Goldman Sachs Maintains a 'Neutral' on Salix Pharmaceuticals (SLXP); Unexpected FDA Setback
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Price: $60.39 +1.17%
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade SLXP Now!
Goldman Sachs maintains a 'Neutral' on Salix Pharmaceuticals (NASDAQ: SLXP) price target of $47.00 (from $48.00).
Analyst, Greory Waterman, said, "Salix announced the receipt of a Complete Response Letter from the FDA in response to its sNDA for Relistor in the treatment of opioid-induced constipation in patients with chronic non-cancer pain...This is a negative surprise relative to high expectations for approval with implications potentially extending beyond the indication itself to the oral formulation. We have viewed Relistor as a $60-70 mn peak potential franchise given the current indication and formulation, a $175 mn franchise with this expanded indication, and a $350-400 mn franchise with the oral formulation. Key questions now revolve around the FDA’s source of discomfort, the hurdles to address these, and the timelines that will be required to run the requested clinical work."
Goldman raised FY13 from $2.16 to $2.49.
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 $53.19 yesterday, with a 52 week range of $25.64-$55.99.
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Analyst, Greory Waterman, said, "Salix announced the receipt of a Complete Response Letter from the FDA in response to its sNDA for Relistor in the treatment of opioid-induced constipation in patients with chronic non-cancer pain...This is a negative surprise relative to high expectations for approval with implications potentially extending beyond the indication itself to the oral formulation. We have viewed Relistor as a $60-70 mn peak potential franchise given the current indication and formulation, a $175 mn franchise with this expanded indication, and a $350-400 mn franchise with the oral formulation. Key questions now revolve around the FDA’s source of discomfort, the hurdles to address these, and the timelines that will be required to run the requested clinical work."
Goldman raised FY13 from $2.16 to $2.49.
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 $53.19 yesterday, with a 52 week range of $25.64-$55.99.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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