Thursday, April 28, 2011

Savient Pharma: Cheap Biotech Without FDA Approval Risk


Savient Pharma (SVNT) - a small cap biotech trading 50% below the 52 week high with an approved FDA drug with blockbuster potential - provides an ideal risk/reward scenario. The approved drug also has orphan status, giving it a 7 year marketing exclusivity.
Naturally, the stock wouldn't still fall into the small cap arena if everybody agreed on the blockbuster potential of Kyrstexxa. The drug is one of the first for gout in over 40 years and provides treatment of chronic gout in adult patients refractory to conventional therapy. It treats an previously untreatable disease, providing for a under-served patient base. This is why many analysts and investors are high on SVNT and the blockbuster potential of the drug.

Read the whole story at Seeking Alpha

1 comment:

Mark Holder said...

Unfortunately the execution risk hit the stock after the Q1 report. Disappointing but nothing about the story has changed. The drug is apparently acting as expected, but the timeline to get patients treatment is taking up to 12 weeks from the first doctor visit. Naturally that makes it difficult to book revenue when the drug just launched on 12/1/10.