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Friday, October 3, 2014

Salix calls off inversion deal amid U.S. government crackdown, (NASDAQ: SLXP)

Salix Pharmaceuticals Ltd , citing a "changed political environment," said on Friday it had scrapped a deal with Italy's Cosmo Pharmaceuticals SpA that would have allowed it to shift its tax base from the United States to Europe.The deal termination came less than two weeks after the U.S. Treasury Department took a series of steps to curb "inversion" deals that let companies avoid U.S. taxes by reincorporating abroad.Raleigh, North Carolina-based Salix, which makes drugs for gastrointestinal disorders, said in July it would merge with Cosmo's Irish subsidiary. Since then, it has faced pressure from top shareholders to cancel the deal and instead sell itself to a larger drugmaker, Reuters reported last month."The changed political environment has created more uncertainty regarding the potential benefits we expected to achieve," Salix Chief Executive Officer Carolyn Logan said.

Salix Pharmaceuticals, Ltd. is a specialty pharmaceutical company dedicated to acquiring, developing and commercializing prescription drugs and medical devices used in the treatment of a variety of gastrointestinal disorders, which are those affecting the digestive tract. Shares of SLXP remained unchanged at $151.09. In the past year, the shares have traded as low as $67.40 and as high as $172.98. On average, 1593430 shares of SLXP exchange hands on a given day and today's volume is recorded at 59864.