Salix Pharmaceuticals, Ltd.: SWOT Analysis & Company Profile by BusinessReview

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									Salix Pharmaceuticals, Ltd.

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Salix Pharmaceuticals, Ltd.: SWOT
Analysis & Company Profile


Reference code: BRPH129CP10-Q4

Published: Nov 2010




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Salix Pharmaceuticals, Ltd. - SWOT Profile                                          Page 1
Salix Pharmaceuticals, Ltd.

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Salix Pharmaceuticals, Ltd. - Company Overview

Salix Pharmaceuticals, Ltd. (Salix) is a pharmaceutical company focusing on licensing, developing and marketing
products to healthcare professionals to prevent and treat gastrointestinal disorders. The company entered into licensing
agreement with Lupin Ltd., a pharmaceutical company, for the US rights over the Bioadhesive Technology used for
Rifaximin and also for supply of Rifaximin API. The company is headquartered at Morrisville in North Carolina, the US.


Financial Performance

The company reported revenues of (U.S. Dollars) USD 232.89 million during the fiscal year ended December 2009, an
increase of 30.28% over 2008. The operating loss of the company was USD 40.11 million during the fiscal year 2009, as
compared to an operating loss of USD 46.66 million during 2008. The net loss of the company was USD 43.62 million
during the fiscal year 2009, as compared to a net loss of USD 47.61 million during 2008.




Salix Pharmaceuticals, Ltd. - Key Facts

Salix Pharmaceuticals, Ltd., Key Facts

                                  1700, Perimeter Park Drive,

Corporate Address:                Morrisville, North Carolina (NC), Ticker Symbol, Stock       SLXP (NASDAQ)
                                                                    Exchange
                                  27560, United States


Telephone                         + 1 919 8621000                   No. of Employees           395



Fax                               + 1 919 8621095                   Financial Year End         December



URL                               www.salix.com                     Revenue (in USD Million)   232.89



Industry                          Pharmaceuticals and Healthcare



Locations                         United States

Source: Annual Report, Company Website, Primary and Secondary Research




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Salix Pharmaceuticals, Ltd. - SWOT Profile                                                                      Page 2
Salix Pharmaceuticals, Ltd.

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Salix Pharmaceuticals, Ltd. - Business Description

Salix is a specialty pharmaceutical company incorporated in Delaware. It principally develops and markets the prescription
drugs for the treatment of gastrointestinal diseases. The company operates in a single reportable business segment
named pharmaceutical segment.

The products offered by the company include Xifaxan, Colazal, OsmoPrep, Visicol, and Azasan. The Xifaxan is a rifaximin
tablets and is used for the treatment of travelers' diarrhea. The Colazal is balsalazide disodium capsules used for the
treatment of ulcerative colitis. The OsmoPrep and Visicol is a sodium phosphate monobasic, USP, and sodium phosphate
dibasic anhydrous, USP Tablets and are used in preparation for colonoscopy in adults. The Azasan is an azathioprine
tablet for preventing rejection of kidney transplants, and also used in treatment of severe arthritis.

The company’s Anusol-HC and Proctocort cream products are used in inflamed hemorrhoids and postirradiation proctitis.
They are as well used as an adjunct in the treatment of chronic ulcerative colitis and other inflammatory conditions.

The company acquired the US rights of Pepcid Oral Suspension and Diuril Oral Suspension product lines from Merck &
Co. In addition, the company has collaborative agreements with aaiPharma, Alfa Wassermann, Debiopharm Group,
Biorex Laboratories, Cedars-Sinai Medical Center, Dr. Falk Pharma, Menarini Pharmaceutical Industries, Merck & Co and
King Pharmaceuticals.

In 2009 the company has spent USD 89.5 million on research and development 6.9 percent increase when compared with
2008.
The company markets its products to U.S. gastroenterologists and other physicians through its own direct sales force. It
has around 150 people involved in sales and marketing. The company carries out its operations through its wholly owned
subsidiaries namely Salix Pharmaceuticals and Glycyx Pharmaceuticals.

In 2010 the U.S. Food and Drug Administration (FDA) has granted marketing approval for XIFAXAN® (rifaximin) 550 mg
tablets. These tablets are used for redusing risk of hepatic encephalopathy (HE) recurrence in patients above 18 years
age. Hepatic Encephalopathy is a serious disorder caused by chronic liver failure, resulting in cognitive, psychiatric and
motor failure.




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Salix Pharmaceuticals, Ltd. - SWOT Profile                                                                       Page 3
Salix Pharmaceuticals, Ltd.

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Salix Pharmaceuticals, Ltd. - Major Products and Services

Salix is involved in the development and marketing of prescription drugs, which are used in the treatment of
gastrointestinal diseases. The company's key products include the following:

Salix Pharmaceuticals, Ltd., Major Products and Services
Products:

Marketed products:

Anusol-HC (hydrocortisone)

Anusol-HC suppository (hydrocortisone)

Azasan (azathioprine)

Colazal (balsalazide )/Colazide Diuril (chlorothiazide)

IB-Stat (hyoscyamine sulfate)

MoviPrep OsmoPrep/Diacol Pepcid (famotidine)

Proctocort Cream (hydrocortisone)

Proctocort Suppositories (hydrocortisone acetate)

Visicol Xifaxan (rifaximin)

Clinically Developed Products:

INKP-102 Granulated Mesalamine Sanvar (vapreotide acetate)
Source: Annual Report, Company Website, Primary and Secondary Research




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Salix Pharmaceuticals, Ltd. - SWOT Profile                                                                     Page 4
Salix Pharmaceuticals, Ltd.

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Salix Pharmaceuticals, Ltd. - History

Salix Pharmaceuticals, Ltd., History

   Year                 Event type                                               Description


                                            On september 8 2009 the company has received FDA Marketing Approval for
   2009    New Product Approvals            Metozolv™ ODT (Orally Disintegrating Tablets) for Relief of Diabetic Gastroparesis and
                                            Symptomatic Documented GERD


                                            On September 30, 2009 Salix and Lupin have entered into a development,
                                            commercialization and license agreement under which the two companies will
                                            collaborate in the development and commercialization of a product incorporating
   2009    Contracts/Agreements
                                            rifaximin and utilizing Lupin's proprietary technology. Lupin Ltd has granted Salix the
                                            exclusive right in the United States to its bioadhesive drug delivery technology for use
                                            with rifaximin.


                                            November 23, 2009 the company completed public offering of 5,500,000 shares of its
   2009    Stock Listings/IPO
                                            common stock at a price of $21.00 per share.


                                            In 2008, the company's product APRISO hasbeen approved by FDA for Maintenance of
   2008    New Product Approvals
                                            Remission of Ulcerative Colitis.


                                            On May 14 2008, the company Commenced Patent Infringement Litigation Against
   2008    Litigation
                                            Novel Laboratories.


   2008    Acquisitions/Mergers/Takeovers on 13 March 2008, the company Acquired Budesonide Products from Dr. Falk Pharma.


                                            The company licensed exclusive rights to market Diacol 1500 mg Tablets in 28
   2007    Contracts/Agreements
                                            territories in Europe to Dr. Falk Pharma in 2007.


                                            In 2007, the US Patent and Trademark Office issued a patent (No. US 7,169,381),
   2007    Regulation/Gove
								
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