UPDATE: Sterne Agee Reiterates On Salix Pharmaceuticals Ahead Of FDA Panel Vote

In a report published Thursday, Sterne Agee analyst Shibani Malhotra reiterated a Buy rating on Salix Pharmaceuticals Ltd. (NASDAQ: SLXP), and raised the price target from $126.00 to $130.00.

In the report, Sterne Agee noted, “We reiterate our Buy thesis on SLXP in front of the FDA panel vote, expected later this afternoon, regarding the use of Relistor as a possible treatment for opioid-induced constipation. A path to development can add around $6 to our fair value of $130 for SLXP, while a negative outcome should have little impact given the minimal expectations going into this event. We are more focused on the data from TARGET III for Xifaxan in IBS-D (early July) as a meaningful positive catalyst for the stock.”

Salix Pharmaceuticals Ltd. closed on Wednesday at $113.42.