Biovail Shares Rise On Credit Suisse Upgrade

NEW YORK (AP) — Shares of drug developer Biovail Corp. rose Monday as a Credit Suisse analyst upgraded shares of the stock, citing a recent string of financial deals, tax advantages, and secure patents.

Credit Suisse analyst Scott Hirsch upgraded shares to "Outperform" from "Neutral", and reaffirmed his $15 price target. He said the company has now put negative study data on the potential Parkinson's disease drug Pimavanserin behind it, along with a patent dispute over the pain drug Ultram ER.

"We are more comfortable with the risk/reward profile for the name," Hirsch said, in a note to investors.

Shares rose 64 cents, or 4.9 percent, to $13.70 in afternoon trading. The stock has traded between $6.65 and $14.25 over the past 52 weeks.

He said the company has "gained credibility in financial deal making" over the year and transitioned from a yield story to a growth story.

In May, for example, the company paid $230 million to Cambridge Laboratories Ltd. and its affiliates for development and sales rights to drugs aimed at treating movement disorders, which include Tourette Syndrome.