Salix raising $50M to find new drug deals

With its revenue taking a nasty hit from new generic competition, Salix Pharmaceuticals says it will arm itself with a cache of $50 million from the sale of convertible notes to fund in-licensing deals or acquisitions. Salix's second quarter numbers plunged to $41.1 million in revenue, down from $69.2 million for the same period a year ago. That drop was due to new generic competition for the IBD treatment Colazal.

"Salix intends to use the net proceeds from the offering to fund potential product acquisition or in-licensing opportunities, to develop and commercialize product candidates and new indications for rifaximin and to provide ongoing working capital and for general corporate purposes," the company said in a statement.

- read the report in the Triangle Business Journal

Related Articles:
Salix buying InKine in $190M deal
Salix shares rise on new data, deals