Salix may get more pressure from generics

Salix Pharmaceuticals, which has seen sales of its best-selling drug hurt by competition from cheaper generics, disclosed that two more of its products may come under generic pressure.

Slower sales of Colazal, a treatment for ulcerative colitis, were responsible for Salix's second quarterly loss in a row this year, the Morrisville company reported Monday. The Food and Drug Administration approved generic alternatives for the drug Dec. 28, a move designed to reduce prices for consumers.

The losses the company projected for the rest of the year could deepen if the FDA also approves generic versions of MoviPrep and OsmoPrep, liquids patients drink before a colonoscopy.

Salix will use "all reasonable means at its disposal to ... vigorously defend and enforce the intellectual property rights protecting its products," Carolyn Logan, Salix's chief executive told analysts.

The company has already filed a patent infringement lawsuit against Novel Laboratories, a New Jersey company that wants to bring cheaper versions of MoviPrep and OsmoPrep to market.

For the second quarter, Salix reported a loss of $7.1 million, compared to $10.2 million in profit for the same period a year ago. The company, which specializes in gastrointestinal treatments, recorded revenue of $41.1 million for the quarter, down from $69.2 million a year ago.

Salix reported second-quarter financial results after the close of regular stock-market. Shares closed at $7.85 Monday, up 8 cents. The stock is down 33 percent in the past year.