Savient Pharmaceuticals (Nasdaq:SVNT) today announced that it is considering selling off its Israeli business operations, including its subsidiary Bio-Technology General (Israel) Ltd.
Early in the fourth quarter of 2004, a confidential information memorandum is expected to be made available to prospective buyers. If a satisfactory offer is received and approved by the company's board of directors, management expects that the transaction could complete in the first half of 2005.
"We are very pleased to be moving forward with the execution of our previously announced plans to reposition the company to focus on the development of our product pipeline. A successful divestment of our Israeli business would streamline our operations and provide the financial resources to advance our two primary drug candidates currently in Phase II clinical development," said Savient president and CEO Christopher Clement.
"We are acting upon our stated plan by taking the steps to best position the company to focus on its development pipeline, build a new senior management team, eliminate non-strategic spending and redirect our resources to the areas of highest potential return. As progress is made on each of these fronts, we will keep our stakeholders advised."
The potential sale is expected to include existing biopharmaceutical product licensing arrangements outside of Israel, and products currently manufactured in Israel.
Savient stated there are several developments anticipated in the near-term related to its human growth hormone and sodium hyaluronate products that are expected to enhance the value of the company's assets to be included in the confidential information memorandum. The company is proceeding with its plans to bring its FDA-approved recombinant human growth hormone to market in the US late in the fourth quarter of this year. The product is licensed to and will be marketed by Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA) under the trade name Tev-Tropin. The US pediatric market for recombinant human growth hormones is approximately $500 million and currently growing at an annual rate of 12%.
The company is also seeking marketing partners for its sodium hyaluronate (HA) injectable drug for the treatment of pain associated with osteoarthritis of the knee. The HA drug is called Nuflexxa in the US market, where it is pending final FDA approval, and Euflexxa in Europe where it has already been approved. Savient stated that the US market alone for this indication is about $350 million and growing at a double-digit rate.
In addition, the company is seeking a new marketing partner in the US for BioLon, its HA-based, high-viscosity gel used in ophthalmic surgery procedures such as cataract removal and intraocular lens implantation. The company stated that the global market for this niche product is about $130 million with only minimal growth expected.
Published by Globes [online] - www.globes.co.il - on Thursday, September 23, 2004