Salix Pharmaceuticals (Nasdaq: SLXP finished 2007 in the red, and the company blamed the launch of three generic drugs for the red ink.
Salix, a developer of gastrointestinal drugs, took a $34.6 million charge, resulting in a $13.9 million loss for the year. The charge resulted in a fourth quarter loss of $19 million, or 40 cents per share.
Salix revenues declined to $39.1 million in the fourth quarter compared to $62.6 million a year earlier. Revenues did increase to $232.9 million for all 2007 compared to $208.5 million in 2006.
The generics led Salix to take a write off in potential profits for its drug Colazal. However, Salix did report $2.2 million sales for its own generic version of Colazal.
Salix forecast revenues of $180 million in 2008 and said it expected a loss of $1.12 per share with $88 million committed to research and development. The company does have several drugs under development, including an irritable bowel syndrome drug that is in Phase III clinical trial.
“We continue to be focused on executing our long-term strategy to build our revenue by expanding the indications for our current products and securing additional products, and then leveraging our industry-leading sales force to sell these patent-protected products to our targeted universe of high-prescribing physicians,” said Salix Chief Executive Officer Carolyn Logan.
Logan noted that Salix could receive FDA approval for three drugs over the next two years.