Savient Pharmaceuticals (SVNT)

Note 15—Subsequent Event

In April 2009, the Company raised $31.0 million from a registered direct offering, which yielded $29.0 million in cash net of $2.0 million of offering costs, which were charged to additional paid-in capital. The Company issued 5,927,343 shares of its common stock to existing and new institutional investors as part of the offering. The investors also received warrants to purchase up to 5,038,237 shares of its common stock at an initial exercise price of $10.46 per share.

The warrants are exercisable at any time on or after the date of issuance and expire on a date that varies based on the U.S. Food and Drug Administration’s (“FDA’s”) response to the Company’s Biologic License Application (“BLA”) for KRYSTEXXA. If the FDA responds to the BLA with a “complete response letter” constituting approval or rejection of the BLA, then the warrants will expire nine months after the date the Company publicly announces that the FDA issued its “complete response letter”. If the FDA responds to the BLA with a “complete response letter” that does not constitute an approval or rejection, then the warrants will expire on the earlier of the date that is fifteen months after the date that the Company publicly announces that the FDA issued its “complete response letter” and the date that is nine months after the date on which the Company publicly announces that it has addressed all items required by the FDA to be addressed before the BLA can be approved. The warrants will expire on the seventh anniversary of the closing of the offering if, on or prior to that date, the Company has not announced that the FDA issued its “complete response letter.”

In the event that the Company publicly announces that the FDA has issued a “complete response letter” with respect to the BLA during the exercisability period for the warrants, then the exercise price will, from and after the eleventh trading day following the date of such announcement, be changed to the dollar volume weighted-average price of the Company’s common stock for the five trading days immediately preceding the tenth trading day after the date of such announcement. The exercise price may not exceed $10.46 or be less than $1.57. The Company may, at its or the warrant holder’s election, issue net shares in lieu of a cash payment of the exercise price by the warrant holder upon exercise.

In the event that the Company enters into a merger or change of control transaction, the holders of the warrants will be entitled to receive consideration as if they had exercised the warrant immediately prior to such transaction, or they may require the Company to purchase the warrant at the Black-Scholes value.

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Our management’s discussion and analysis of financial condition and results of operations contains statements which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements that set forth anticipated results based on management’s plans and assumptions. From time to time, we also provide forward-looking statements in other materials we release to the public as well as oral forward-looking statements. Such statements discuss our strategy, expected future financial position, results of operations, cash flows, financing plans, development of products, strategic alliances, intellectual property, competitive position, plans and objectives of management. We often use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions to identify forward-looking statements. In particular, the statements regarding our new strategic direction and its potential effects on our business and the development of our lead drug candidate KRYSTEXXA^TM (pegloticase), are forward-looking statements. Additionally, forward-looking statements include those relating to future actions, prospective products or product approvals, future performance, financing needs, liquidity or results of current and anticipated products, sales efforts, expenses, interest rates, foreign exchange rates and the outcome of contingencies, such as legal proceedings, and financial results.

We cannot guarantee that any forward-looking statement will be realized. Achievement of future results is subject to risks, uncertainties and potentially inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. You should bear this in mind as you consider forward-looking statements.

We undertake no obligation to publicly update forward-looking statements. You are advised, however, to consult any further disclosures we make on related subjects in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Note 18—Subsequent Event

Separation Agreement Costs

On January 17, 2009, the Company entered into a General Release and Separation agreement (“the Agreement”) with its former President and Chief Executive Officer. Pursuant to the agreement, the Company accrued severance costs of approximately $1.9 million for the year ended December 31, 2008 which will be paid out over the course of 2009 and 2010 comprised of, (i) two year’s base salary to be paid over two years totaling approximately $1.0 million, (ii) cash bonus at 60% of two times base salary to be paid over two years in the amount of approximately $0.6 million, (iii) continuation of welfare benefits of healthcare, dental, life and accidental death and dismemberment, and disability insurance coverage for a period of twenty-four months totaling approximately $0.2 million and (iv) unused vacation days and outplacement assistance in the amount of $0.1 million.

Note 18—Subsequent Event

Separation Agreement Costs

On January 17, 2009, the Company entered into a General Release and Separation agreement (“the Agreement”) with its former President and Chief Executive Officer. Pursuant to the agreement, the Company accrued severance costs of approximately $1.9 million for the year ended December 31, 2008 which
will be paid out over the course of 2009 and 2010 comprised of, (i) two year’s base salary to be paid over two years totaling approximately $1.0 million, (ii) cash bonus at 60% of two times base salary to be paid over two years in the amount of approximately $0.6 million, (iii) continuation of welfare benefits of
healthcare, dental, life and accidental death and dismemberment, and disability insurance coverage for a period of twenty-four months totaling approximately $0.2 million and (iv) unused vacation days and outplacement assistance in the amount of $0.1 million.