Savient Pharmaceuticals files for Chapter 11 bankruptcy

Reuters

Oct 14 (Reuters) - U.S. biotech firm Savient PharmaceuticalsInc filed for Chapter 11 bankruptcy protection in aDelaware court on Monday and said it has agreed to sell most ofits assets to Sloan Holdings CV for about $55 million.

The agreement with Sloan, a unit of US WorldMeds LLC, wouldserve as a "stalking horse" bid in a court-supervised auction ofSavient's assets, the company said in a statement.

A stalking horse bid serves as the minimum offer for thebusiness, which could still be topped by others.

The drugmaker, which has been under pressure from itslargest creditor to liquidate, said it would keep its gout drugKrystexxa commercially available in the United States.

Krystexxa, which treats chronic gout in adults who do notrespond to conventional therapy, has had disappointing salessince its launch in September 2010.

Savient listed total assets of about $74 million andliabilities of $260 million as of June 30, court documents filedon Monday showed.

Shares of the company, which have fallen 47 percent thisyear, closed at 57 cents on Monday on the Nasdaq.

The case is In re: Savient Pharmaceuticals Inc, U.S.Bankruptcy Court, District of Delaware, No. 13-12680.

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