How Is Salix Pharmaceuticals Positioned in November?

Revenue trends

Bausch Health’s (BHC) wholly owned subsidiary Salix Pharmaceuticals generated revenues of $460.0 million in the third quarter compared to $452.0 million in the third quarter of 2017, reflecting ~2% YoY growth. Xifaxan and Relistor primarily contributed to the revenue growth of Salix Pharmaceuticals in the third quarter. In the third quarter, Xifaxan and Relistor witnessed ~11% and 88% YoY organic revenue growth.

How Is Salix Pharmaceuticals Positioned in November?

Salix Pharmaceuticals reported a gross profit of $392.0 million in the third quarter, reflecting ~8% YoY growth. Salix Pharmaceuticals reported a gross margin of 85% in the third quarter of this year compared to ~81% in the third quarter of 2017.

Mallinckrodt (MNK) and Endo International (ENDP), Salix Pharmaceuticals’ peers in the biopharmaceuticals market, generated revenues of $640.0 million and $745.47 million, respectively, in the third quarter, reflecting ~19.39% and ~5.26% YoY declines.

Expense trends

Salix Pharmaceuticals reported SA&P (selling, advertisement, and promotional) expenses of $72.0 million. Salix Pharmaceuticals’ SA&P expenditure remained flat in the third quarter of this year compared to the third quarter of 2017.

Salix Pharmaceuticals reported general & administrative and research & development expenses of $13.0 million and $3.0 million, respectively, compared to $12.0 million and $3.0 million in the third quarter of 2017. Salix Pharmaceuticals’ net operating expenses amounted to $88.0 million in the third quarter of this year compared to $87.0 million in the third quarter of 2017.

EBITA trends

Salix Pharmaceuticals reported non-GAAP (generally accepted accounting principles) EBITA (earnings before tax interest and amortization) of $304.0 million in the third quarter compared to $277.0 million in the third quarter of 2017, reflecting ~10% YoY growth.

Salix Pharmaceuticals reported a non-GAAP EBITA margin of 66% in the third quarter compared to 61% in the third quarter of 2017.