savient Pharmaceuticals

In particular, we need to stress that when we discuss information regarding our preparations and plans to commercially launch KRYSTEXXA, and our preparations for regulatory submissions for KRYSTEXXA outside the United States, our work with our primary and potential secondary supply sources, our beliefs with respect to our ability to gain and maintain market acceptance of KRYSTEXXA by physicians, patients, healthcare payers and others in the medical community, and are continuing evaluation of strategical alternatives available to maximize shareholders value as well as related matters. No inference of the overall success with respect to these matters can be implied as they are subject to a number of risks and uncertainties.

We encourage you to review our press release dated November 4, 2010 and our company’s filings with the Securities and Exchange Commission including without limitation, our quarterly report on Form 10-Q which will be filed on or before November 9, 2010. And our Form 10-K which identifies important factors that may cause actual results or events to defer materially from those described in the forward-looking statements.

Furthermore, the content of this conference call contains time sensitive information that is accurate only as of the date of this live broadcast November 5, 2010. We undertake no obligation to revise or update our statements to reflect events or circumstances that occur after the date of this conference call.

Joining me on the call this morning is Paul Hamelin, our President and David Gionco, our Group Vice President and Chief Financial Officer.

However, before I turn the call over to Paul, I would like to take a moment to address a couple of matters.

As we previously announced, our recent strategic process, did not result in a sale of Savient at this time, and we are now focused on the commercial launch of KRYSTEXXA. As a result, we have been working very hard to refine our launch plans for KRYSTEXXA, including our anticipated cash expenditures over the coming months.

Based on our current plans and assumptions, we believe that our available cash resources will last approximately nine months. We believe that we will require additional financing and are actively considering our alternatives with respect to timing, structure, and size.

However, I would like to remind listeners that moving forward, we will have no further comments on either of these matters.

At this time, I would like to turn the call over to Paul Hamelin.

Paul Hamelin

Thank you Philip, and good morning everyone. Thank you for joining us. Today I’d like to discuss the key milestones that we’ve achieved during the third quarter of 2010 as well as further details regarding our priorities going forward. But before I go into those operational highlights, let me turn the call over to David Gionco, our Chief Financial Officer, who will review the financial results for the third quarter of 2010. David?

David Gionco

Thanks, Paul. Let’s review the financial results to the third quarter and nine month ended September 30, 2010 that we reported in last night’s press release. Since I will only be discussing highlights from our financial results, I refer you to our quarterly report on form 10-Q, when filed for more specifics and details.

We ended the third quarter of 2010 with $78.1 million in cash and short-term investments, a decrease of $10.9 million for the quarter. As of Tuesday, November 2, 2010, we have approximately $75.7 million in cash and short-term investments.

During the third quarter, investors exercised warrants to purchase shares of our common stock, and we received cash proceeds from these exercises of $850,000. These warrants were issued in connection with our April 2009, registered direct offering.

Subsequent to September 30, 2010, investors exercise all of the remaining outstanding warrants, to purchase shares of our common stock, through cash and cash exercises, as we received additional cash proceeds of $3.4 million.

For the third quarter of 2010, the company had a net loss of $59.4 million, inclusive of a non-cash valuation adjustment of $43.2 million related to warrants, or $0.89 per share on total revenues of $1 million compared with a net loss of 13.9 million or $0.23 per share on total revenues of $0.3 million for the same period in 2009.

Read the rest of this transcript for free on seekingalpha.com