UPDATE 1-RESEARCH ALERT-Jefferies cuts Savient to hold

(Changes source, adds details, share movement)

Aug 4 (Reuters) - Jefferies & Co downgraded Savient Pharmaceuticals Inc (SVNT.O) to "hold" from "buy," saying a potential acquisition premium was "somewhat" reflected in the current share price, sending its shares down 8 percent.

The brokerage said it was cautious that a potential suitor may want either a partnership or wait for the U.S. Food and Drug Administration's approval of the company's gout drug, Puricase, to reduce its exposure to regulatory risks, or that Savient may want to wait for the drug's approval to demand a higher premium.

"With an anticipation for a potential acquisition running high, any potential outcome short of an acquisition may heavily weigh on the stock," analyst Eun Yang, who cut the price target on the stock to $25 from $30, wrote in a note to clients.

In December last year, the company said its gout drug Puricase (pegloticase) reached its main goal in late-stage trials. Gout is a painful joint disorder caused by a buildup of uric acid in the blood.

The brokerage expects the approval or the launch of Puricase in the second half of 2009. It currently estimates a market of $400 million for the drug in the United States, but said the real size or potential of the market opportunity can be debatable.

Shares of the East Brunswick, New Jersey-based company fell to a low of $24.01 earlier, but pared some losses and were down 5 percent at $24.76 in late morning trade on Nasdaq. (Reporting by Vidya L Nathan in Bangalore; Editing by Deepak Kannan)