Salix Pharma to Explore More Options
Published By : 21 Jan 2015 | Published By : QYRESEARCH
The maker of bowel related drugs, Salix Pharmaceuticals Ltd., is currently in talks with Centerview Partners Holdings LP, an investment bank, to consider more possibilities. The company is deliberating over a potential sale to a bigger pharma company.
The North Carolina based Salix saw its CEO Carolyn Logan resign earlier in January. The company has yet to come to a conclusion over whether it will take a sale now or hold till a new CEO is hired.
Salix spokesperson declined to comment on the situation. Centerview Partners also declined to comment.
Salix shares meanwhile, increased by 8.3 per cent on the news.
The move points to all the restraints that Salix is being pressured under after it announced in November that its supply for Xifaxan was higher than the supply. This coerced the company to cut its forecasts for full year earnings. Xifaxan is Salix’s most popular drug for irritable bowel syndrome.
Botox maker Allergan also quit discussions about acquisition plans of Salix after blaming the inventory issue.
Most of the biggest shareholders of Salix have already voiced their opinion to make the sale after being disappointed with the company’s strategies.
Thomas D’Alonzo, the chairman of Salix, is currently the acting chief executive officer who is working on an interim basis, while the drug maker tries desperately to bounce back from the inventory issue and the resignation of many top executives including the CEO.
In December, Salix said that it would have to slash sales to wholesalers for three top drugs out of four. The inventory issue is expected to be mitigated by the end of the current year.