UPDATE: Bank of America Cuts PO to $1 on Savient Pharmaceuticals
Bank of America lowers its price target on Underperform-rated Savient Pharmaceuticals (NASDAQ: SVNT) by 50 percent to $1 per share on lower Krystexxa forecast.
Bank of America says, "We reiterate Underperform and lower our PO from $2 to $1, driven by lower intermediate-term sales growth expectations for SVNT's refractory gout drug Krystexxa. We are revising 12/13E EPS from ($1.37)/$0.03/$ to ($1.27)/($0.50). Our recent survey of 75 rheumatologists indicated nearly a doubling in physician use over the next year (68% up from 28% in 2011), but that the median number of patients per physician would be unchanged at ~2. We have lowered our 2012 Krystexxa sales estimate from $44mn to $37mn and see further downside risk from high discontinuation rates."
SVNT closed at $2.10 a share on Monday.
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