The more, the merrier? Endo also pursuing Salix Pharma bid
- With several companies, including Valeant, Shire, and now, according to Reuters, Endo potentially pursuing acquisition of NC-based Salix Pharmaceuticals, the besieged bowel-specialist company is in talks with advisors.
- Salix has a market capitalization of $9.5 billion.
- The company has faced several set-backs including the fact that wholesale inventory levels of its top-selling irritable bowel syndrome (IBS) drug, Xifaxin (rifaximin), were higher than reported and the company was forced to change earnings estimates. In addition, last month, Salix CEO, Carolyn Logan stepped down.
Last year, Salix was a potential buyout target for Allergan—but that deal never happened, presumably because of the Xifaxin inventory discrepancies.
Now, however, there are three potential bidders for Salix. While there is speculation that Valeant and Shire may choose not to formally bid, Endo is in acquisition mode—the company acquired Auxilium last October for $2.6 billion and Dava Pharmaceuticals last June for $600 million.
With Rajiv De Silva, who came from Valeant, heading up Salix, some onlookers are betting that Endo will pursue the acquisition.