February 18, 2015
By Krystle Vermes, BioSpace.com Breaking News Staff
Raleigh-based biopharmaceutical company Salix Pharmaceuticals, Ltd. is allegedly in the middle of a battle between Valeant Pharmaceuticals International, Inc. , Shire Pharmaceuticals, and Endo Pharmaceuticals, which are looking to acquire it. Salix, which creates treatments for a wide range of gastrointestinal disorders, has been a top takeover target this year.
The company has hired investment bank Centerview Partners Holding LP to serve as a third-party advisor as it analyzes potential bidders, according to Bloomberg. Accounting issues that were found in Salix’s financial statements urged company owners to consider the prospect of putting it up for sale.
Salix noticed its financial issues last year. Since then, companies including Actavis plc and Allergan Inc. have been eying potential takeovers. However, suitors backed out after Salix’s Chief Executive Officer and Chief Financial Officer resigned.
Now, Salix has resolved its financial issues, which has once again drawn the attention of bidders including Shire and Endo Pharmaceuticals. At the moment, Valeant Pharmaceuticals appears to be in the lead, having already secured enough financing to make a bid.
Planning for a Stronger Future
Salix decided to bring in Russell Reynolds Associates to conduct a search for experienced individuals to serve as independent members of its Board of Directors. This news came in November 2014, and Salix claimed that it intended to increase the size of its Board by the first quarter of 2015.
“We have been discussing for some time adding to the collective experience of our Board as Salix has grown rapidly into a market leader in gastroenterology,” said Tom D’Alonzo, chairman of the Board of Directors at Salix. “We are focused on bringing on board individuals with the highest credentials, including past service on public company boards of directors and significant specialty pharmaceuticals experience.”
However, the company could not have foreseen the resignation of CEO Carolyn Logan, which was announced in January. Logan announced that she would be leaving her position as Salix’s president and CEO, but staying on as a consultant to the company.
“It has been an honor and a privilege to have worked with so many talented people at Salix for more than a decade,” Logan stated. “I am extremely proud of what this extraordinary group has accomplished for our shareholders, physicians and patients.”
D’Alonzo was appointed Acting Chief Executive Officer following Logan’s official resignation date of Jan. 30, 2015.
BioSpace Temperature Poll
Will Job Cuts Continue? After a week that saw Quintiles, Sanofi and Actavis slashing almost a 1,000 biotech jobs, BioSpace wonders if the ax will continue to fall. Give us your thoughts about the sector’s “streamlining” below.
