Declan schreef op 6 januari 2015 18:11:
Is Salix Pharmaceuticals SLXP +0.90% edging closer to a sale?
That question is being raised now that Carolyn Logan, the Salix chief executive, will retire at the end of this month. For the moment, her job will be handled by Tom D’Alonzo, the Salix chairman, while a replacement is sought. But Wall Street is speculating that the runway for a deal is being cleared.
“We believe this is a logical end-game,” writes Piper Jaffray analyst David Ansellam in an investor note, who adds that he is not surprised by the changes.
How so? The retirement announcement, which was made late yesterday, comes amid a tumultuous time for the drug maker. Last November, you may recall, Salix stunned investors by disclosing that wholesaler inventory levels for its key drugs were much higher than previously signaled.
The disclosure prompted a 38% plunge in Salix shares and harsh criticism of management. The drug maker quickly replaced its chief financial officer and announced that a board committee would conduct a review. But the issue had reportedly scuttled interest that Allergan had in acquiring Salix.
Since then, Salix accelerated plans to reduce inventory levels and is now selling only minimal amounts of its drugs. At the same time, the drug maker revised its earnings guidance. But the announcement that Logan is departing is like another shoe dropping, according to Sterne Agee analyst Shibani Malhotra.
“The guidance provided potential acquirers greater clarity on Salix’s underlying earnings power, and this, coupled with the fact that the board has now taken over management of the company, could make Salix an easier target for potential acquirers, in our view,” she writes in an investor note.
She adds that Salix maintains Logan’s departure is unrelated to the ongoing review by the board’s audit committee. We asked Salix for comment about the timing of the departure, as well as search plans for a new ceo, and will update you accordingly.
Meanwhile, there is a potentially positive development on the horizon that may attract interest in Salix from potential acquirers. The FDA is scheduled to review its Xifaxan antibiotic, which is approved to treat a complication of liver disease, for irritable bowel syndrome with diarrhea.
As Ansellam notes, the eventual label expansion for the drug makes Salix “one of the rare companies in the broader specialty pharma space that has a long-duration asset with legitimate blockbuster potential.” For this reason, he thinks Salix will attract interest from both specialty and large drug makers.
All this helps explain why Salix shares are up more than 1% this morning.
Voor een heldere discussie leek het me raadzaam een aparte draad te maken.
Ruud..