UPDATE: Sterne Agee Reiterates On Salix Pharmaceuticals Ltd. On FDA Panel Outcome

In a report published Friday, Sterne Agee analyst Shibani Malhotra reiterated a Buy rating on

, and raised the price target from $126.00 to $130.00. In the report, Sterne Agee noted, “The outcome of today's FDA Panel on mu opioid antagonists, although not conclusive, suggests that Salix likely has a path to approval for Relistor for the treatment of opioid-induced constipation in non-cancer pain patients. This could potentially add an incremental $500mn-$750mn in product sales. Per our calculations, each $100mn in Relistor sales equates to $2-$3 in fair value for SLXP. We expect further insight into the future of Relistor tomorrow, as Salix's partner on the drug, Progenics Pharmaceuticals (PGNX, $4.22, Not Rated) is hosting a call on this topic.” Salix Pharmaceuticals Ltd. closed on Thursday at $113.80.