Salix slips 12% on plans to raise $50 million in offering

Salix Pharmaceuticals Ltd.’s (Nasdaq:SLXP) stock slipped by 12% after the firm announced before the opening this morning plans to raise $50 million by offering convertible senior notes.

The Raleigh, N.C.-based drug manufacturer said it will use the money in part to fund potential product acquisition or in-licensing opportunities. Some money also will be used for general corporate purposes and to develop product candidates.

Salix, which develops and markets prescription pharmaceutical drugs for the treatment of gastrointestinal diseases, has taken a hit this year since competitors starting selling a generic version of inflammatory bowel disease treatment Colazal, which was previously Salix’s best-selling product.

At mid-day, Salix is at $7.84, down $1.06 from Friday’s close. Shares have ranged between $5.40 and $14.26 in the past 52 weeks.

For detailed price information and news stories on Salix, click SLXP.

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