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Salix revenues increase 27 percent in third quarter

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Salix Pharmaceuticals reported late Wednesday that revenue increased 27 percent in the third quarter.

The Raleigh company had revenue of $185.1 million for the quarter, which was below Wall Street estimates of $187.6 million.

Excluding the loss of extinguished debt and non-cash adjustments, net income for the quarter was $59.7 million, or 95 cents per share. That handily beat the 70 cents that was the consensus among Wall Street analysts who cover the company.

Salix sells drugs to treat gastrointestinal ailments.

Revenue from the company’s best-selling drug Xifaxan, which is approved to treat travelers’ diarrhea and a rare liver condition, increased 43 percent in the quarter to $137.9 million. Research and development expense increased 32 percent in the quarter to $32.8 million. The increase was due largely to the company’s efforts to get Xifaxan approved to treat irritable bowel syndrome.

Salix continues to forecast total revenue for 2012 of $735 million, which would be a 36 percent increase over 2011.

Salix shares closed Wednesday down 26 cents at $37.97. The stock is down 21 percent this year.

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About the blogger

Business reporter David Bracken came to the N&O in 2004. He covers commercial and residential real estate. Contact David at 919-829-4548 or e-mail him.
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