Salix Pharmaceuticals Ltd. has earned profits for the second quarter subsequent to reporting losses in revenues in the previous year due to a $30 million write-down, announced the company on Monday.
Although the company is said to have earned $19.2 million, or 32 cents per share, it took a hit of $23.6 million, or 41 cents per share in the previous year. In the most recent quarter, Salix is said to have made total profits amounting 54 cents per share, excluding one-time items. Revenues spiked 20 percent from $93.8 million to $133.2 million.
FactSet surveyed analysts anticipated profits of 48 cents per share and $130.9 million.
Consequent to the FDA marketing approval of two low-cost generic drugs, Salix declared the worth of its Pepcid OS assets as $30 million in the second quarter of 2010.
According to the company, revenue rises of 20 percent to $87 million can be attributed to its drug Xifaxan, one dose of which is sold by Salix to treat traveler’s diarrhea. A higher dose of Xifaxan was sold by the company during the quarter as a treatment for explicit hepatic encephalopathy, or neurological problems linked with liver failure. The company hopes to commence a new clinical trial in late 2011 or early 2012 to attain marketing approval for Xifaxan to be sold as a treatment for irritable bowel syndrome.
With a slumps in the market on Monday, Salix shares plummeted $1.90, or 5.5 percent, to $32.70. Subsequent to the release of the company’s earnings report, the stocks remained consistent in aftermarket trading.