Savient (SVNT) Rises 55% On Bad News

Shares in pharma firm Savient (SVNT) are up 55% to $9.13 on what would appear to be very bad news. The FDA issued a statement saying it has safety concerns about the company’s gout drug.

According to the agency, side effects of the drug Krystexxa include sudden death from heart attack and allergic reactions. The silver lining is that the treatment may actually be approved. The FDA commented that it does “does not dispute the efficacy” of the drug.

Reuters reports that“Savient, in a separate document also released on Friday, said the drug was important for patients who have no other options and that it “can be successfully managed with careful clinical monitoring.”

Apparently patient heart attacks are good for the company’s shareholders.

Douglas A. McIntyre