Savient Pharmaceuticals' (SVNT) collapse is an unbelievably sad tale of woe, maybe the worst in all of biotech.
There have some catastrophic failures lately due to poor trial results-- like CLSN and ZIOP (today). But SVNT, after years and years of painstaking trials and investor angst, had two triumphant successes and now has two approved products! Their gout drug, in particular, is likely best-in-class. The stock price hit $25 a share at its peak, but has collapses down to $0.77. That's because they can't sell it! Sales are a measly $3-4 mil per quarter, and dropping. They can't get doctors to try it, and insurance companies are balking at paying for it. Why? Because the current gout treatment is good enough. People are "getting by" with the cheap meds. Plus, gout, though annoying, doesn't kill anyone.
This is one of the reasons to invest in a biotech like ZLCS...because, if one of their ICB's works and is approved, it will be huge. It will be a blockbuster or bust. No in between.
I can't imagine owning a stock like SVNT and basking in the glory of getting 2 drug approvals only to see the stock price collapse afterwards!