Savient Pharmaceuticals (NASDAQ: SVNT) stock is surging on news that in two late-stage studies, its drug Puricase effectively treated patients with gout who had no success with other treatments. As I posted two weeks ago, this blockbuster drug has a potential to produce over $600 million in sales for Savient. Puricase, which treats gout, a painful inflammation of the joints caused by having too much uric acid built up in the blood, is a large and untapped market, as 3 million patients await their first new therapy in more than 30 years.
Savient plans to file a biologics licenses application with the Food and Drug Administration in 2008 based on the results from the trials. If the treatment gets regulatory approval, it will be the only treatment for unsuccessfully treated patients.
This is both great news for gout sufferers, who hopefully will be provided some well-deserved relief, as well as investors in Savient who look to profit over the long run.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer owns stock and is long SVNT as of 12/13/07.
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