RBC: Strong Quarter, Wellbutrin Deal Ahead for Biovail

Biovail Corp. (BVF), whose shares have risen more than 60% in the past six months after the company in late October 2006 hiked its dividend, said it would make a one-time payment to shareholders, dropped its U.S. sales forecast and made management changes, will likely have investors listening for news related to its Wellbutrin antidepressant when the company’s quarterly financial results come out.

This could come in the form of possible licensing deals and other partnership talks for its Wellbutrin salt, notes RBC Capital Markets analyst Douglas Miehm.

He expects first quarter earnings per share of US46¢, compared to US43¢ a year earlier and the consensus of US39¢.

Biovail said it would announce the reporting date for these results this week.

Mr. Miehm also noted that during a recent marketing trip, Biovail management said the company was weeks away from completing a deal for its Wellbutrin salt, which is not included in Biovail’s current guidance for 2007.

As a result of his expectations for a strong quarter and a near-term deal, Mr. Miehm hiked his price target on Biovail shares toUS$26 from US$24.

BVF 1-yr chart: