Salix Pharmaceuticals Ltd Q3 2009 Earnings Call Transcript

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2009-11-09 18:00:30.0

Tags: Security, Wells Fargo & Co., Call Transcript, Earnings, Credit Suisse Group AG, Sales Strategy, Sales Force Management, Sales, Seeking Alpha, Salix Pharmaceuticals Ltd.

Question-and-Answer Session

Operator

Thank you. The question-and-answer session will be conducted electronically. (Operator Instructions). We'll go first to Michael Tong with Wells Fargo Securities.

Michael Tong - Wells Fargo Securities

Adam, is there anything strange going on with the XIFAXAN revenue for the quarter, seems quite a bit high? Secondly, do you have APRISO and COLAZAL sales figures for quarter as well?

Adam Derbyshire

With respect to XIFAXAN, as we pointed out in our press release, we had 15% growth in prescriptions; we had about 20% in price year-over-year. We did also have numerous quarters in 2008 where demand outpaced ex-factory sales. Then I think what else is happening is that wholesalers are anticipating the 550 formulation approval, and also have realized that we've just created a second sales force.

I think there may have been some forward buying occurring in the quarter with respect to XIFAXAN. In terms of COLAZAL and APRISO we had shipments of APRISO of roughly combined actually as an IBD line it was roughly about 1 million.

Michael Tong - Wells Fargo Securities

Okay. Then the other thing had to do with XIFAXAN prescription trend. It seems to be doing okay. However, not that you are promoting it off-label, but are you a little surprised that prescription trends haven't picked up based on the results that you have presented in IBS as well as in HE so far?

Adam Derbyshire

Well, okay I mean 15% year-over-year, and 5% sequentially for a product that we're not promoting and having incentivized our sales force to promote for four years, we consider it to be substantial growth, but maybe Carolyn has comments on that as well.

Carolyn Logan

No, as Adam mentioned, we have not had incentive compensation on this product for four years or more. So while some data has been released to grassroots gastroenterologists or physicians, this is not widely publicized, because as you pointed out Michael we are definitely not promoting this drug off-label. We're doing everything to prevent that. So I agree with Adam, we're quite pleased with the progress this drug is making.

Operator

We'll now hear from Scott Hirsch with Credit Suisse.

Scott Hirsch - Credit Suisse

Thanks. Do you know what the average number of days per RX is now out for XIFAXAN?

Carolyn Logan

In which indication?

Scott Hirsch - Credit Suisse

Just average across the full cycle, the full scope.

Adam Derbyshire

 

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