Savient: Recommending A Switch Into Discovery Laboraratories (SVNT, $2.31)
I have decided to go the sidelines on Savient (current price of $2.31) and I am recommending a switch into Discovery Laboratories (current price of $3.05). The critical issue with Savient is when a significant inflection point for Krystexxa sales might occur. It appears that based on audit data that sales are growing quarter over quarter, but not at the rate that is necessary in my opinion to continue recommending purchase. I am also concerned that the company may contemplate a financing to bolster the balance sheet and this might put pressure on the stock. I am not abandoning the company as I believe that Krystexxa has a meaningful role to play in refractory gout. I just want to step aside until the situation show signs of improving.
For more information on Discovery Laboratories, please refer to the Company Reports section SmithOnStocks.com.
Disclosure: I intend to switch my stock position in Savient into Discovery Laboaratories 48 hours or later after publishing this report.
Tagged as Savient Pharmaceuticals + Categorized as Company Reports