Oppenheimer Downgrades Savient Pharmaceuticals

Oppenheimer is downgrading shares of Savient Pharmaceuticals

to Perform from Outperform. The downgrade is based exclusively on valuation after SVNT's 35% one-day price increase which pushed the shares past the former price target of $17. Oppenheimer also believes additional upside may be possible on an acquisition offer though it is cautious due to potential volatility in shares surrounding the timing and amount of the potential acquisition offer. While Savient appears ready to launch KRYSTEXXA by year end 2010, Oppenheimer believes the drug will be launched in the hands of an acquirer. A final decision on pricing upon KRYSTEXXA launch is expected in 4Q2010. There may be additional upside possible, but near-term volatility is likely. Oppenheimer believes Savient's negotiating leverage may be reduced with the announcement of the intent to sell the company. Savient closed Wednesday at $19.98 and is currently trading down almost 2%