Salix Pharmaceuticals Ltd. (SLXP), Monday reported a wider net loss for the third quarter, as higher expenses offset the positive impact of higher revenue. The company also reaffirmed its outlook for fiscal 2009.
Salix Pharmaposted a net loss of $7.3 million or $0.15 per share for the third quarter of 2009, compared to a loss of $5.4 million or $0.11 per share in the prior year quarter. On average, 9 analysts polled by Thomson Reuters expected the company to report a loss of $0.29 per share for the third quarter. Analysts' estimates typically exclude special items.
Third quarter total product revenue soared 53% to $65.7 million from $42.9 million in the third quarter of 2008. Nine analysts had a consensus revenue estimate of $60.42 million for the third quarter.
As a percentage of sales, gross margin on total product revenue dropped to 79.9% from 81.9% in the previous year quarter.
Total costs and expenses increased 49% to $71.5 million from $47.9 million in the year-ago quarter.
For the nine-month period of 2009, the company reported a net loss of $36.6 million or $0.76 per share, compared to a loss of $36.5 million or $0.76 per share in the previous year period.
Net product revenue increased to $162.7 million from $118.2 million in the prior year period.
For the fourth quarter of 2009, the company anticipates a loss of about $0.14 per share, and total company product revenue of about $68 million. The Street currently estimates a loss of $0.03 per share on revenue of $72.28 million for the fourth quarter.
For fiscal year 2009, the company continues to expect a loss of $0.90 per share and total company product revenue to be about $230 million, representing 29% growth over last year. Analysts currently project a loss of $0.92 per share on revenue of $230.18 million for the year 2009.
SLXP closed Monday's regular trading session at $21.14, up 20 cents. In after-hours, the share further gained 16 cents.
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