Salix Pharmaceuticals, Ltd.
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Salix Pharmaceuticals, Ltd. Financial Snapshot
Operating Performance
Fast Facts
1700, Perimeter Park Drive, Morrisville, The company reported revenues of US$336.97 million
Headquarters Address
27560,United States of America during 2010, with a CAGR of 12.75% during 2006–
2010. Its revenue grew at an annual rate of 44.69%
Telephone + 1 919 8621000
over the previous fiscal year. In 2010, the company
recorded an operating margin of -1.83%, as against -
Fax + 1 919 8621095 17.22% in 2009.
Website www.salix.com
Revenue and Margins
Ticker Symbol, Stock Exchange SLXP, NASDAQ
Number of Employees 390
Fiscal Year End December
Revenue (in US$ million) 336.97
SWOT Analysis
Strengths Weaknesses Return on Equity
Dependence on third party The company recorded a return on equity (ROE) of -
Increasing sales of Xifaxan
manufacturers 6.73% for 2010, as compared to its peers, Abbott
Laboratories (Ticker: ABT), GlaxoSmithKline plc
Strategic collaborations Lawsuits (Ticker: GSK) and Teva Pharmaceutical Industries
Limited (Ticker: TEVA), which recorded ROEs of
Strong top-line performance 20.66%, 18.39% and 15.18% respectively. The
company reported an operating margin of -1.83% in
2010.
Opportunities Threats
Increasing healthcare expenditure in Return on Equity
Pricing of drugs
the US
New product developments Product liability
Tightening of the FDA‟s regulatory
Strategic agreement with Progenics
oversight
Liquidity Position
The company reported a current ratio of 5.47 in 2010,
as compared to its peers, Abbott Laboratories,
GlaxoSmithKline plc and Teva Pharmaceutical
Industries Limited, which recorded current ratios of
1.29, 1.25 and 1.24 respectively. As of December
2010, the company recorded cash and short-term
investments of worth US$518.03 million, against
US$0.40 million current debt. The company reported
a debt to equity ratio of 0.80 in 2010 as compared to
its peers, Abbott Laboratories, GlaxoSmithKline plc
and Teva Pharmaceutical Industries Limited, which
recorded debt to equity ratios of 0.85, 1.70 and 0.25
respectively.
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Salix Pharmaceuticals, Ltd. - SWOT Profile Page 1
Salix Pharmaceuticals, Ltd.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
1.4 Key Financial Performance Indicators ...................................................................................................................7
1.4.1 Revenue and Operating Profit ...........................................................................................................................7
1.4.2 Asset, Liabilities and Capex ...............................................................................................................................8
1.4.3 Operational Efficiency ........................................................................................................................................9
1.4.4 Solvency ..........................................................................................................................................................10
1.5 Competitive Benchmarking ..................................................................................................................................11
1.5.1 Market Capitalization .......................................................................................................................................12
1.5.2 Efficiency ..........................................................................................................................................................13
1.5.3 Capital Expenditure ..........................................................................................................................................14
1.5.4 Turnover – Inventory and Asset .......................................................................................................................15
1.5.5 Liquidity .............................................................