Piper Jaffray Reports Salix Pharmaceuticals Not Alarmed By NEJM Letters

According to Piper Jaffray, Salix Pharmaceuticals SLXP is not alarmed by the letter to the NEJM. Piper Jaffray reported that the April 14, 2011 issue of the New England Journal of Medicine (NEJM) featured two letters to the editor expressing misgivings regarding Xifaxan in non-constipation irritable bowel syndrome (non-C IBS). “The letters expressed concern regarding the high placebo effect seen and the potential for antibiotic resistance. That said, our checks suggested that gastroenterologists are highly comfortable with Xifaxan's efficacy and safety profile, particularly in the context of the dearth of treatments available for non-C IBS (refer to our note regarding our physician survey from 3/14/11 for more details). We believe that usage of Xifaxan in IBS is likely to remain steady or even grow, and expect that the overall growth trajectory of the Xifaxan franchise will continue to be robust. We reiterate our Overweight rating and $39 PT on SLXP.” Salix Pharmaceuticals closed yesterday at $37.32.