Salix Pharma Q4 Net Loss Narrows

Total product revenue was $70.2m, a 16% increase compared to $60.6m for the fourth quarter of 2008. Total product revenue for full year 2009 was $232.9m compared to $178.8m for the full year 2008, a year-over-year increase of 30%.

Research and development expenses were $19.9m for the fourth quarter of 2009 and $89.5m for the full year 2009, compared to $26.4m and $83.7m, respectively, for the prior year periods.

Adam Derbyshire, EVP and CFO, said: “Significant increases in revenue for both XIFAXAN and our bowel cleansers resulted in a 30% year-over-year increase in total product revenue for 2009, in line with previously stated revenue guidance.

“We believe 2010 total Company product revenue, assuming a timely approval of XIFAXAN 550 mg for hepatic encephalopathy, will be approximately $334 million, and that we will be able to generate approximately $0.04 in earnings per share, fully diluted, for the full year ending December 31, 2010. This 2010 revenue guidance represents 43% growth over 2009 revenue. The current annualized run rates, based on dollarizing the latest prescription data for XIFAXAN, our bowel cleansing product line, APRISO and our “other products” are approximately $125m, $84m, $19m and $35m, respectively.

Carolyn Logan, president and CEO of the company, said: “2009 was one of the most exciting and rewarding years in the company’s history to date as we continued to achieve success in both the commercial and product development areas of our business.

“We look forward to continued growth and expansion during 2010 and beyond. We plan to continue to execute our business strategy by in-licensing late-stage and marketed products, developing the products in our pipeline and ensuring that our marketed products are provided with the attention and support required to achieve success.”