NEW YORK ( TheStreet) -- Shares of Salix Pharmaceuticals (Nasdaq: SLXP) were gapping up Tuesday morning with an open price 10.3% higher than Monday's closing price. The stock closed at $43.23 Monday and opened today's trading at $47.70.

The average volume for Salix has been 987,300 shares per day over the past 30 days. Salix has a market cap of $2.58 billion and is part of the health care sector and drugs industry. Shares are down 7.9% year to date as of the close of trading on Monday.

Salix Pharmaceuticals, Ltd. acquires, develops, and commercializes prescription drugs for the treatment of gastrointestinal disorders in the United States. The company has a P/E ratio of 33.1, above the average drugs industry P/E ratio of 32.8 and above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Salix as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. You can view the full Salix Ratings Report.

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