Savient Surges On FDA Approval

Jefferies recently reported that contrary to it's expectation, the FDA approved Savient's

KRYSTEXXA on time, but with a black box warning. Jefferies continues to see limited commercial potential and supply issues for the drug. The current valuation already reflects a take-out premium so the risk/reward is viewed as unattractive. SVNT expects drug availability later this year and believes it's well advanced in its preparation for the U.S launch of KRYSTEXXA. Risks seen to the price target are lack of strategic transaction as well as commercial risks. Jefferies maintains it's Underperform rating on Savient though increases the price target to $8 from $6. Savient closed Tuesday at $14.76 See more real-time trading ideas