Savient Pharmaceuticals' CEO Discusses Q2 2012 Results - Earnings Call Transcript

Savient Pharmaceuticals, Inc. (SVNT)

Q2 2012 Earnings Call

August 08, 2012 09:00 a.m. ET


Louis Ferrari – President and Chief Executive Officer

Richard Crowley – EVP, Biopharmaceutical Operations

Philip Yachmetz – SVP, General Counsel

Kenneth Bahrt – SVP, Chief Medical Officer

David Gionco – Chief Accounting Officer


Eric Schmidt – Cowen and Company

Cory Kasimov – JP Morgan

Katherine Xu – William Blair

David Krempa – Morning Star

Tazeen Ahmad – Bank of America

Rahul Jasuja – Noble Financial

Carol Werther – Summer Street Research

Heather Behanna – JMP Securities



Good day ladies and gentlemen, and thank you for standing by. Welcome to the Savient Pharmaceuticals second quarter 2012 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 will 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 begin.

Philip Yachmetz

Thank you and good morning. Welcome to Savient Pharmaceuticals second quarter 2012 financial results conference call. This morning we issued a press release providing financial results and highlights for the second quarter of 2012. The press release is available on our website at

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 the status of our KRYSTEXXA and marketing efforts, and additional plans related there too, market demand and reimbursement for KRYSTEXXA, our review of the refractory chronic gout or RCG market size, our beliefs with respect to the ability to gain and maintain market acceptance of KRYSTEXXA by physicians, patients, healthcare payers and others in the medical community, our marketing authorization application or MAA pending before the European medicines agency and our intended pursuit of expanded clinical utility for KRYSTEXXA. No inference of overall success of 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 August 8, 2012 and our company’s filings with the Securities and Exchange Commission including without limitation, our Form 10-Q which will be filed on or before November 9, 2012. Each of these contains important factors that may cause actual results or events to differ materially from those described in the forward-looking statements.

Furthermore, the contents of this conference call contains time sensitive information that is accurate only as of the date of this live broadcast August 8, 2012. We undertake no obligation to revise or update our statements to reflect events or circumstances that occur after the date and time of this call.

Joining me on the call this morning with prepared remarks are Lou Ferrari, our President and Chief Executive Officer, Ken Bahrt, our Senior Vice President and Chief Medical Officer, and David Gionco, Group Vice President and Chief Accounting Officer.

At this time I would like to turn the call over to Lou Ferrari.

Louis Ferrari

Thank you, Philip, and thank you for joining us this morning. On today’s call, we will discuss our second quarter 2012 financial results and share some important steps we have taken this quarter to ensure the future success of KRYSTEXXA both in the US and globally.

As many of you know, I’ve been working with the board and our management team on executing our plans to position the company for future growth. I am pleased with our recent progress. For the sixth consecutive quarter we achieved sequential sales growth for KRYSTEXXA.

I believe the results achieved this quarter which include a 30% increase in KRYSTEXXA sales from the previous quarter illustrate that our strategy is taking hold. We’ve build the solid foundation for KRYSTEXXA and we are continuing to execute on our main objectives to drive sustainable results and build long term shareholder value through our targeted approach for growing new accounts and building upon existing accounts.

The success of our KPIP program. Our continued focus on communicating the benefits of KRYSTEXXA as a one of a kind treatment for the RCG population, and our successful execution of our clinical development plan to highlight significant clinical data and pursue publication opportunities.

We are similarly focused in Europe, where we continue to work with the European regulatory bodies to achieve approval in the EU and engage in an active process with potential partners to market prospects in the EU and rest of the world.

Now, I would like to go through the specifics of the results of the quarter.

In the second quarter, we continue to make steady progress in the commercialization of KRYSTEXXA and build on the momentum that we established at the end of the first quarter. During the second quarter, we achieved $4 million in net trade sales of KRYSTEXXA which represented a 30% growth compared to last quarter.

We also added 143 new accounts in the quarter, bringing the total number of accounts that have bought KRYSTEXXA to 677. Shortly after the quarter ended, we announced a companywide reorganization plan that will reduce our workforce by approximately 35% effective in early September of this year.

We have taken steps to right size our field sales organization to a team of 38 key account managers and three region business directors, all of whom are highly experienced with KRYSTEXXA and are now able to handle manage care and reimbursement increase.

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