UPDATE 1-Savient mum on buyout, drug partner; shares fall

(Recasts; adds analysts' comments, stock movement)

By Esha Dey

BANGALORE, Sept 26 (Reuters) - Shares of Savient Pharmaceuticals (SVNT.O) fell 15 percent after the company said it was still evaluating options, disappointing investors looking for news of a partnership on its lead drug, or an acquisition by a bigger drugmaker.

"This is a major disappointment as people would have liked to see some kind of deal done by the end of this quarter," Jefferies' & Co analyst Eun Yang said.

However, Pacific Growth Equities analyst Kimberly Lee said, "Today's announcement means nothing has happened yet, but that doesn't mean nothing can happen."

Both analysts agree that any potential deal would involve Puricase -- Savient's experimental drug currently under late-stage development for the treatment of gout patients for whom conventional therapy has failed. Gout is a painful joint disorder caused by a build-up of uric acid in the blood.

Late last year the company announced that the drug, also called pegloticase, reached its main goal in a late-stage trial. Puricase's progress is being closely watched as it is the only drug currently in Savient's pipeline.

Any of the big drug companies such as Pfizer Inc (PFE.N), Amgen Inc (AMGN.O), Roche Holding AG (ROG.VX) and Johnson & Johnson (JNJ.N) could be interested in buying Savient or partnering it for Puricase, Pacific Growth's Lee said.

Savient, when contacted by Reuters, declined to comment on a possible acquisition or partnership.

The company is on track to file its biologics license application for Puricase with U.S. health regulators by the end of October.

Both Lee and Jefferies' Yang believe the market was hoping more for an acquisition than a partnership.

Jefferies' Yang had said in August that a potential buyer may want either a partnership or wait for the FDA's approval of 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.

Shares of the East Brunswick, New Jersey-based company, which had risen 24 percent over the past year through Thursday, fell to a low of $15.80, before recovering slightly to trade down $2.66 at $16.06 Friday afternoon on Nasdaq. (Editing by Pratish Narayanan)