Wells Fargo Boosts Valuation Range on Salix Pharmaceuticals (SLXP), Multiple Strong Growth Drivers
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Price: $172.81 --0%
Rating Summary:
7 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo is reiterating its Outperform rating on shares of Salix Pharmaceuticals (NASDAQ: SLXP) while increasing its valuation range from $47-$53 to $52-$57.
Completion of the Oceana Therapeutics acquisition for $300 million in cash, which the company had on hand, is good news for the company as management expects it to be modestly accretive to its 2012 results. The company received both Deflux and Solesta from the acquisition, and while Deflux is expected to see $36 million in total sales for 2011, SLXP forecasts Solesta could have sales top $500 million during its peak year.
An analyst at Wells Fargo comments, "We believe the addition of Oceana helps bolster SLXP’s product portfolio, and the Solesta launch should significantly benefit from SLXP's marketing expertise and resources in the gastroenterology space."
To account for the contribution of Deflux and Solesta, Wells Fargo has increased its 2012 EPS estimate from $2.42 to $2.53. The firm is also increasing its total sales estimate for 2012 from $689 million to $739 million.
Management announced positive Phase III results for oral methylnaltrexone and noted it plans to submit the NDA in mid-2012. The firm highlights these recent results offer more insight that this could be a top growth driver over the long-term.
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 $47.72 yesterday.
Completion of the Oceana Therapeutics acquisition for $300 million in cash, which the company had on hand, is good news for the company as management expects it to be modestly accretive to its 2012 results. The company received both Deflux and Solesta from the acquisition, and while Deflux is expected to see $36 million in total sales for 2011, SLXP forecasts Solesta could have sales top $500 million during its peak year.
An analyst at Wells Fargo comments, "We believe the addition of Oceana helps bolster SLXP’s product portfolio, and the Solesta launch should significantly benefit from SLXP's marketing expertise and resources in the gastroenterology space."
To account for the contribution of Deflux and Solesta, Wells Fargo has increased its 2012 EPS estimate from $2.42 to $2.53. The firm is also increasing its total sales estimate for 2012 from $689 million to $739 million.
Management announced positive Phase III results for oral methylnaltrexone and noted it plans to submit the NDA in mid-2012. The firm highlights these recent results offer more insight that this could be a top growth driver over the long-term.
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 $47.72 yesterday.
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