Oppenheimer Has Outperform On Salix Pharmaceuticals (SLXP)

Oppenheimer & Co. has an Outperform rating and a $46 price target on shares of Salix Pharmaceuticals SLXP after it reported earnings. In a note to clients, Oppenheimer writes, "On 2/28, SLXP reported 4Q10 adjusted EPS of $0.64 compared to our estimate of $0.48. Importantly, total sales were in line with our $117M estimate. We believe SLXP is unlikely to continue to pursue approval of Xifaxan in IBS-D given the high costs associated with the additional trials the FDA may potentially request. However, we continue to expect modest growth in Xifaxan revenues from IBS-D and estimate 2011 revenues of $84M from IBS-D, representing ~30% of total Xifaxan sales. We maintain our Outperform rating and are updating our 2011 and 2012 estimates to reflect company guidance." Shares of SLXP lost 15 cents yesterday to close at $33.34, a loss of 0.45%.