Salix shares rise as 4Q loss narrows

Shares of Salix Pharmaceuticals Ltd. rose Wednesday after the company reported a narrowed fourth-quarter loss on surging product sales.

The stock gained 89 cents, or 9.8 percent, to reach $7.54 in afternoon trading. Shares have traded between $5.07 and $10.47 over the last 52 weeks.

Late Tuesday, the company said it lost $10.5 million, or 22 cents per share, compared with a loss of $19 million, or 40 cents per share, during the same period a year prior. Revenue surged to $60.6 million from $39.5 million.

The company's fourth-quarter results include a $5 million upfront payment to Napo Pharmaceuticals for the acquisition of crofelemer, a developing treatment for chronic diarrhea in HIV patients.

Analysts polled by Thomson Reuters expected a loss of 13 cents per share on revenue of $58.3 million.

During the quarter, revenue from the antibiotic Xifazan rose 40 percent to $23.8 million. Meanwhile, revenue from bowel cleansing products rose 63 percent to $21.4 million. The company has been facing generic competition with its ulcerative colitis drug Colazal and did not release fourth-quarter sales figures for the drug.

For the full year, the company lost $47.4 million, or 98 cents per share, compared with profit of $8.2 million, or 17 cents per share, in 2007. Revenue fell to $178.8 million from $235.8 million.

Looking ahead, the company expects product revenue between $230 million and $235 million in 2009, excluding revenue from Metozolv, which is still under regulatory review. Analysts expect revenue of $234.7 million.

During the first quarter, Salix expects a loss between 37 cents and 38 cents per share on revenue between $46 million and $47 million.