After completing a review of inventory issues that inflated sales figures for some of its products, Salix is going to tell it like it is. The company will restate its financial reports for the last 7 quarters, a move it thinks will put the issue to rest.
Salix Pharmaceuticals, marred by an embarrassing inventory scandal, has hired an investment bank to help it find some strategic alternatives, Reuters reports, including an outright sale.
Salix Pharmaceuticals is officially in rescue mode. Haunted by an inventory snafu and a C-suite shakeup, and under investor pressure to consider a sale, the company has hired investment bank Centerview Partners to help weigh its options.
On Monday afternoon, CEO Carolyn Logan became the second C-suite executive at Salix Pharmaceuticals to step down in the wake of an inventory snafu disclosed late last year. Logan will retire as of Jan. 30, the company said.
Salix is working quickly to get some inventory issues under control after bidding farewell to its CFO and launching an audit committee review. But as soon as it does, some shareholders want the North Carolina drugmaker to put itself on the block.
Back in November, Salix revealed some inventory issues that had skewed perceived demand for some of its products--and possibly cost it a deal with Allergan in the process. Now, the company says it's moving to fix the problem quickly. But in the meantime, its top line will pay the price.
At one time, Allergan was so confident it could lock up an acquisition of Salix Pharmaceuticals to thwart Valeant's hostile bid that it reportedly snubbed potential white knight Actavis when it came calling. But those talks have long since stalled, and now, Salix is investigating an inventory blip that The Wall Street Journal 's sources say was a dealbreaker.
Chalk up a victory for the U.S. Treasury Department, whose new rules put the kibosh on Salix Pharmaceuticals' tax inversion deal for Cosmo's Irish unit. Instead, the North Carolina company is reportedly in talks to sell itself--but to Actavis, not Allergan.
Specialty drugmaker Salix Pharmaceuticals is backing out of a $2.7 billion deal that would have given it an Irish domicile--and thus a lower tax rate--in the first victory for U.S. leaders working to discourage such transactions.
Salix Pharmaceuticals nabbed the new Relistor approval it was counting on. The FDA blessed the injectable drug as a treatment for all patients with constipation caused by opioid pain relievers, boosting its target market more than tenfold.