By Josh Beckerman
Salix Pharmaceuticals Ltd. has hired search firm Russell
Reynolds Associates to help the drug company find independent
directors in an effort to boost the size and skill set of its
board.
Salix plans to increase its board size by adding independent
directors in the first quarter next year. As of April, the board
consisted of five people.
Botox maker Allergan Inc. held talks with Salix in recent months
about a potential takeover, but The Wall Street Journal reported
concerns about Salix's inventory levels were an obstacle.
Earlier this month, Salix announced a revision in its accounting
that indicated sales of its drugs weren't as strong as Wall Street
had expected. The company also lowered its earnings guidance for
the year.
The company said it believed wholesaler inventory levels for its
key products were appropriate given their long shelf lives, but
said it believed a lack of distribution services arrangements with
wholesalers contributed to difficulty in forecasting quarterly
revenue.
Salix's top-selling product is Xifaxan, an antibiotic that
treats traveler's diarrhea and a liver disorder that impairs brain
function
Write to Josh Beckerman at josh.beckerman@wsj.com
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