Biovail "outperform," target price reduced

10/25/07 - RBC Capital Markets

NEW YORK, October 25 (newratings.com) - Analysts at RBC Capital Markets maintain their "outperform" rating on Biovail Corp (BVF), while reducing their estimates for the company. The target price has been reduced from $25 to $24.

In a research note published this morning, the analysts mention that TRx data for Legacy Products and Generics was weak in 3Q on account of higher generic competition on Biovail’s Tiazac generic and TEVA's ProcardiaXL. Biovail is likely to report weaker-than-expected 3Q07 results, in view of the TRx data, the analysts say. The sales results for Wellbutrin XL and Ultram ER for the quarter were weaker-than-expected, the RBC Capital Markets adds. The EPS estimates for 2007 and 2008 have been reduced from $1.79 to $1.76 and from $1.60 to $1.47, respectively.