Salix 3Q Loss Widens On Higher Costs

RALEIGH, N.C. (AP) — Salix Pharmaceuticals Ltd. said Monday its loss widened in the third quarter on increased research and development and sales costs.

The company lost $7.3 million, or 15 cents per share, compared with a loss of $5.4 million, or 11 cents per share, during the same period a year prior. Revenue rose 53 percent to $65.7 million from $42.9 million.

Analysts polled by Thomson Reuters expected a loss of 29 cents per share on revenue of $60.4 million.

Revenue from Xifaxan, which is approved to treat traveler's diarrhea, doubled to $42.7 million. Sales of the bowel cleansing products Osmoprep and Moviprep rose to $16.4 million from $14.8 million.

The company said its costs and expenses rose 49 percent to $71.5 million on increases in sales costs and in research spending.

Salix expects a loss of about 90 cents per share and product revenue of $230 million for the full year. Analysts polled by Thomson Reuters expect a loss of 92 cents per share on revenue of $230.2 million.

Shares of Salix gained 16 cents to $21.30 in after-hours trading after rising 20 cents to close at $21.14 during the regular trading session.