Salix Pharmaceuticals (SLXP) will Flounder ahead of Visibility on Relistor - Jefferies

August 9, 2012 1:36 PM EDT Send to a Friend
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Price: $144.50 --0%

Rating Summary:
    16 Buy, 11 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 21 | Down: 34 | New: 3
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Jefferies analysts reiterated a Buy on Salix Pharmaceuticals (NASDAQ: SLXP), but cut their price target to $58.00 (from $63.00).

“The focus remains on Relistor and what additional clinical data the FDA wants, but the company was button-lipped. We love the growth outlook longer term, but think the stock may flounder until Relistor clarity,” said analyst Corey Davis.

“Although myriad questions were asked on the call, the company is not going to specifically reveal what new clinical data the FDA asked for. Our guess is that the request came last minute from another division besides GI and has something to do with safety since the pending new indication is a chronic use in a very large heterogeneous patient population. For now, we are pushing out our Relistor numbers for both the SubQ and the oral formulation — assuming a lengthy 2 year delay. We and Salix will know more after the FDA meeting in the coming weeks, and although the company still plans on filing the oral NDA by the end of Sept., this could certainly be delayed if the FDA doesn't change its mind on the nature of the clinical data requested. The crofelemer PDUFA date on Sept 5th will be a good barometer for Salix's relationship with the GI division of the agency,” added Davis.

For an analyst ratings summary and ratings history on Salix Pharmaceuticals click here. For more ratings news on Salix Pharmaceuticals click here.

Shares of Salix Pharmaceuticals closed at $44.99 yesterday.


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