Salix Pharma. Drops In Premarket (SLXP)

Salix Pharmaceuticals (NASDAQ: SLXP) has dropped 18% in premarket trading. The stock this morning has been in a volatile trading range of $27 to $20. I believe this could be due to an upcoming decision by the FDA to negatively affect the Xifaxan drug that SLXP is looking to take to market.

Xifaxan is used as a treatment for neurological damage cause by liver failure. This is big news, because in the past week Salix Pharmaceuticals had been upgraded for a positive expectation from the FDA on the Xifaxan drug. Analysts had been expecting a price target of $40 if the drug were to be approved, as sales would double with it.