Salix Pharma Posts Q4 Loss Of $288 Mln

(RTTNews) - Gastrointestinal drug maker Salix Pharmaceuticals, Ltd. (SLXP), which is being acquired by Valeant Pharma, reported Monday a hefty loss for the fourth quarter compared to a profit last year, hurt by significant asset and intangible impairment charges. The also company declined to issue an outlook due to its pending acquisition by Valeant.

Canadian drug maker Valeant Pharmaceuticals International, Inc. (VRX, VRX.TO) agreed on February 22 to acquire Salix Pharma for $158 per share in an all-cash deal valued at about $14.5 billion. The deal, approved by the boards of both companies, is expected to close in the second quarter of 2015.

Raleigh, North Carolina-based Salix reported a net loss of $287.65 million or $4.51 per share, compared to net income of $40.04 million or $0.58 per share in the prior-year quarter.

Results for the latest quarter primarily include asset and intangible impairment charges of $182.3 million.

Excluding items, adjusted net loss for the quarter was $167.0 million or $2.61 per share, compared to adjusted net income of $48.3 million or $0.70 per share in the year-ago quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report a loss of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.

Net product revenues for the quarter plummeted to $13.48 million from $238.56 million in the same quarter last year. Fifteen Wall Street analysts had a consensus revenue estimate of $190.91 million for the quarter.

Revenues were significantly impacted by the company's decision to substantially cease all sales efforts to wholesalers in the latest quarter and sell only minimal amounts of its products as a result of its previously-announced plan to accelerate the reduction of wholesaler inventory levels.

The company said it believes total net product revenues for the quarter would have been about $360 million, based on prescription demand of $167 million for Xifaxan 550, $31 million for Apriso,$34 million for Uceris, $12 million for Relistor, and $116 million for other products.

Xifaxan 550 mg prescriptions grew 23 percent, and Apriso prescriptions increased 12 percent from last year. Uceris prescriptions surged 56 percent, and Relistor prescriptions improved 37 percent from a year ago.

Total costs and expenses and expenses soared to $436.92 million from $160.98 million in the year-ago quarter, primarily including impairment of intangible assets of $162 million.

SLXP closed Monday's regular trading session at $156.88, down $0.32 or 0.20% on a volume of 2.69 million shares.