Savient Pharmaceuticals, Inc.
) recently announced that Louis Ferrari has been entrusted the role
of President and Chief Executive Officer (CEO) by the company's
board of directors. Mr. Ferrari possesses over 30 years of
experience in the pharmaceutical industry.
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SAVIENT PHARM (SVNT): Free Stock Analysis
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He held the position of Executive Vice President, President North
American Commercial Operations at Savient and is integrally
involved in the rollout of Savient's key drug, Krystexxa, and
development of the company's growth strategies. Prior to joining
Savient in February 2011, Louis Ferrari was employed at
Johnson and Johnson
) as Vice President of oncology and nephrology, sales and
He will replace interim CEO, David Y. Norton. Both David Y. Norton
and Mr. Ferrari will continue to be members of Savient's board of
Meanwhile, the company also announced job cuts of approximately 35%
(effective from September 10, 2012) as part of a restructuring
initiative. Savient plans to restructure its field force. The
restructured field force will comprise 35 key account managers and
3 regional business directors.
The restructuring initiative, aimed at improving operating
efficiencies, is expected to yield $56 million in operating expense
savings annually by 2013 with annualized first quarter 2012
operating expenses as a base.
In 2012, the company expects to recognize operating expense savings
of approximately $6.5 million. These restructuring initiatives are
expected to cost approximately $4.7 million of which $3.6 million
will be incurred in 2012.
We currently have a Neutral recommendation on Savient. The stock
carries a Zacks #3 Rank (Hold rating) in the short run.