Investopedia: Salix Proves There Is Still Growth In Pharma

For those investors bored or disgusted with the current theme in Big Pharma of minimal top-line growth and mass firings, maybe Salix Pharmaceuticals (Nasdaq:SLXP) can be an antidote. As Salix is ably demonstrating these days, it is still possible to launch new drugs and see solid growth as a result. Of course, Salix has the benefit of a tiny base from which to grow, but in a pharma world that is starved for growth, Salix may be looking increasingly appetizing. 

An OK End to the Fiscal Year
Salix reported respectable results for the fourth quarter. Sales rose 69% from last year, as revenue from Xifaxan soared and has quickly become 70% of the company's overall business. The company saw a decent improvement in product gross margins and operating income reversed from a year-ago loss.

Looking out into 2011, management guided to $520 million in revenue - a level that was a bit lower than the Street's old number, but still representing over 50% year-on-year growth. (For more, see Can Earnings Guidance Accurately Predict The Future?)


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