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How Is Bausch Health’s Salix Pharmaceuticals Positioned?

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Revenue trends

Bausch Health Companies’ (BHC) wholly-owned subsidiary Salix Pharmaceuticals reported revenue of $441 million in the second quarter compared to $387 million in the second quarter of 2017, which reflected ~14% YoY (year-over-year) growth.

In the first half of 2018, Salix Pharmaceuticals reported revenue of $863 million compared to $689 million in the first half of 2017. The increase in sales of Xifaxan and Relistor primarily contributed to the company’s revenue growth in the first half of 2018.

In the second quarter, Xifaxan, the Relistor franchise, Apriso, and Uceris witnessed rises of ~26%, ~43%, ~3%, and ~3%, respectively, YoY. Salix expects to launch Plenvu in the third quarter.

In the second quarter, Xifaxan’s TRx (total prescription) unit volume grew 8% compared to the same period last year. Also in the quarter, Xifaxan’s NRx (new prescription) market share grew to 81% from 79% in the second quarter of 2017.

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Operational expenses and margin

In the second quarter, Salix Pharmaceuticals reported a gross profit and a gross margin of $377 million and 86%, respectively, compared to $318 million and 82%, respectively, in the second quarter of 2017.

In the second quarter, Salix Pharmaceuticals reported SA&P (selling, advertisement, and promotional) expenses of $66 million compared to $73 million in the same period last year, reflecting ~10% YoY growth.

In the second quarter, Salix Pharmaceuticals reported G&A (general and administrative) and R&D (research and development) expenses of $13.0 million and $5.0 million, respectively, compared to $12.0 million and $2.0 million, respectively, in the second quarter of 2017.

In the second quarter, Salix Pharmaceuticals reported non-GAAP (generally accepted accounting principles) EBITA and a non-GAAP EBITA margin of $293 million and 66%, respectively, compared to non-GAAP EBITA and a non-GAAP EBITA margin of $231 million and 60%, respectively, in the second quarter of 2017.

Salix Pharmaceuticals’ gastrointestinal drug peers Abbott Laboratories (ABT), Allergan (AGN), and Ironwood Pharmaceuticals (IRWD) reported revenues of $7.8 billion, $4.1 billion, and $81.11 million, respectively, in the second quarter.

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