Salix, which is attempting to fight off a hostile takeover by Canadian-based Axcan, reported encouraging test results on its drug rifaximin on Monday.

Salix said the drug, for which they have filed a new drug application with the FDA, did not create bacterial resistance when used to treat travelers’ and bacterial diarrhea. Salix said it is working with the FDA to finalize approval of the drug.

“We are proceeding as planned with the development of rifaximin and anticipate launching immediately upon final FDA approval,” said Carolyn Logan, president and chief executive officer of Salix, in a statement.