In the last CC, LF said (I'm paraphrasing here) that the next two months are going to be exciting and that the partnering deal terms he has been receiving have been "creative". I think LF needs a good CFO to evaluate these terms and provide counter-offers. Remember, LF's background is in Sales and Marketing (which is GOOD at this juncture!), not Finance, so he needs some help.
Now what does "creative" mean? Reading between the lines I think that the (European) partnering company is also the company that will ultimately buy Savient. This complicates the negotiations a lot. It also means there won't be any partner / buyout announcements until after Krystexxa is approved for EU (duh). But once K is approved for EU, look out for a series of announcements, and look for the price to really take off.
Looking into my crystal ball I think we'll get EU approval in late October (or Thanksgiving time at the very latest), and partnership / buyout announcements in late November or December.
In the mean time you should accumulate shares at these fire-sale prices like the big boys are doing. Next week I think volume will drop and the SP will go up gradually as the handle of the teacup is formed. I'm long 100K shares ($1.57 ASP) and there's no way I'm letting 'em go!
Jim M, thx for your take and sharing the Conf Call info. It's encouraging that LF even shared that he's been getting partnering deal terms - good to know. Will be interesting to see if you've guessed right - (European) partnering company is also the company that will ultimately buy Savient. Time will tell. Hope SP resumes climbing next week. Foolish us thinking world events won't bring SVNT down. Gotta think it's been hammered enough this week. Wow, you're in 100K shares ($1.57 ASP)! That's big boy league! Wish I had more dough.
OK I'm back now. Don't see anyone has responded yet on the Share Grants and Options impact. Here's my two cents. The way they are written It would seem that the SVNT shr price needs to climb and stay above the $2.92 exercise price in order to be of value to the new CFO. And he has an incentive to navigate SVNT through a 'change of control' sooner rather than later because his Grants and OPtions are subject to acceleration and full vesting immediately. So, if the shr price remains above $2.92 Shr the CFO stands to make quick pile of money on a buyout or partnership.
KG - I don't think there is anything telling (from a timeline perspective) about the CFO share grant. They brought in a world-class CFO, one with proven M&A experience. This is a pretty standard Exec package, nothing more. Compensation with equity vesting over several years is typical. A trigger included in case of an event (like a sale) is also typical. Although usually there would be a mandatory retention period - so if the company is sold they would require that he stays on for a period of time post sale for transition purposes or simply to maintain continuity in operations. Anyway - this is nothing different than anything any other company similar in size and scope to SVNT does. I think it is a positive move for all of us. I've often seen references to SVNT's "poor management team". Well..we have a new CEO and CFO now and they look like winners to me...SVNT is in the last week of their quarter..I wish them luck and hope they crush the last quarter's number.The last conferences were very bullish and I think they come in with a very strong number. I also will not be surprised to see a non-partner announcement material event prior. I picked up more shares yesterday and think we finish off this correction today. I feel great about going into into next week and have not lost any sleep about the pullback. Good luck..