Salix reports $19 million loss
Published: Mon, Mar. 03, 2008 04:17PM
Modified Mon, Mar. 03, 2008 04:20PM
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closeSalix Pharmaceuticals, which has seen its stock drop more than 50 percent in the past year, reported a fourth-quarter loss this afternoon.
Salix shares have fallen as investors have grown increasingly worried that generic rivals will hurt sales of the Morrisville company’s biggest product, a treatment for a type of gastrointestinal inflammation.
The drug, Colazal, is used to treat ulcerative colitis. Federal regulators in December approved generic versions of the drug, which are cheaper for patients.
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Salix lost $19 million during the three-month period ended Dec. 31, reversing net income of $13.9 million a year earlier.
One big factor contributing to the loss: The company took a $34.6 million charge during the quarter related to the introduction of generic competition to Colazal. The charge reflects the write-off of the value of existing inventory in anticipation of decreasing demand.
Fourth-quarter revenue fell 38 percent to $39.1 million.
Salix is trying to boost revenue from other treatments for gastrointestinal disorders to offset slowing sales of Colazal.
The company released its latest results after the close of regular stock-market trading, when the stock fell 22 cents to close at $6.53. The shares are down 51 percent in the past year.
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