Biovail "outperform," target price reduced

03/12/07 - RBC Capital Markets

NEW YORK, March 12 (newratings.com) - Analyst Douglas Miehm of RBC Capital Markets maintains his "outperform" rating on Biovail Corp (BVF), while reducing his estimates for the company. The target price has been reduced from $24 to $23.

In a research note published this morning, the analyst mentions that the company’s market share in the UER segment has contracted from 65% to 60% on account of the diluted "first mover" advantage in the tramadol market. Biovail’s Ultram ER revenue estimate for 2007 has been reduced from $115 million to $71 million. The EPS estimates for 2007 and 2008 have been reduced from $1.80 to $1.66 and from $1.65 to $1.48, respectively.