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Salix Pharmaceuticals, Ltd. (SLXP)

  • Fri, Feb. 13, 1:58 AM
    • Not only is Valeant Pharmaceuticals (NYSE:VRX) reportedly prepping a bid for Salix Pharmaceuticals (NASDAQ:SLXP), but Shire (NASDAQ:SHPG) is now rumored to be preparing an offer.
    • Shire has taken initial steps towards a bid and is evaluating how to secure financing, sources told Reuters.
    • Yesterday, Valeant Pharmaceuticals was reported to be arranging financing for a takeout of Salix at a likely price of more than $150 per share. Including net debt, Salix is valued at almost $11B.
    • Previously: Valeant close to a bid for Salix (Feb. 12 2015)
    • SLXP +1.2% premarket
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  • Thu, Feb. 12, 3:53 PM
    • People close to the matter say Valeant Pharmaceuticals (VRX +2.1%) has arranged financing for a takeout of Salix Pharmaceuticals (SLXP +4%) at a likely price of more than $150 per share. Including net debt, Salix is valued at almost $11B.
    • Salix's products treat ulcerative colitis and travelers' diarrhea and, when approved, irritable bowel syndrome. Consensus view for 2014 is a loss of ($0.11) per share on revenues of $1.32B.
    • The deal would be a noteworthy win for Valeant after its failed attempt to buy Allergan.
    • Previously: Trading in Salix halted, possible sale in the works (Jan. 20)
    • Previously: Salix jumps on yet another buyout rumor (Feb. 3)
  • Tue, Feb. 3, 12:43 PM
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  • Wed, Jan. 28, 5:08 PM
    • After an accounting review by the Board's Audit Committee, in consultation with others, Salix Pharmaceuticals (NASDAQ:SLXP) announces that its financial statements for 2013 and the first three quarters of 2014 contain errors and should no longer be relied upon. The errors are primarily related to the timing of the recognition of certain revenue, revenue-reducing returns and discounts and expense items.
    • The corrections will reduce net product revenue and net income $20.1M and $11.8M ($0.18 per share), respectively, for 2013. For the first three quarters of 2014, net product revenues will be reduced by $0.7M with no change in net loss.
    • Salix expects to file the revised statements with the SEC prior to filing its 10-K on or before March 2.
    • Investors appear unconcerned. Shares are up 1% after hours on light volume.
  • Tue, Jan. 20, 1:56 PM
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  • Mon, Jan. 5, 4:47 PM
    • Salix Pharmaceuticals (NASDAQ:SLXP) President & CEO Carolyn Logan plans to retire effective January 30. Chairman Tom D'Alonzo will take over on an interim basis as acting Chief Executive until a successor is hired. SVP and General Counsel William Bertrand, Jr. is appointed Acting COO.
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  • Dec. 16, 2014, 9:10 AM
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  • Dec. 16, 2014, 8:48 AM
    • The FDA extends the PDUFA date for its review of Salix Pharmaceuticals' (NASDAQ:SLXP) sNDA for Xifaxan (rifaximin) 550 for the treatment of irritable bowel syndrome with diarrhea to May 27, 2015.
    • The company remains optimistic that clearance will be obtained. It forecasts peak sales for this indication of $2.1B.
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  • Dec. 16, 2014, 8:39 AM
    • Salix Pharmaceuticals (NASDAQ:SLXP) says it is working with its principal wholesalers to accelerate the reduction in inventory levels of Xifaxan 550, Apriso and Uceris to ~three months by the end of 2015, one year earlier than previously announced. Under this plan, the company will sell only minimal amounts of the products to wholesalers this quarter. Also, it expects its distribution services agreements with its principal wholesalers to be finalized and effective in Q1.
    • CEO Carolyn Logan says, "By accelerating the reduction of our inventory to targeted levels, we can more quickly focus on the underlying strength of our business and return sales growth to demand-based levels. As part of this effort, we are working with our wholesale partners to more aggressively work down their inventories. While this effort will impact Salix's revenue in the fourth quarter of 2014 and the full year 2015, we believe this one-time reduction over a defined period of five quarters is the right decision for the business long term."
    • 2015 Guidance: Revenues: $1.25B - 1.35B; Gross Margin: ~80%; EBITDA: $360M - 440M; EPS: $3.10 - 4.10.
    • 2016 Guidance: Revenues: $1.9B - 2.0B; Gross Margin: ~80%; EBITDA: $865M - 945M; EPS: $8.50 - 9.50.
    • SLXP is up 6% premarket on high volume.
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  • Dec. 9, 2014, 7:14 AM
    • The European Commission approves AstraZeneca's (NYSE:AZN) Moventig (naloxegol) for the treatment of opioid-induced constipation in adult patients who have had an inadequate response to laxatives. It is the first once-daily oral peripherally -acting mu-opioid receptor agonist (PAMORA) approved in the EU.
    • Moventig is part of an exclusive worldwide license agreement initiated in 2009 with Nektar Therapeutics (NASDAQ:NKTR). The product utilizes Nektar's oral small molecule polymer conjugate technology.
    • Previously: Ad Comm supports approval of Moventig for OIC (Sept. 26, 2014)
    • Previously: FDA clears OIC drug (Sept. 16, 2014)
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  • Nov. 7, 2014, 12:52 PM
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  • Nov. 7, 2014, 9:14 AM
  • Nov. 7, 2014, 8:38 AM
    • Salix Pharmaceuticals (NASDAQ:SLXP) is off 34% premarket on robust volume in response to its disclosure of accounting problems regarding wholesaler inventory levels. Per its Q3 earnings announcement, the levels for key products are: Xifaxan: nine months; Apriso: nine months; Glumetza: seven months; Uceris: five months.
    • The company says that there is a lack of visibility with its wholesalers regarding sales, making it problematic to accurately forecast appropriate inventory levels. It is now negotiating with its main wholesalers to enter into distribution services agreements for each product in order to improve, among other things, the planning process. The agreements should be finalized in Q1 2015. It expects to adjust inventory levels to ~three months. Wholesaler inventory levels of Glumetza will fall to ~one month or less when a generic competitor enters the market in early 2016.
    • Previously: Salix shares plummet, CFO resigns
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  • Nov. 7, 2014, 1:53 AM
    • Salix Pharmaceuticals (NASDAQ:SLXP) -38.3% AH after announcing an accounting revision that showed sales of its drugs not as strong as Wall Street's expectations. The changes were accompanied by the resignation of CFO Adam Derbyshire.
    • The accounting issue also played a role in scuttling a potential takeover from Allergan (NYSE:AGN) earlier this year, WSJ reports.
    • Salix lowered its earnings guidance for the year, and now expects 2014 net income of $400M, or $5.20 per share, down from earlier estimates of $475M, or $6.16 per share.
  • Nov. 6, 2014, 5:36 PM
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  • Nov. 6, 2014, 4:51 PM
    • Salix Pharmaceuticals (NASDAQ:SLXP): Q3 EPS of $1.53 misses by $0.02.
    • Revenue of $354.72M (+48.9% Y/Y) misses by $37.64M.
    • Shares -32.95%.
    • Press Release
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Company Description
Salix Pharmaceuticals Ltd is a specialty pharmaceutical company. The Company is engaged in acquiring, developing and commercializing prescription drugs and medical devices used in the treatment of gastrointestinal disorders.
Sector: Healthcare
Industry: Drugs - Generic
Country: United States