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Salix Pharmaceuticals Reports 1Q2012 Results

Salix markets XIFAXAN ® (rifaximin) tablets 200 mg and 550 mg, MOVIPREP ® (PEG 3350, Sodium Sulfate, Sodium Chloride, Potassium Chloride, Sodium Ascorbate and Ascorbic Acid for Oral Solution), OSMOPREP ® (sodium phosphate monobasic monohydrate, USP and sodium phosphate dibasic anhydrous, USP) Tablets, VISICOL ® (sodium phosphate monobasic monohydrate, USP, and sodium phosphate dibasic anhydrous, USP) Tablets, APRISO™ (mesalamine) extended-release capsules 0.375 g, METOZOLV ® ODT (metoclopramide HCl), RELISTOR ® (methylnaltrexone bromide) Subcutaneous Injection, SOLESTA ®, DEFLUX ®, PEPCID ® (famotidine) for Oral Suspension, Oral Suspension DIURIL ® (Chlorothiazide), AZASAN ® (Azathioprine) Tablets, USP, 75/100 mg, ANUSOL-HC ® 2.5% (Hydrocortisone Cream, USP), ANUSOL-HC ® 25 mg Suppository (Hydrocortisone Acetate), PROCTOCORT ® Cream (Hydrocortisone Cream, USP) 1% and PROCTOCORT ® Suppository (Hydrocortisone Acetate Rectal Suppositories) 30 mg. Crofelemer, budesonide foam, RELISTOR ® , Lumacan ® and rifaximin for additional indications are under development.

For full prescribing information and important safety information on Salix products, including BOXED WARNINGS for VISICOL, OSMOPREP and METOZOLV, please visit www.salix.com where the Company promptly posts press releases, SEC filings and other important information or contact the Company at 919 862-1000.

Salix trades on the NASDAQ Global Select Market under the ticker symbol “SLXP”.

For more information, please visit our Website at www.salix.com or contact the Company at 919-862-1000. Follow us on Twitter (@SalixPharma) and Facebook ( www.facebook.com/SalixPharma). Information on our Twitter feed, Face book page and web site is not incorporated in our SEC filings.

Please Note: The materials provided herein contain projections and other forward–looking statements regarding future events. Such statements are just predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially. These risks and uncertainties include, among others: the cost, timing and results of clinical trials and other development activities involving pharmaceutical products; post-marketing approval regulation; market acceptance for approved products; generic and other competition in an increasingly global industry; litigation and the possible impairment of, or inability to obtain, intellectual property rights and the costs of obtaining such rights from third parties in an increasingly global industry; the unpredictability of the duration and results of regulatory review of New Drug Applications and Investigational NDAs; revenue recognition and other critical accounting policies; and the need to acquire new products. The reader is referred to the documents that the Company files from time to time with the Securities and Exchange Commission.

Salix Pharmaceuticals, Ltd.        
Condensed Consolidated Statements of Operations

(In thousands, except per share data)

Three Months Ended
  March 31, March 31,
2012 2011
(unaudited) (unaudited)
Revenues:
Net product revenues $ 171,133     $ 105,897  
 
Costs and Expenses:
Cost of products sold 34,190 18,586
Amortization of product rights and intangible assets 11,345 2,237
Research and development 26,701 31,003
Selling, general and administrative   60,444       46,689  
Total costs and expenses 132,680 98,515
 
Income from operations 38,453 7,382
Loss on extinguishment of debt (14,369 ) -
Interest expense (8,814 ) (7,855 )
Interest and other income   3,893       824  
Income before income tax 19,163 351
Income tax expense   9,210       73  
 
Net Income $ 9,953     $ 278  
 
Income per share, basic $ 0.17     $ 0.00  
Income per share, diluted $ 0.15     $ 0.03  
Shares used in computing net income per share, basic   59,143       58,220  
Shares used in computing net income per share, diluted   66,304       65,456  
Reconciliation of GAAP Amounts to Non-GAAP Amounts:
(In thousands, except per share data)
 

We are disclosing our non-GAAP Condensed Consolidated Statements of Operations, as adjusted, to eliminate the impact of the $10.0 million Lupin payment that occurred in February 2011, the loss on extinguishment of debt and non-cash adjustments related to the repurchase of a portion of our 2028 Notes in March 2012, the difference between income taxes paid and income taxes expensed, and non-cash depreciation, amortization, stock-based compensation and convertible debt interest expenses that occurred in the three-month periods ended March 31, 2012 and 2011, respectively. We believe these non-GAAP measures might provide investors additional relevant information, in part for purposes of historical comparison. In addition, we use these non-GAAP measures to analyze our performance in more detail and with better historical comparability; however, you should be aware that non-GAAP measures are not superior to nor a substitute for the comparable GAAP measures. A reconciliation of our non-GAAP measures to the comparable GAAP measures follows.

      Three Months Ended       Three Months Ended
March 31,   March 31,   March 31, March 31,   March 31,   March 31,
2012

2012-Non-GAAP

Adjustments

2012-Non-GAAP

as adjusted

2011

2011-Non-GAAP

Adjustments

2011-Non-GAAP

as adjusted

 

(unaudited)   (unaudited)   (unaudited) (unaudited)   (unaudited)   (unaudited)
Revenues:
Net product revenues $ 171,133     $ -     $ 171,133     $ 105,897     $ -     $ 105,897  
 
Costs and Expenses:
Cost of products sold 34,190 - 34,190 18,586 18,586
Amortization of product rights and intangible assets 11,345 (11,345 ) - 2,237 (2,237 ) -
Research and development 26,701 (1,142 ) 25,559 31,003 (10,710 ) 20,293
Selling, general and administrative   60,444       (4,569 )     55,875       46,689       (2,840 )     43,849  
Total costs and expenses 132,680 (17,056 ) 115,624 98,515 (15,787 ) 82,728
 
Income from operations 38,453 17,056 55,509 7,382 15,787 23,169
Loss on extinguishment of debt (14,369 ) 14,369 - - -
Interest expense (8,814 ) 5,234 (3,580 ) (7,855 ) 4,660 (3,195 )
Interest and other income   3,893     (3,666 )   227       824       -       824  
Income before income tax 19,163 32,993 52,156 351 20,447 20,798
Income tax expense   9,210     (1,744 )   7,466       73       -       73  
 
Net Income, as adjusted $ 9,953     $ 34,737     $ 44,690     $ 278     $ 20,447     $ 20,725  
 
Income per share, basic $ 0.17     $ 0.59     $ 0.76     $ 0.00     $ 0.35     $ 0.36  
Income per share, diluted $ 0.15     $ 0.52     $ 0.67     $ 0.03     $ 0.31     $ 0.34  
Shares used in computing net income per share, basic   59,143       59,143       59,143       58,220       58,220       58,220  
Shares used in computing net income per share, diluted   66,304       66,304       66,304       65,456       65,456       65,456  
 
Salix Pharmaceuticals, Ltd.    
Condensed Consolidated Balance Sheets
(In thousands) March 31, December 31,
  2012 2011
(unaudited)   (audited)
Assets
Cash and cash equivalents $     665,867 $     292,814
Accounts receivable, net 193,200 151,207
Inventory, net 56,817 49,205
Other assets       828,216           819,743  
 
Total Assets $     1,744,100     $     1,312,969  
 
Liabilities and Stockholders' Equity
Accounts payable and other liabilities $     1,268,772     $     763,332  
Total liabilities 1,268,772 763,332
 
Common stock 58 59
Additional paid-in-capital 600,794 685,315
Other comprehensive loss 149 (111 )
Accumulated deficit       (125,673 )         (135,626 )
Total stockholders' equity       475,328           549,637  
 
Total Liabilities and Stockholders' Equity $     1,744,100     $     1,312,969  




Stock quotes in this article: SLXP 

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