There has been ample M&A activity in the drug sector, with companies like Valeant (NYSE:VRX), Endo International (NASDAQ:ENDP), and Actavis (ACT) all looking to add scale and exploit low interest rates and low tax rates. Salix (NASDAQ:SLXP) has been busy too, paying around $2.6 billion to acquire Santarus and adding scale in primary care and GI drugs. Salix's valuation suggests that investors may still be expecting more action, as Salix's focused portfolio and high effective tax rate could make it a player either as an acquirer seeking a tax inversion deal or a target.
A Messy Start To The Year
Salix's reported results for the first quarter were basically okay, but messier than investors...
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