Savient receives two-week extension from Nasdaq to refile reports, prevent delisting

By Angela McDaniels

Seattle, Jan. 3 - Savient Pharmaceuticals Inc. said the Nasdaq Listing Qualifications Panel has agreed not to delist the company's securities provided that the company files amendments to several financial reports by Jan. 13.

The company requested the extension for its form 10-K for the year ended Dec. 31, 2004, including 2003 and 2002 prior period restatements and its form 10-Q for the quarter ended March 31, 2005, as well as its initial form 10-Q for the quarter ended June 30, 2005, according to a company news release.

The initial deadline for the restatements was Dec. 26.

The company had also requested that the panel extend the time limit for filing its form 10-Q for the quarter ended Sept. 30, 2005. The deadline has been extended to Jan. 20 from Jan. 3.

The extensions were requested by the company as a result of two related comment letters that it has received from the Securities and Exchange Commission as part of a normal periodic review of the company's filings, according to a company news release.

The comments have resulted in what Savient called lengthy and ongoing discussions with the SEC about the company's accounting treatment of the negative goodwill related to its 2001 acquisition of Myelos Corp.

This issue is unrelated to accounting issues that have delayed the filing of the financial reports required by Nasdaq.

The company said it believes that, other than this one remaining accounting issue, it has substantially completed the preparation of the reports referenced above and there are no other open issues remaining.

Savient previously announced that amended reports would contain restatements that were primarily the result of errors made in connection with estimating product return and inventory reserves related to sales of the company's products.

The amended filings will also include restatements and adjustments to rebate allowances related to contracts with Medicaid and other government agencies. Based upon the historical trends, the company said it has determined that Medicaid rebates were generally under-accrued and rebates related to other government agencies were generally over-accrued.

Savient is a specialty pharmaceutical company based in East Brunswick, N.J., that develops therapeutic products to address unmet medical needs.

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