Salix Setback Keeps It a Sell
Salix Pharmaceuticals, Ltd. (SLXP - Analyst Report) is a specialty pharmaceutical company engaged in acquiring, developing and commercializing prescription drugs used in the treatment of a variety of gastrointestinal diseases.
The company suffered a major setback in December 2007 when the FDA granted approval to three generic versions of lead product, Colazal. This is devastating news for Salix as Colazal was a significant contributor to both the top-and bottom-line. As such, we expect 2008 to be an extremely challenging year for the company with a significant decline in both revenues and earnings.
While new product launches and new indications for Xifaxan should support a recovery in revenues in 2009, we do not expect earnings to recover prior to 2010. We maintain a Sell rating with a target price of $5.
Arpita Dutt contributed to this report.
|
|
|
Share |
RSS |
Rate Pos |
Rate Neg |
Comment |
|
|
||||||
- Free Four Zacks #1 Rank "Strong Buy" Stocks
- Free Timely Market Commentary
- Free Wealth Management Tips
- Free Profitable Strategy Screens
- Free Bull and Bear Stocks of the Day
Loading Stories...Most Popular on Zacks.com
More Zacks Resources
More Zacks Links
| Market Summary | Nov 26, 2009 08:38 am ET |


Sponsored Links 
-1.15 %

30.69
[CLICK TO CLOSE X]