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) July 10, 2002

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

                                    Delaware
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                 (State or other jurisdiction of incorporation)

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

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

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



Item 5. Other Events and Regulation FD Disclosure

        Salix Pharmaceuticals, Ltd. issued a press release today announcing that
the Company has been incorporated into the Russell 2000(R)Index, effective July
1, 2002. A copy of this press release is attached as an exhibit.

Item 7. Financial Statements and Exhibits

(c)  Exhibits

       99.1  Press Release dated July 10, 2002



                                   SIGNATURES

     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 hereunto duly authorized.

                                  SALIX PHARMACEUTICALS, LTD.


Date: July 10, 2002               By: /s/  Adam C. Derbyshire
                                      ------------------------------------------
                                      Adam C. Derbyshire
                                      Vice President and Chief Financial Officer

EX-99.1

                                                                    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 ADDED TO
                              RUSSELL 2000(R) INDEX

RALEIGH, NC, July 10, 2002 - Salix Pharmaceuticals, Ltd. (Nasdaq:SLXP) today
announced that the Company has been incorporated into the Russell 2000(R) Index,
effective July 1, 2002. The Russell 2000(R) Index is the most widely followed
benchmark of small capitalization stock market performance.

Commenting on this development, Bob Ruscher, President and Chief Executive
Officer, Salix, stated, "We are pleased that the Company has qualified for
inclusion in the prestigious Russell 2000(R) Index. The Company's position today
reflects the tremendous progress we have achieved over the past two years.
Highlights of this time period include the approval and launch of our first
product COLAZAL(R), the establishment of a 60-member specialty sales force and
the submission of a New Drug Application for our second product, rifaximin."

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 late-stage or
marketed proprietary therapeutic drugs; complete the required development and
regulatory submission of these products; and market them through the Company's
60-member gastroenterology specialty sales force. Salix's first marketed product
is COLAZAL(R), (balsalazide disodium) Capsules 750 mg, 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's next product candidate is
rifaximin, currently in development for the potential treatment of infections of
the lower gastrointestinal tract. The Company submitted an NDA for rifaximin for
the treatment of travelers' diarrhea to the FDA on December 26, 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.

                                       ###

     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 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.