This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Biovail Reports Second-Quarter 2010 Financial Results

Biovail Corporation (NYSE/TSX: BVF) today announced financial results for the three-month and six-month periods ended June 30, 2010. To the extent that this news release contains forward-looking statements, investors are cautioned that these are based on the Company’s current views, and actual outcomes are not certain. For more information, see the note on forward-looking information following the conference call details in this news release.

“I am pleased by the strong financial performance in the second quarter of 2010, and the continuation of the positive momentum we’ve seen over the past two years,” said Biovail Chief Executive Officer Bill Wells. “Going forward, I am particularly enthusiastic about our proposed merger with Valeant Pharmaceuticals International, which will create a leading specialty pharmaceuticals company with large cash flows and exciting growth prospects.”

Financial Results

Total revenues for the three months ended June 30, 2010 were $238.8 million, compared with $193.5 million for the second quarter of 2009, an increase of 23%. Total revenues for the six months ended June 30, 2010 were $458.4 million, compared with $366.9 million for the first six months of 2009. Second-quarter 2010 net income, in accordance with United States Generally Accepted Accounting Principles (GAAP), was $34.0 million compared with $24.1 million for the corresponding 2009 period, an increase of 41%. Net income for the first half of 2010 was $30.8 million, compared with $63.1 million in the same period a year earlier. On a per-share basis, Biovail recorded GAAP diluted earnings per share (EPS) of $0.21 for the second quarter of 2010, compared with $0.15 for the second quarter of 2009, an increase of 40%. In the first half of 2010, GAAP EPS were $0.19, compared with EPS of $0.40 for the first half of 2009.

Specific Items Affecting Operations

The following table displays specific items that affected results in the second quarter and first half of 2010 and 2009, respectively, and the impact of each individual item on diluted EPS.

  Three Months Ended June 30   Six Months Ended June 30
2010   2009 2010   2009

 

 

Diluted EPS

 

 

Diluted EPS

  Diluted EPS   Diluted EPS
[$ in 000s, except per share data; Income (Expense)]   Amount   Impact   Amount   Impact   Amount   Impact   Amount   Impact
IPR&D (1) $ (10,242 ) $ (0.06 ) $ (30,414 ) $ (0.19 ) $ (61,245 ) $ (0.38 ) $ (30,414 ) $ (0.19 )
Acquisition-related costs (7,577 ) (0.05 ) (5,596 ) (0.04 ) (7,577 ) (0.05 ) (5,596 ) (0.04 )
Restructuring costs (2,881 ) (0.02 ) (11,367 ) (0.07 ) (3,494 ) (0.02 ) (12,715 ) (0.08 )
SEC/OSC independent consultant and related costs (2) (150 ) - (1,546 ) (0.01 ) (781 ) - (2,973 ) (0.02 )
Impairment losses on debt securities (392 ) - (1,617 ) (0.01 ) (547 ) - (4,324 ) (0.03 )
Gain on auction rate security settlement - - 22,000 0.14 - - 22,000 0.14
Proxy contest costs (2) - - (629 ) - - - (629 ) -
Write-down of deferred financing costs (3) - - (537 ) - - - (537 ) -
Legal settlements - - - - - - (241 ) -
Gain on disposal of investments   -       -     344       -     -       -     338       -  
Total $ (21,242 )   $ (0.13 ) $ (29,362 )   $ (0.19 ) $ (73,644 )   $ (0.46 ) $ (35,091 )   $ (0.22 )
 
(1) Included in research and development expenses.
(2) Included in selling, general and administrative expenses.
(3) Included in interest expense.

In the second quarter of 2010, Biovail’s financial performance was affected by a number of items that, in aggregate, negatively impacted net income by $21.2 million and EPS by $0.13. These include $10.2 million (including transaction costs) of in-process research and development (IPR&D) expenses related to the license of istradefylline from Kyowa Hakko Kirin Co., Ltd. (“Kyowa”); $7.6 million in acquisition-related costs, including banking, legal, accounting and other transaction costs, directly related to the proposed merger with Valeant Pharmaceuticals International (“Valeant”); and $2.9 million in restructuring costs, primarily related to employee termination costs as a result of the sale of Biovail’s Contract Research Division (“CRD”) to Lambda Therapeutic Research Inc. (“Lambda”). Accordingly, EPS Excluding Specific Items was $0.34 in the second quarter of 2010.

1 of 11

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,390.52 +195.10 1.13%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,630.7410 +64.6030 1.41%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs