Salix Pharmaceuticals (NASDAQ:SLXP) reported good news from a phase 3 trial of Xifaxan in patients with irritable bowel syndrome with diarrhea (IBS-D), an additional potential indication for a drug that turned in nearly $650 million in sales last year.

Good news is nice, and given that analysts are estimating over $1 billion in annual peak sales for Xifaxan based on label expansions, it's nice to see good data coming through.

But is the stock a good investment? In the video below, Motley Fool health care analysts Michael Douglass and David Williamson give their take.

David WilliamsonMichael Douglass, and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.