Salix Pharmaceuticals says 2005 revenues up 52% to $154.7 million

By Angela McDaniels

Seattle, Feb. 24 - Salix Pharmaceuticals Ltd.'s product revenues increased by 52% to $154.7 million for the fiscal year ended Dec. 31, according to a news release.

Product revenues increased by 76% to $50.7 million for the fourth quarter ended Dec. 31 from $28.9 million for the fourth quarter of 2004.

The company attributed these year-over-year increases to the addition of Visicol to product sales and the introduction of two new sizes: Colozal 500-count bottle, which generated $7.4 million in the fourth quarter 2005, and Xifaxan 100-count bottle, which generated $5.7 million in revenue.

For 2006, Salix predicted $205 million in product revenue and non-GAAP earnings of at least $0.85 per share.

"We made major investments during 2005 in order to expand our product pipeline and to strengthen our sales infrastructure," chief financial officer Adam Derbyshire said in the release.

"We expect that in 2006 we will direct substantial funding toward product development. We believe that our focused and leveraged efforts should generate operating margins in excess of 30% in 2007 and increasing thereafter."

On a non-GAAP basis, fully diluted net income was $0.64 per share for the full year 2005 and $0.17 per share for the fourth quarter. GAAP fully diluted net loss was $1.55 per share for the year and $0.06 per share for the fourth quarter.

In 2005, the company said it experienced several charges related to the merger with InKine Pharmaceutical Co. Inc., licensing fees for NRL944, expenses associated with the acceleration of the vesting of unvested stock options and the write-off of Xifaxan finished goods inventory from the initial launch in July 2004.

Cash, cash equivalents and investments were $68.2 million on Dec. 31, up from $52.1 million on Dec. 31, 2004.

Salix is a pharmaceutical company based in Raleigh, N.C., that develops and markets prescription pharmaceutical products for the treatment of gastrointestinal diseases.

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