Salix Pharmaceuticals Ltd posted lower revenue and profit for the quarter, missing the average estimate of analysts.
The company shares dropped 35% in the after-hours trading. Salix also reported an 88.6 million dollar net loss or 1.39 dollars per share during the third quarter, which ended September 30, compared to the last year’s 47.3 million dollars net income or71-cent per share.
The company earnings were at 1.53 dollars per share, excluding special items, while its revenue jumped 49% to 335 million dollars.
On average, analysts forecasted the profit of 1.55 dollars per share on 392.4 million revenues, based on Thomson Reuters.
The company, on Thursday, cuts its full-year estimate, indicating that its inventory piled up for its key drug. According to experts, the Allergan, Inc.’s supposedly acquisition of Salix was put on hold due to the inventory issues.
Salix, make of bowel drug, said it has adequate stock that is good for at least 5 months, contrasting earlier statements that it has stock that can last for only weeks. There were $155 million inventory as of September 30, up by 50% since the beginning of the year.
The company now expects a $5.20 a share for its 2014 profit to $1.4 billion revenue, except special items. The average forecast of analysts was at $6.17 per share on $1.6 billion revenue.
Melissa Gansler
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