NEW YORK (TheStreet) -- Can it get any worse for shareholders of Salix Pharmaceuticals (SLXP) ? The company, which was once considered a potential takeover target by Allergan (AGN) , disappointed investors with its latest earnings report.

The company also disclosed that it has an accounting issue related to its inventories and Chief Financial Officer Adam Derbyshire is resigning. Shares were down 38% to $87.65 Friday morning on the slew of bad news. 

On CNBC's "Cramer's Mad Dash" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said CEO Carolyn Logan's comments about an "audit committee review" are concerning. 

SLXP Chart
Salix Pharmaceuticals SLXP data by YCharts

Obviously the company has committed some sort of violation, Cramer said, adding that the Securities and Exchange Commission will likely get involved. Cramer wondered if the accounting issue was simply a mismanagement of inventory or a deeper issue.

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.