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It has faded from the headlines, but controversy still dogs the Oct. 1 traffic accident involving a Biovail (BVF) delivery truck and its shipment of antidepressants. New information obtained by RealMoney.com suggests the Canadian drugmaker overestimated the value of that cargo.
These are not the first questions raised about Biovail's truck accident and probably not the last: The company is scheduled to present at the JP Morgan Healthcare conference at 4:30 p.m. PST Wednesday, and attendees are likely to press for more information about the incident.
To recall, Biovail claims that lost revenue from the accident was in the range of $10 million to $20 million, forcing the company to issue a profit warning for the third quarter. But a RealMoney.com investigation suggests the value of the cargo to Biovail was in the range of only $2 million to $4 million.To this day, Biovail has not made public any documentation related to the truck, its cargo of Wellbutrin XL pills, or the accident that would substantiate its claim of a $10 million to $20 million revenue loss. (The Securities and Exchange Commission is investigating Biovail's accounting and financial reporting practices, covering the fiscal year 2002 and quarterly periods through the third quarter of 2003. Among the documents requested by the SEC are "all invoices, all bills of lading and packing slips