Boston, MA 10/16/2013 (wallstreetpr) –
Savient Pharmaceuticals Inc (NASDAQ:SVNT), a biotech firm of the United States and the developer of a treatment for gout, filed for bankruptcy protection (Chapter 11) on Monday in a Delaware court, and it said that it has intended to sell most of its assets at about $55 million to Sloan Holdings CV. The company said in a statement that the agreement with a unit of United States WorldMeds LLC, Sloan, would serve as a “stalking horse” bid in the auction of assets of Savient, which would take place under the supervision of court. A stalking horse bid is the one that serves as the minimum offer for a business.
According to a filing today, Savient had $74 million in assets and $260 million in debt as of June 30. An agreement with a unit of Louisville, Kentucky-based WorldMeds makes Sloan acquire most of Savient, including Krystexxa, the gout drug. This drug maker, who was under pressure from its largest creditor to liquidate, told that the company would keep Krystexxa commercially available in the United States. Chronic gout in adults is treated by Krystexxa for those who do not respond to conventional therapy. Since its launch in September 2010, it has had disappointing sales.
New Jersey-based Savient, Bridgewater, said that Sloan’s offer sets the floor for the auction. According to a court filing, the largest shareholder of the company is Palo Alto Investors LLC. It owns 15% of the common stock of Savient, which is followed by Franklin Templeton, which owns 8%, and Wellington Management Corporation, which owns 7%.
The auction would require companies to submit binding offers and Savient Pharmaceuticals said that the company sees the potential sale close by the end of the year 2013. The Chairman of the Board of Savient, Stephen O. Jaeger, said that the management team has conducted an assessment of all strategic options and believes that the process represents the best solution for Savient.
