Savient Pharmaceuticals (NASDAQ:SVNT) Must Wait for KRYSTEXXA Benefits

Savient Pharmaceuticals (NASDAQ:SVNT) has shipped KRYSTEXXA to specialty distributors starting on December 1, but won't enjoy the benefits of the launch until sometime in the middle of January 2011.

Global Hunter Securities, which maintains a "Buy" rating on Savient, considers the company highly undervalued.

"SVNT announced the wholesale acquisition cost (WAC) of KRYSTEXXA of $2,300/8 mg vial. In addition, the company commenced shipment of drug to specialty distributors. Although KRYSTEXXA will be available by prescription on December 1st, we do not foresee significant KRYSTEXXA sales until the sales representatives are on board in mid-January. We continue to believe KRYSTEXXA could become a best-in-class therapy with its differentiated profile and represent a new treatment paradigm for this unmet need to warrant a $500 million peak potential by 2016," said Global Hunter.

Savient closed Wednesday at $12.08, gaining $0.28, or 2.37 percent. Global raised their price target on them from $15 to $19.