Salix expects big dump in sales

Salix Pharmaceuticals" fourth-quarter income and net income somewhat exceeded analysts" expectations, but the Raleigh association projected first-quarter numbers that were surprisingly low.

"If the batch opens down [when shares proceed trade today], that will be the reason," pronounced researcher James Molloy of Caris & Co., who described the companys first-quarter projection as "kind of an eye-popper."

Salix foresee after the markets sealed Tuesday that first-quarter income will come in at $40 million, well next the fourth-quarter income of $70.2 million, that noted a sixteen percent climb. The association additionally is raised a loss of 50 cents per share, compared with the fourth-quarter loss of thirteen cents per share, or $11.1 million.

The reason for the lower-than-expected forecast, Molloy said, is the companys plan to revoke reserve of the 200-milligram sip of the top-selling drug, the antibiotic Xifaxan.

The move is in expectation of Food and Drug Administration capitulation of a 550-milligram dose. The higher sip would be for the diagnosis of a liver disease, hepatic encephalopathy.

Last month, a Food and Drug Administration advisory row endorsed that the group authorize the companys focus to foster Xifaxanwhich right away is used to provide travelers diarrheafor hepatic encephalopathy. The agency, that typically follows such advice, is approaching to action on the focus by Mar 24.

Molloy pronounced the "de-stocking" of the lower-dose Xifaxan creates sense, since the infancy of the prescriptions created by physicians are to provide hepatic encephalopathy and alternative ailments, not travelers diarrhea. But analysts hadnt incorporated such a move in to their forecasts.

Earlier Tuesday, Salix shares rose eighteen cents to close at a high of $31.23. A year ago, shares fetched $6.36.

Salix projects that the income will burst to $334 million this year as sales of Xifaxan and alternative drug increase. The association anticipates that gain per share will volume to 4 cents.

Xifaxan sales totaled $117.9 million last year, up from $79.9 million in 2008.

Salix, as well as a little analysts, forecasts annual rise sales of $1 billion if the FDA approves Xifaxan make use of for hepatic encephalopathy.