Among the investors who is high on Salix Pharmaceuticals, the Raleigh company that specializes in gastrointestinal drugs, is hedge fund manager John Paulson.
Paulson, who made billions during the economic crisis by shorting mortgage-backed securities, now owns 1.5 million shares in the company as of June 30, according to regulatory filings.
That's an increase of 1.36 million shares over what his fund, Paulson & Co., reported at the end of the first quarter.
Paulson now owns 2.57 percent of Salix's outstanding shares, making his fund the ninth largest shareholder in the company.
Salix shares are down about 30 percent over the last year. The company's stock open at $27.78 in trading today.
The stock plunged 24 percent in a single day of trading in February after Salix said regulators would likely delay approval of its best-selling drug Xifaxan for treatment of irritable bowel syndrome.
Salix announced last month that it would continue to seek Food and Drug Administration approval for IBS treatment, a market that could be worth billions.
The FDA also recently announced that it would review Salix' application to expand the allowed uses for Relistor, a drug that treats constipation in patients taking pain medicines.
The drug had just $16 million in worldwide sales last year, but Salix thinks the drug has the potential for peak annual sales of a billion dollars.