High Trading Interest on Savient and Gout Treatment Ahead of FDA Review (SVNT)
Savient Pharmaceuticals, Inc. (NASDAQ: SVNT) is seeing a huge spike in trading of its stock and options ahead of Tuesday’s FDA review of its gout drug. This follows a huge move on Friday and is for the BLA of KRYSTEXXA for use when other gout treatments have failed. So far we have seen 8.8 million shares trade hands as of 2:30 PM EST, while the normal trading volume is only 1.85 million shares.
The FDA is scheduled to ask a panel of outside arthritis experts next Tuesday to weigh- in on the drug’s risks and benefits. The panel would determine whether additional studies would be needed to evaluate Krystexxa’s impact on the heart. A final decision on Savient’s drug is expected by the end of July.
Here is the official review of stock options trading to show the excessive interest:
JUNE CALL OPTION ACTIVITY
5.00 saw 3,540 contracts and prior open interest was 62,552 contracts.
7.50 saw 9,869 contracts and prior open interest was 65,967 contracts.
10.00 saw 15,259 contracts and prior open interest was 38,223 contracts.
12.50 saw 4,273 contracts and prior open interest was 11,120 contracts.
15.00 saw 1,185 contracts and prior open interest was 2,337 contracts.
JUNE PUT OPTION ACTIVITY
5.00 saw 19,855 contracts and prior open interest was 63,270 contracts.
7.50 saw 3,014 contracts and prior open interest was 7,647 contracts.
10.00 saw 4,140 contracts and prior open interest was 2,075 contracts.
Do not be surprised if Savient is halted for the full day on the review.
A firm called Wall Street Access raised its rating this morning to Buy from Hold ahead of the event. Savient’s stock is up 3.6% at $9.60 and the 52-week trading range is $2.80 to $28.42.
Jon C. Ogg
June 15, 2009
