Salix Pharmaceuticals Ltd. (SLXP: Quote) reported that its second-quarter net income was $20.13 million or $0.32 per share, compared to $19.25 million or $0.32 per share in the same quarter last year.
Non-GAAP net income was $50.09 million or $0.79 per share, up from $33.81 million or $0.54 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.55 per share for the quarter. Analysts' estimates typically exclude special items.
Net product revenues for the quarter rose to $181.01 million from $133.16 million in the prior year quarter. Fifteen analysts had consensus revenue estimate of $180.79 million for the quarter.
The company said its estimate of 2012 total Company product revenue remains approximately $735 million, representing 36% growth over 2011 revenue. However, the company said it increased its estimate of 2012 adjusted net income to approximately $183 million or $2.86 per share. Earlier, the company expected adjusted earnings of $2.59 per share for fiscal 2012. Analysts expect the company to report earnings of $2.65 per share on revenues of $742.26 million for fiscal 2012.
In a separate press release, Salix Pharmaceuticals and Alfa Wassermann S.p.A. announced that they have entered into an exclusive agreement by which Salix has licensed rights in the United States and Canada to an extended intestinal release or EIR formulation of rifaximin for gastrointestinal and respiratory indications, including Crohn's disease.
Financial terms of the transaction include a $10 million up-front payment and a $25 million development milestone payment upon NDA approval of an EIR formulation rifaximin product for Crohn's disease. Salix also will pay sales-based milestones in respect of EIR formulation rifaximin products for Crohn's disease, if sales targets are achieved, plus royalties on product sales of all EIR formulation rifaximin products. Alfa Wassermann will manufacture Salix's requirements of EIR formulation rifaximin products.
As per the new arrangements, Salix has provided Alfa Wassermann with rights to obtain a license to develop and commercialize, outside the United States and Canada for gastrointestinal and respiratory indications, formulations of rifaximin currently being developed by Salix and other new formulations of rifaximin that Salix may develop in the future.
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by RTT Staff Writer
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