Savient Pharmaceuticals to Sell Global Biologics Manufacturing Busines

    Pharmaceutical Writers/Business Editors

    EAST BRUNSWICK, N.J.--(BUSINESS WIRE)--March 23, 2005--Savient Pharmaceuticals, Inc. (NASDAQ:SVNT), today announced that it has signed a definitive agreement to sell its global biologics manufacturing business for $80 million cash to Ferring B.V. and Ferring International Centre SA, subsidiaries of Ferring Holding SA, a privately owned specialty biopharmaceutical company headquartered in Lausanne, Switzerland. Savient will receive the $80 million in three installments: $55 million at closing, $15 million at the first anniversary of closing and $10 million at the second anniversary of closing. Savient estimates the proceeds from this transaction over the next two years to be approximately $70 million after transaction-related expenses, taxes and the extinguishment of bank debt, assuming the transaction closes in the next six months. The closing of the transaction, which has been approved by the boards of directors of both companies, is subject to a number of conditions, including certain governmental and regulatory approvals. Savient expects that the transaction will close by the end of the first half of 2005.
    The sale is part of Savient's new strategic direction announced in July 2004 to reposition Savient to focus on the full development of its pipeline products. As part of this new strategic direction, Savient announced its intention to explore the sale of its global biologics manufacturing business and to use the proceeds from the divestiture to fund the advancement of its lead drug candidate Puricase for the treatment of severe, refractory gout which is nearing completion of Phase 2 clinical trials in the United States, and pursue business development opportunities to in-license novel compounds in clinical stage development as well as marketed products complimentary to this strategy.
    Christopher Clement, Chief Executive Officer and President, stated, "The signing of this agreement represents a major milestone for Savient and aligns well with our new strategic focus as an emerging specialty pharmaceutical company. Most importantly, the transaction provides us with the capital to drive the advancement of Puricase into Phase 3 clinical trials and to pursue licensing or acquisition opportunities of novel compounds in clinical development as well as marketed products that satisfy the unmet medical needs of the rheumatology specialist, our therapeutic area of initial focus."
    Savient's global biologics manufacturing business features a diverse portfolio of seven products that include Bio-Tropin(TM) human growth hormone (marketed as TevTropin(TM) in the United States), Nuflexxa(R) hyaluronic acid for amelioration of knee pain due to osteoarthritis (to be marketed outside the United States under the tradename Euflexxa(TM)), BioLon(R) hyaluronic acid for use in surgery, Bio-Hep-B(TM) recombinant hepatitis B vaccine, insulin, Fibrimage(R) radiopharmaceutical product for diagnosis of deep vein thrombosis and pulmonary embolism, and a development stage generic biologic product.
    Savient and Ferring have also agreed to enter a co-promotion agreement for Nuflexxa in the United States, contingent upon the completion of the sale of the global biologics manufacturing business.
    Christopher Clement, President and Chief Executive Officer, will host a conference call/live webcast to review this transaction in detail today, March 23, 2005 at 11:00 a.m. EST.
    The live webcast can be accessed from the investor relations page of Savient's website at www.savientpharma.com and will be archived through April 23, 2005.
    In addition, an audio replay will be available until April 6, 2005. The replay numbers are (877) 660-6853 for domestic callers and (201) 612-7415 for international callers. The replay Conference ID Number is 144917.

    About Savient Pharmaceuticals, Inc.

    Savient Pharmaceuticals, Inc., an emerging specialty pharmaceuticals company, is engaged in developing, manufacturing, and marketing pharmaceutical products that address unmet medical needs in both niche and wider markets. Products marketed by Savient in the United States are Oxandrin(R) (oxandrolone, USP) and Delatestryl(R) (testosterone enanthate). The Company's subsidiary, Rosemont Pharmaceuticals Limited, develops, manufactures, and markets through its own sales force oral liquid formulations of prescription products for the UK pharmaceutical market. Savient's product Mircette(R), an oral contraceptive, is marketed by its licensee, Organon, Inc. Savient's news releases and other information are available on the Company's website at www.savientpharma.com. Mircette is a registered trademark of Organon, Inc. and Puricase is a registered trademark of Mountain View Pharmaceuticals, Inc.

    This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this report regarding the Company's strategy, expected future financial position, results of operations, cash flows, financing plans, discovery and development of products, strategic alliances, competitive position, plans and objectives of management are forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "will" and other similar expressions help identify forward-looking statements, although not all forward-looking statements contain these identifying words. In particular, the statements regarding the divestiture of the Company's global biologics manufacturing business and the potential for commercializing the Company's Puricase drug product candidate are forward-looking statements. These forward-looking statements involve substantial risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company's business and the biopharmaceutical and specialty pharmaceutical industries in which the Company operates. Such risks and uncertainties include, but are not limited to, the possibility that the divestiture of our global biologics manufacturing business will fail to close, due to failure to achieve regulatory approval or otherwise; our ability to complete the audit of our financial statements for the year ended December 31, 2004; delay or failure in developing Prosaptide, Puricase and other product candidates; difficulties of expanding the Company's product portfolio through in-licensing; disruption of management and costs associated with the divestiture of the Company's operations in Israel; introduction of generic competition for Oxandrin; fluctuations in buying patterns of wholesalers; potential future returns of Oxandrin or other products; our continuing to incur substantial net losses for the foreseeable future; difficulties in obtaining financing; potential development of alternative technologies or more effective products by competitors; reliance on third-parties to manufacture, market and distribute many of the Company's products; economic, political and other risks associated with foreign operations; risks of maintaining protection for the Company's intellectual property; risks of an adverse determination in on-going or future intellectual property litigation; and risks associated with stringent government regulation of the biopharmaceutical and specialty pharmaceutical industries. The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the Company's forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes. The Company's forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments that the Company may make. The Company does not assume any obligation to update any forward-looking statements.

--30--TM/ny*

CONTACT: Savient Pharmaceuticals, Inc. Jenene Thomas, 732-565-4716 jdthomas@savientpharma.com or The Ruth Group Investors/Media: Stephanie Carrington/Gregory Tiberend 646-536-7017/7005 scarrington@theruthgroup.com gtiberend@theruthgroup.com

KEYWORD: NEW JERSEY INDUSTRY KEYWORD: MEDICAL PHARMACEUTICAL BIOTECHNOLOGY MARKETING AGREEMENTS CONFERENCE CALLS SOURCE: Savient Pharmaceuticals, Inc.

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