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Salix, Santarus talk synergies, diversification; 2014 guidance provided

  • Salix Pharmaceuticals' (SLXP) deal for Santarus (SNTS) creates a specialty company with 22 marketed products and very little overlap.
  • Uceris, Glumetza, and Zegerid — which this quarter had sales of $19.6M, $45.6M, and $27.1M, respectively — should help SLXP diversify its revenue stream. In Q3, Xifaxan accounted for nearly 70% of the top-line.
  • The companies say that post-merger, "no product is expected to account for more than 50% of the combined company's revenue."
  • Combined company Q3 results: Revenue of $1.348B and adjusted EBITDA of $537M.
  • SLXP expects "revenue synergies from the increased number of sales representatives in GI and the expanded presence in primary care."
  • FY14 combined company outlook: Adjusted EPS of $5. (PR)
  • See also: SNTS Q3 results, SLXP Q3 results
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