In its court filings, the company said it will continue normal operations and has negotiated with its senior secured noteholders to ensure that it has sufficient liquidity to conduct its business. The company expects to be able to meet all financial obligations, including future wages, salaries and benefits, if the terms are accepted by the bankruptcy court.
The company also announced plans to pursue a sale process under Section 363 of the U.S. Bankruptcy Code to Sloan Holdings C.V. ("Sloan"), a subsidiary of US WorldMeds, LLC. Under the proposed agreement, Sloan will acquire substantially all of the assets of Savient for approximately $55 million, including KRYSTEXXA, a proprietary product used for the treatment of chronic gout.
"The board and management team have conducted a rigorous assessment of all of our strategic options and believe that this process represents the best possible solution for Savient, taking into account our financial and operational issues and helping to unlock the value of KRYSTEXXA," said Stephen O. Jaeger, chairman of the Board of Savient. "We are committed to an outcome that maximizes value and allows KRYSTEXXA to remain commercially available in the U.S. to all of the patients who have come to rely on this life-changing therapy. Further, we are thankful to our dedicated employees who will continue to work vigorously to develop and provide KRYSTEXXA throughout this process."