Salix Pharma Withdraws Q4 Guidance Due To Accelerated Inventory Reduction Plan

(RTTNews) - Salix Pharmaceuticals Ltd. (SLXP) announced the company is working with its principal pharmaceutical wholesalers to accelerate the reduction of wholesaler inventory levels of XIFAXAN 550, APRISO and UCERIS to the target of approximately three months by the end of 2015 - one year earlier than previously announced. In order to effect the plan, the company intends to sell to wholesalers minimal amounts of XIFAXAN 550, APRISO and UCERIS during the fourth quarter of 2014. As a result, the company said it is withdrawing guidance for the fourth quarter of 2014 and full year 2014.

The company issued preliminary guidance for the full years 2015 and 2016. For the full year 2015, Salix expects: total net product revenue of between approximately $1.25 billion and $1.35 billion; and earnings per share of between approximately $3.10 and $4.10. Analysts polled by Thomson Reuters expect the company to report earnings per share of $4.49 on revenue of $1.51 billion for fiscal 2015. Analysts' estimates typically exclude special items.

For the full year 2016, Salix expects: total net product revenue of between approximately $1.9 billion and $2.0 billion; and earnings per share of between approximately $8.50 and $9.50.

Salix announced that on December 15, the FDA provided written notice to the company that it has extended the Prescription Drug User Fee Act Action Date for XIFAXAN 550 for the treatment of irritable bowel syndrome with diarrhea, or IBS-D, to May 27, 2015. The company remains confident that FDA approval for XIFAXAN 550 for the treatment of IBS-D will be obtained. The company noted that there is no assurance that FDA approval will be obtained in a timely manner or at all.