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Salix Pharmaceuticals Ltd. Investigated by Block & Leviton LLP After The Company Announces Resignation Of Its Chief Financial Officer And Reduced Financial Forecasts
Date:11/7/2014

BOSTON, Nov. 7, 2014 /PRNewswire/ -- Shares of Salix Pharmaceuticals Ltd. ("Salix" or the "Company") (NASDAQ:  SLXP) have plunged precipitously in early trading following the Company's announcement that Adam Derbyshire, Chief Financial Officer ("CFO") of the Company, has resigned, being replaced by Timothy Creech as Acting CFO. Early reports indicate that the resignation was related to an accounting scandal involving inventory levels of key gastrointestinal drugs, forcing a reduction in Salix's financial forecasts for the remainder of the year.

Salix is now forecasting product revenue for the remainder of 2014 of just $1.4 billion, $200 million less than its earlier estimates. Pro-forma earnings estimates have fallen from $6.16 per share in earlier guidance to $5.20 per share. These new estimates are being called into question by some investors and commentators, over a concern that the full extent of the accounting issues has yet to be uncovered.  In downgrading the stock, a Stifel analyst stated that "[W]e no longer have faith in SLXP's past demand or inventory calculations. Furthermore, lack of clarity on the pace of inventory work-down injects significant ambiguity in the numbers. We have lost confidence in our projection abilities."

Shares of Salix have plummeted on the news, dropping approximately 38% from the prior day's unaffected closing share price. The purported accounting violations have resulted in a loss of approximately $3.3 billion in market value to investors. 

Block & Leviton LLP is investigating the Company and certain of its officers and directors to determine how widespread any potential accounting violations extend and whether any insiders at the Company personally profited by the alleged accounting improprieties. 

If you purchased Salix securities prior to November 7, 2014, and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte of Block & Leviton LLP at (617) 398-5600 or at Steven@blockesq.com.  Confidentiality to any whistleblowers or other persons with information relevant to the investigation is assured.

Block & Leviton is a Boston-based law firm representing investors for violations of securities laws.  The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 70 years.

This notice may constitute attorney advertising. 

Contact:         
BLOCK & LEVITON LLP
Steven P. Harte
(617) 398-5600
Steven@blockesq.com


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SOURCE Block & Leviton LLP
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