Savient Pharma (SVNT) Names Ferrari as Pres, CEO; Unveils Reorganization Plan

July 9, 2012 11:32 AM EDT
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Savient Pharmaceuticals, Inc. (Nasdaq: SVNT) today announced that the Company's Board of Directors has appointed Louis Ferrari, Executive Vice President, President North American Commercial Operations, to the role of President and Chief Executive Officer, effective immediately.

The company also announced a reorganization plan to better align its operations and budget which includes organizational changes designed to improve its operational efficiencies while ensuring continued focus on the commercialization of KRYSTEXXA and the advancement of its clinical expansion programs. As part of the initiative, the company expects to eliminate approximately 35% of its work force across the company, including current vacancies, which will be effective as of September 10, 2012. In particular, Savient noted that its field force will be restructured to consist of 35 key account managers and three regional business directors. Savient does not expect that service levels to patients, doctors or other customers will be impacted by this reduction.

The initiatives presented as part of the plan are expected to generate approximately $56 million in annual operating expense savings by 2013 as compared to the Company's actual annualized first quarter 2012 operating expenses, with approximately $6.5 million of these operating expense savings to be realized in 2012. Additionally, Savient expects to recognize approximately $4.7 million in restructuring and employee severance charges associated with these initiatives, including $3.6 million during 2012. Savings from these actions will support the company's future growth strategies. Also, as a result of the implementation of the Company's reorganization plan Savient will be examining its inventory obsolescence and purchase commitment liabilities and will report on any potential adjustment charges as part of its second quarter 2012 financial report.

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