Local Tech Wire

RALEIGH, N.C. – Shares in Salix Pharmaceuticals (Nasdaq: SLXP) surged more than 3 percent, or $1.37 per share, Monday on news that the Food and Drug Administration has granted a “priority review” for use of a Salix product.

Salix estimates that the non-constipation irritable bowel syndrome market targeted by its drug to be some $7 billion

Salix shares traded at $42.75 in late-morning trading. Salix announced the FDA decision shortly after the markets opened. Salix closed the day at $42.81.

After the markets closed Monday, Salix also reported a huge jump in quarterly product revenues to $93.8 million compared to $52.2 million a year ago.

For the complete earnings report,

The ruling concerns the new drug application for Xifaxan 550 milligram tablets to treat non-constipation irritable bowel syndrome and related bloating.

The FDA’s “action date” on the drug is Dec. 7, Salix said.

“This review classification signals that the FDA considers that XIFAXAN550 may have the potential to provide a significant advance in the treatment of non-constipation irritable bowel syndrome,” said Bill Forbes, chief development officer at Salix, in a statement.”

Forbes said Salix believes that Xifaxan 550 “has the potential to change the treatment paradigm” for non-constipation irritable bowel syndrome. IBS affects more than 30 million people in the U.S.

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