Roth Capital Reaffirms Buy On Salix, Following Positive Weekly Update On Xifaxan


In a research report published today, Roth Capital analyst Scott Henry maintained a Buy rating on Salix Pharmaceuticals (NASDAQ:SLXP) with a $160 price target, following a positive weekly update on on Xifaxan.

In Henry’s weekly tracker of coverage of SLXP’s launch he wrote, “We view this week’s script data as positive. The key indicator for us is year-over-year change in total milligrams prescribed, which increased to a strong growth rate of 23% versus 21% the prior week (15% growth is our target for August – which is starting to look conservative).” 

Henry continued, “We build our Xifaxan revenue model based on monthly prescriptions and further validate this analysis with the weekly audit. For 3Q14, our monthly prescription forecast suggests Xifaxan revenues of ~$198 million that factors in $3M in wholesaler de-stocking.” The analyst added, “We continue to view Xifaxan prescriptions as the key driver for shares of Salix Pharmaceuticals and maintain our Buy rating.”  

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Scott Henry has a total average return of 22.5% and a 56.3% success rate. Henry has a 31.2% average return when recommending SLXP, and is ranked #155 out of 3289 analysts.

 

 

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