Endo Makes Takeover Bid for Salix Pharmaceuticals (SLXP)

Shares of Salix Pharmaceuticals Ltd (SLXP) are up $8.79, or 5.60%, at $166.43 in midday trading after a Wall Street Journal report suggested Endo International Plc (ENDP) has made a competing offer of between $170 and $175 per share for the pharmaceuticals and medical device maker. Canada’s Valeant Pharmaceuticals Int’l Inc (VRX) agreed to buy Salix in late February for about $10 billion, or $158 per share.

It’s worth noting that CNBC’s David Faber is now saying Endo’s offer for SLXP is $165/shr in cash and stock versus the $170-175/shr figure quoted in the WSJ report.

The news has prompted SLXP to trade on heavy volume with the issue currently trading more than 11 million shares, well ahead of its three month daily average of 2.6 million shares.

Salix Pharmaceuticals is a Raleigh, North Carolina-based drug maker developing prescription drugs and medical devices to treat various gastrointestinal diseases in the United States. Its stock has a median consensus analyst price target of $158 with a high target of $185.00, and a 52-week trading range of $86.00 to $172.98.

The t-12 profit margin at Salix is (36.60)%. SLXP‘s revenue for the same period is $1.13 billion.

Salix Pharmaceuticals has a market cap of $10.78 billion.

Update: Endo Pharma confirms it has submitted a proposal to the Board of Directors of Salix Pharmaceuticals, Ltd to buy the company for $175 per share in cash and stock. Endo said the proposed transaction would not be subject to any financing condition.

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