Salix Pharmaceuticals to raise $55 million
This article was originally published in Scrip
Salix Pharmaceuticals priced an offering of $55 million convertible senior notes to institutional buyers due in 2028. The gastrointestinal (GI) drug developer plans to use the offering to develop and commercialise candidates and new indications for rifaximin, as well as for in-licensing and acquisitions and general working capital. Rifaximin is a non-systemic, GI-selective oral antibiotic and is used in several GI conditions including Crohn's disease, irritable bowel syndrome, and infectious diarrhoea. The product had second-quarter sales of $14 million (+18%), while the firm's revenues were $41.1 million, down by 38% because of the launch of an authorised generic version of Colazal (balsalazide disodium).