Salix Expecting $1B In Sales For Xifaxan

Re: Salix Pharmaceuticals, Ltd. (NASDAQ: SLXP), it is reported by Piper Jaffray that "Though there is lingering anxiety on the Street regarding the potential for an advisory committee meeting to discuss the Xifaxan NDA filing in non-constipation irritable bowel syndrome (IBS), we continue to believe that a panel meeting is unlikely and expect that the FDA will approve Xifaxan for IBS around the December 7 action date. Further, SLXP has noted that panel meetings tentatively scheduled for November 4 and 5 by the FDA's Gastrointestinal Drugs Advisory Committee (GDAC) are not related to Xifaxan (per management's recent conversations with the agency). We continue to believe that Xifaxan is the most exciting brand opportunity in specialty pharma, with peak sales potential well in excess of $1B. We reiterate our Overweight rating and $58 price target."

Piper Jaffray currently has a $58 price target for Salix Pharmaceuticals, which closed yesterday at $41.62.