The second quarter brings in profits for Salix Pharma
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.