UPDATE: Piper Jaffray Color On SLXP PT Decrease

Piper Jaffray, which lowered its PT on shares of Salix Pharmaceuticals Ltd. SLXP, is providing some color on the stock. “With yesterday's weakness in the wake of the FDA setback on Xifaxan in non-constipation irritable bowel syndrome (IBS), we believe SLXP shares are trading at an attractive risk/reward,” Piper Jaffray writes. “Though we don't see a clear path forward for the IBS indication, we nonetheless are bullish on the growth trajectory of Xifaxan in hepatic encephalopathy (HE), and believe there will be continued off-label usage among gastroenterologists (GI) in IBS. “With high margins for Xifaxan and now fewer promotional requirements, we believe SLXP's earnings trajectory is still one of the most attractive in specialty pharma.” Salix Pharmaceuticals Ltd. closed Thursday at $31.61.