UPDATE: Citadel Downgrades Savient Pharmaceuticals to Neutral

Citadel is out with its report today on Savient Pharmaceuticals SVNT, downgrading SVNT to Neutral. In a note to clients, Citadel writes, "With the slow ramp for Krystexxa in the U.S., and with a lack of meaningful catalysts until late 2011 / early 2012, we are downgrading SVNT shares to Neutral, and establish a new $9 price target based on the sum-of-the-parts net present valuation for Krystexxa. Our analysis is based on peak sales projections for the drug derived from patientbased models. Importantly, we probability adjust our revenue estimate for Krystexxa in the EU. We project revenues until the expiry of Krystexxa patents, and then establish a terminal value. We discount our net income estimate back to the present at a rate of 15.3%, which assumes a risk-free rate of 3.47%, a risk premium of 10.6%, and a beta of 1.11. We then divide by our projected year-end share count to arrive at a value per share for SVNT." Shares of SVNT closed Thursday at $8.12, down 0.98% from Wednesday's close.