EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: Adam C. Derbyshire Mike Freeman
Vice President and Director, Investor Relations and
Chief Financial Officer Corporate Communications
919 862-1000 919 862-1000
SALIX PHARMACEUTICALS COMPLETES
$30 MILLION FINANCING
RALEIGH, NC, MAY 30, 2001 - Salix Pharmaceuticals, Ltd. (Nasdaq:SLXP) today
announced the completion of a private placement of 1.96 million shares of common
stock to selected institutional investors. The institutional investors include
Capital Research and Management Company, Essex Woodlands Health Ventures and
Franklin Street Partners. Net proceeds to the Company are approximately $28
million.
With the completion of this private placement, the Company's total common stock
outstanding is approximately 16 million shares, and its cash and cash
equivalents are approximately $36 million. The Company intends to use the net
proceeds from the placement to pursue its strategic objectives, including the
expansion of its specialty gastroenterology sales force, the expansion of its
rifaximin development program, and the in-licensing/acquisition of additional
products.
The securities issued in the offering have not been registered under the
Securities Act of 1933, as amended, and cannot be offered or sold in the United
States absent registration or an applicable exemption from registration.
Salix Pharmaceuticals, Ltd., headquartered in Raleigh, North Carolina, develops
and markets prescription pharmaceutical products for the treatment of
gastrointestinal diseases. Salix's strategy is to in-license proprietary
therapeutic drugs that have an existing database of positive, late-stage
clinical data; complete the development and regulatory submission of these
products;
and market them through the Company's gastroenterology specialty sales force.
Salix's lead product is COLAZAL(TM), an anti-inflammatory drug approved for the
treatment of mildly to moderately active ulcerative colitis. The Company
launched the product in the U.S. through its specialty sales force in January
2001. Salix's follow-on product candidate is rifaximin, currently in development
for the potential treatment of infections of the lower gastrointestinal tract.
The Company currently intends to submit an NDA for rifaximin for the treatment
of infectious diarrhea to the U.S. FDA in late 2001. Salix trades on the Nasdaq
National Market under the ticker symbol "SLXP."
For more information please contact the Company at 919-862-1000 or visit our web
site at www.salixpharm.com.
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Please Note: This press release contains forward-looking statements regarding
future events. These statements are just predictions and are subject to
risks and uncertainties that could cause the actual events or results to
differ materially. These risks and uncertainties include the risks of
clinical trials and regulatory review, market acceptance of our products, and
the need to acquire new products. The reader is referred to the documents
that the Company files from time to time with the Securities and Exchange
Commission.