Salix Sinks In Pre-Market Friday On Disappointing Outlook, Q2 Results

Salix Pharmaceuticals Ltd. SLXP fell in pre-market action Friday on a disappointing outlook and second-quarter results. Net income for the recent period plunged on big charges for acquisitions, while revenue growth was hurt as wholesalers adjusted their inventories following Salix's $2.6 billion acquisition of Santarus earlier this year. Chief Financial Officer Adam Derbyshire told investors after the bell Thursday that the inventory adjustments will continue to hurt revenue in the third quarter. "However, we expect to see a strong fourth quarter," Derbyshire said. Salix forecast third-quarter revenue of $395 million, while analysts expected $405.3 million. Its adjusted income guidance for the third quarter missed expectations by 14 percent. In the recently ended second quarter, revenue grew 61 percent to $382 million, but was more than 4 percent below the Wall Street consensus. Adjusted earnings of $1.59 a share were nearly 10 percent below expectations. Salix last month said it will acquire a unit of Cosmo Technologies Ltd. and move its headquarters to Ireland for tax purposes. In pre-market trading recently Salix was down 2.6 percent at $130.06 a share.