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Salix Pharmaceuticals Reports 1Q2012 Results

Cash and cash equivalents were $665.9 million as of March 31, 2012

Adam Derbyshire, Executive Vice President and Chief Financial Officer, stated, “XIFAXAN 550 mg continued to perform well during the first quarter of 2012. During the quarter our XIFAXAN prescription business, comprised of XIFAXAN 200 mg tablets and XIFAXAN 550 mg tablets, demonstrated impressive growth, on a milligram basis, of 27% compared to the first quarter of 2011. APRISO also demonstrated strong prescription year-over-year growth of 36% for the first quarter of 2012 compared to the first quarter of 2011.

“We are revising our estimate of 2012 financial guidance to reflect the effect of the March 16, 2012 placement of $690 million of convertible senior notes. Additionally, our estimate of 2012 adjusted net income includes adjustments relating to the impact of the following non-cash items: loss on extinguishment of debt, depreciation, amortization, stock-based compensation, convertible debt discount amortization and the difference between income taxes paid and income taxes expensed.

2012 Guidance              
(In millions except per share data)

 

 

 

2012

GAAP

Guidance

2012

Adjustments

2012

As

Adjusted

Revenues:
Net product revenues $ 735     $ 735  
 
Costs and Expenses:
Cost of products sold 145 145
Amortization of product rights and intangible assets 42 (42 ) -
Research and development 140 (5 ) 135
Selling, general and administrative   269     (18 )   251  
Total costs and expenses 596 (65 ) 531
 
Income from operations 139 65 204
Loss on extinguishment of debt (14 ) 14 -
Interest expense (57 ) 37 (20 )
Interest and other income   12     (9 )   3  
Income before income tax 80 107 187
Income tax expense   38     (17 )   21  
 
Net Income $ 42   $ 124   $ 166  
 
Income per share, basic $ 0.72   $ 2.14   $ 2.86  
Income per share, diluted $ 0.66   $ 1.94   $ 2.59  
Shares used in computing net income per share, basic   58     58     58  
Shares used in computing net income per share, diluted   64     64     64  

“The current annualized run rates, based on dollarizing the March 2012 prescription data for XIFAXAN, our bowel cleansing products, APRISO, RELISTOR (U.S.), and our ’other products’, are approximately $442 million, $104 million, $71 million, $28 million, and $44 million, respectively. Based on the full year 2012 guidance provided above, for the second quarter of 2012 we anticipate total Company product revenue should be approximately $180 million and adjusted net income should be approximately $32 million, or $0.51 per share, fully diluted, on the non-GAAP basis described above.”

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