Brean Murray Carret Cuts Price Target on Salix (SLXP), Factors in Oceana Therapeutics Acquisition

Brean Murray Carret & Co. is reiterating its Buy rating on shares of Salix Pharmaceuticals (NASDAQ: SLXP), but is lowering its price target from $53 to $50.

The firm reports that it has finally calculated the implications of the Oceana Therapeutics acquisition into their valuation.

Brean Murray Carret's forecast of Deflux sales remains conservative as they estimate total sales of $30 million in 2012 and only a 5 percent growth rate for each year after. If the company's entire sales force is behind the product, the firm notes the possibility of an upside to its estimates.

For Solesta, the firm notes the potential is outstanding, but currently only sees a 3 percent penetrations rate in the U.S. and a 0.75 percent penetration rate in Europe by 2016. Brean Murray Carret's worldwide sales estimate for 2016 is $259 million.

Brean Murray Carret is reaffirming its FY11 EPS estimate of $1.62 while raising its FY12 estimate from $1.73 to $1.86. The firm currently estimates sales of $538.4 million for FY11 and $828.4 million for FY12.

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 $36.72 yesterday.

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