Salix’s revenue trends
Bausch Health (BHC) subsidiary Salix Pharmaceuticals generated revenues of $863.0 million in the first half of this year, compared to $689.0 million in the first half of 2017. This trend reflects ~25.0% organic growth.
Salix Pharmaceuticals’ net revenues grew from $387.0 million in the second quarter of 2017 to $441.0 million in the second quarter, reflecting ~14.0% organic YoY (year-over-year) growth. The strong growth in its sales of Xifaxan was a primary contributor to Salix Pharmaceuticals’ revenue growth.
Profit margin and expenditures
Salix Pharmaceutical’s gross profit increased from $318.0 million in the second quarter of 2017 to $377.0 million in the second quarter, reflecting ~19.0% YoY growth. Salix Pharmaceuticals’ gross margin also grew from 82.0% in the second quarter of 2017 to ~86.0% in the second quarter.
Salix Pharmaceuticals’ selling, advertisement, and promotional expenditure declined to $66.0 million in the second quarter from $73.0 million in the second quarter of 2017. Salix Pharmaceuticals had G&A (general and administrative) and R&D (research and development) expenditures of $13.0 million and $5.0 million, respectively, in the second quarter.
In September, Salix Pharmaceuticals and its partner Norgine BV announced the launch of Plenvu in the US market. In May, the FDA approved Plenvu for cleaning the colon prior to colonoscopy procedures. Plenvu is a prescription medication.
In September, Salix Pharmaceuticals entered into an exclusive license agreement with Dova Pharmaceuticals for the co-promotion of Dova Pharmaceuticals’ Doptelet in the US market. In May, the FDA approved Doptelet for the treatment of individuals with thrombocytopenia and chronic liver disease. Salix Pharmaceuticals plans to deploy around 100 sales specialists for the co-promotion of Doptelet.