This excerpt taken from the SLXP 8-K filed Jun 24, 2005.
Pharmaceutical Company Focused on Gastroenterology
RALEIGH, NC, and BLUE BELL, PA, June 23, 2005 - Salix Pharmaceuticals, Ltd. (Nasdaq: SLXP) and InKine Pharmaceutical Company, Inc. (Nasdaq: INKP) announced today that the two companies have entered into a definitive merger agreement under which InKine stockholders will receive Salix common stock valued at $3.55 per share of InKine common stock, or approximately $190 million in equity value. On a GAAP basis, the transaction is expected to be EPS neutral to Salix in 2006 and significantly accretive thereafter. The merger agreement, which was approved by the board of directors of both companies, provides that InKine stockholders will receive newly issued shares of Salix common stock in exchange for each share of InKine common stock with the final exchange ratio to be determined based on Salixs stock price prior to closing.
This merger brings together two complementary companies to create the largest specialty pharmaceutical company focused exclusively on gastroenterology. The combined company will be marketing six gastroenterology products, led by COLAZAL®, XIFAXAN and VISICOL®. A New Drug Application for INKP-102, InKines second-generation purgative product, was filed with the U.S. Food and Drug Administration in April 2005 and is currently under review. The combined company also will be developing a gastroenterology product pipeline comprised of numerous Phase III candidates and projects.
The combination of Salix and InKine provides an unparalleled opportunity for each company to capitalize on their assets in the short-term and strengthen their prospects for continued growth over the long-term, stated Carolyn J. Logan, President and Chief Executive Officer, Salix Pharmaceuticals. The combined company should benefit from the expanded reach and penetration of a sales force totaling approximately 100 specialty sales representatives focused on gastroenterologists. The addition of VISICOL tablets to our product portfolio provides Salix entry into the growing purgative/bowel preparation market along with the potential to enter the prescription constipation market with InKines second-generation purgative product, INKP-102. We view VISICOL and INKP-102 as key additions to our mission to provide important and effective products to gastroenterologists and their patients. We believe the opportunity to combine the assets of our two companies should benefit all the combined companys stakeholders patients, physicians, stockholders and employees.
Commenting on the merger, Leonard S. Jacob, M.D., Ph.D., Chairman and Chief Executive Officer, InKine Pharmaceutical Company, stated, We believe the combination of InKine and Salix will provide critical mass to further grow sales of VISICOL, the only FDA-approved tablet for bowel preparation prior to colonoscopy, and fund the timely launch of our next-generation purgative agent, INKP-102. We are confident that the expanded gastroenterology-focused marketing and sales effort of the combined company will substantially increase the adoption and utilization of InKines products which will benefit our stockholders now and in the future.