Allergan is looking at potential acquisitions to prevent a hostile takeover from Valeant Pharmaceuticals and reportedly has approached Salix Pharmaceuticals and at least one other firm about a takeover. A deal between Salix (SLXP) and Botox maker Allergan (AGN) could happen as early as September, sources told the Wall Street Journal. But Salix, which makes medicine for gastrointestinal problems, is merging with a unit of Italy’s Cosmo
IBD 50 stock Salix Pharmaceuticals missed expectations with its second-quarter report late Thursday, ending a disappointing day for several large specialty-drug makers. Salix (SLXP) said earnings more than doubled vs. the year-earlier quarter to $1.59 a share, missing analysts’ consensus by 13 cents. Sales rose 62% to $382 million, some $17 million below analysts’ estimates. Full-year guidance was also light. Salix forecast revenue at $1.6
Salix Pharmaceuticals (SLXP), which announced its tax inversion merger last month, will be among several IBD 50 drug stocks to report earnings this week. In July, Salix announced plans to merge with Italy’s Cosmo Pharmaceuticals’ Irish subsidiary, Cosmo Technologies. The new headquarters will be in Ireland, which boasts lower taxes than the U.S. Both drug companies focus on finding treatments for gastrointestinal diseases. Inversions have been