Salix Pharmaceuticals reported late Thursday fourth-quarter earnings that beat Wall Street estimates, and the Raleigh company forecasts that revenue will top a billion dollars this year.
Revenue increased 30 percent in the fourth quarter to $257.6 million, which beat the $247.1 million that was the consensus among Wall Street analysts who cover the company, according to Bloomberg. Non-GAAP earnings per share was $1.06 cents, well above the 93 cents forecast by analysts.
For the year, Salix reported revenue of $933.8 million, up 27 percent from 2012. Salix expects revenue this year to be $1.6 billion.
Salix sells drugs to treat gastrointestinal ailments. The company’s revenue growth is being driven by sales of its best-selling drug Xifaxan, which is approved to treat travelers’ diarrhea and a rare liver condition. Company recorded a record number of prescriptions for Xifaxan in December, and revenues for the quarter from the drug were $175.8 million, a 19 percent increase over the same period in 2012.
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“We enter 2014 with strong momentum in our core Xifaxan franchise and greater resources to pursue expanded opportunities for all of our currently marketed products,” CEO Carolyn Logan said in a statement.
Salix also announced Thursday morning that it has licensed the worldwide rights to a bowel preparation product from Israel-based RedHill Biopharma.
The deal includes an upfront payment of $7 million and $5 million in subsequent milestone payments to RedHill, plus royalties on net sales.
In addition to licensing RHB-106, which is used to prepare and cleanse the gastrointestinal tract before a colonoscopy and other procedures, Salix also gets the rights to other purgative developments. RHB-106 has not yet been approved for use in this country.
Salix shares closed Thursday at $109.84, up $1.56. The stock is up 22 percent this year.
Staff writer David Bracken