Goldman Initiating Coverage On Salix Pharmaceuticals (SLXP)

Goldman Sachs is initiating coverage on Salix Pharmaceuticals, Ltd. (NASDAQ: SLXP) with a Conviction Buy and a $58 price target on shares.

In a note sent to clients, Goldman writes, "We initiate on SLXP shares as Conviction Buy and view Salix as the most compelling small-cap growth story across our Healthcare coverage. New indications for Xifaxan, its gut selective antibiotic, place the product on track to achieve sales greater than $1 billion, driving total company sales in our model to over $1.5 billion by 2015, from $232 million in 2009. Our survey of gastroenterologists, discussions with physicians, and extensive market analysis give us confidence that the opportunities in irritable bowel syndrome (IBS) and hepatic encephalopathy (HE) are very real, and the next twelve months will be key to validating these opportunities."

Shares of SLXP gained 15 cents on Friday to close at $42.05.