8-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                       Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934

       Date of Report (Date of earliest event reported) December 27, 2001


                           SALIX PHARMACEUTICALS, LTD.
      --------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


                             British Virgin Islands
      --------------------------------------------------------------------
                 (State or other jurisdiction of incorporation)


                 000-23265                           94-3267443
      ----------------------------------    ----------------------------------
           (Commission file Number)             (IRS Employer ID Number)


      8540 Colonnade Center Drive, Suite 501, Raleigh, North Carolina 27615
- ------------------------------------------------------------------------------
(Address of principal executive offices)                            (Zip Code)

                                 (919) 862-1000
- ------------------------------------------------------------------------------
               Registrant's telephone number, including area code









Item 5.  Other Events

     On December 27, 2001, Salix issued a press release to announce the filing
with the U. S. Food and Drug Administration of a new drug application for
rifaximin.

     A copy of this press release is attached as an exhibit.



                                    SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                         SALIX PHARMACEUTICALS, LTD.

Date:  December 27, 2001
                                         /s/ Adam C. Derbyshire
                                         -----------------------------------
                                         Adam C. Derbyshire, Vice President
                                         and Chief Financial Officer

EX-99.1

                                                                    Exhibit 99.1

Thursday December 27, 9:01 am Eastern Time

Press Release

SOURCE: Salix Pharmaceuticals, Ltd.

        Salix Pharmaceuticals Submits New Drug Application for Rifaximin for
        the Treatment of Travelers' Diarrhea

RALEIGH, N.C.--(BW HealthWire)--Dec. 27, 2001--Salix Pharmaceuticals, Ltd.
(Nasdaq:SLXP) today announced its submission of a New Drug Application
        ----
(NDA) for rifaximin to the U.S. Food and Drug Administration (FDA).

The Company is seeking approval to market rifaximin for the treatment of
travelers' diarrhea.

Rifaximin is a novel, broad-spectrum antibiotic that belongs to the rifamycin
class of antibiotics. The drug is chemically structured to deliver high
concentrations of antibiotic to the gastrointestinal tract while remaining
minimally absorbed outside the gastrointestinal tract. Salix licensed U.S. and
Canadian rights to rifaximin from Alfa Wassermann S.p.A. Currently, the product
is marketed in Italy by Alfa Wassermann under the trade name Normix(R) and is
licensed by Alfa Wassermann in Mexico to GlaxoSmithKline and Schering-Plough
under the respective trade names RedActiv(R) and Flonorm(R).

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 which 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. COLAZAL was well tolerated in clinical studies. In clinical trials,
patients reported the following adverse events most frequently: headache (8%);
abdominal pain (6%); diarrhea (5%); nausea (5%); vomiting (4%); respiratory
infection (4%); and arthralgia (4%). Withdrawal from therapy due to adverse
events was comparable to placebo. 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.
        ------------------

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 regulatory review
and clinical trials, the need to acquire additional products, and management of
rapid growth. The reader is referred to the documents that the Company files
from time to time with the Securities and Exchange Commission.

- --------------
Contact:
     Salix Pharmaceuticals, Ltd., Raleigh
     Adam C. Derbyshire or Mike Freeman, 919/862-1000