Salix Plans to Boost Size of Board

By Josh Beckerman 

Salix Pharmaceuticals Ltd. has hired search firm Russell Reynolds Associates to help the drug company find independent directors in an effort to boost the size and skill set of its board.

Salix plans to increase its board size by adding independent directors in the first quarter next year. As of April, the board consisted of five people.

Botox maker Allergan Inc. held talks with Salix in recent months about a potential takeover, but The Wall Street Journal reported concerns about Salix's inventory levels were an obstacle.

Earlier this month, Salix announced a revision in its accounting that indicated sales of its drugs weren't as strong as Wall Street had expected. The company also lowered its earnings guidance for the year.

The company said it believed wholesaler inventory levels for its key products were appropriate given their long shelf lives, but said it believed a lack of distribution services arrangements with wholesalers contributed to difficulty in forecasting quarterly revenue.

Salix's top-selling product is Xifaxan, an antibiotic that treats traveler's diarrhea and a liver disorder that impairs brain function

Write to Josh Beckerman at [e-mail]

Access Investor Kit for Allergan, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US0184901025

Access Investor Kit for Salix Pharmaceuticals Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US7954351067

Subscribe to WSJ: http://online.wsj.com?mod=djnwires