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Biovail Corp Q2 2010 Earnings Call Transcript

Biovail Corp Q2 2010 Earnings Call Transcript

Biovail Corp. (BVF)

Q2 2010 Earnings Call

August 5, 2010 8:30 am ET


Nelson Isabel - VP of IR & Corporate Communications

Bill Wells - CEO

Gilbert Godin - COO

Peggy Mulligan - CFO


Annabel Samimy - Stifel Nicolaus

Mitchell - Piper Jaffray

Fred - RBC Capital Markets

Greg Fraser - Bank of America



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Previous Statements by BVF
» Biovail Corp. Q1 2010 Earnings Call Transcript
» Biovail Corporation Q2 2008 Earnings Call Transcript
» Biovail Corporation Q3 2007 Earnings Call Transcript

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Welcome to the Second Quarter 2010 Earnings Call for Biovail Corporation. At this time all participants are in a listen-only mode. This conference call is being webcast on the worldwide web at (Operator's Instructions)

As a reminder, a replay of the conference call will be available until 7:00 PM Eastern Time on Thursday, August 12, 2010 by dialing 416-695-5800 for Toronto and International callers and 1-800-408-3053 for United States and Canada, using access code 5600465 followed by the pound sign.

On behalf of the speakers who follow, investors are cautioned that the presentations and responses to questions may contain forward-looking statements within the meaning of Section 27(a) of the Securities Act OF 1933, as amended and Section 21(e) of the Securities and Exchange Act of 1934 as amended, and which comprise forward-looking information under applicable Canadian provincial securities laws. For the purposes of this caution we refer to such statements as forward looking statements. Forward looking statements involve risks and uncertainties and undue reliance should not be placed on such statements.

Certain material and factors or assumptions are applied in making forward looking statements and actual results may differ materially from those expressed or implied in such statements.

Forward looking statements include, but are not limited to our goals, targets, strategies, intentions, plans, beliefs, estimates, expectations, outlook, guidance and other statements, which contain language such as likely, should, guidance, belief, anticipate, expect, intend, plan, will, may, could, would, target, continue and other similar expressions.

For additional information about the material factors or assumptions underlying such statements and above the material factors that may cause actual results to vary from those expressed or implied in such statements, please consult the company's earnings press release dated August 5, 2010, and available on the company web site as its filings with the U.S. Securities and Exchange commission and the and the Canadian Securities Administrators, including the risk factors detailed in its most recent Form 10-K, and its registration statement, on Form S-4 filed with the Securities and Exchange Commission, on July 21st 2010, as well as other risks and uncertainties, set forth from time to time in the reports filed with the Securities and Exchange Commission and the Canadian Securities Administrators.

The company does not undertake to update any forward-looking statements except as required by law.

At this point, I would now like to turn the call over to Nelson Isabel, Vice President, Investor Relations and Corporate Communications for Biovail Corporation. Mr. Isabel will moderate today's call.

Nelson Isabel

Thank you, operator, and good morning, everyone. On the behalf of Biovail, thank you for joining us. On this morning's call, Biovail management will discuss the financial and operating highlights of the second quarter of 2010 as well as the proposed merger with Valeant Pharmaceuticals International.

Joining us in today's conference call are Bill Wells, Chief Executive Officer of Biovail Corporation, Gilbert Godin, Chief Operating Officer and Peggy Mulligan, Chief Financial Officer. All will be available to participate during the question-and-answer session with research analysts immediately following our remarks.

We'll try to get to as many questions as possible while limiting the call to approximately one hour. Other participants are encouraged to follow-up with the company after this morning's call by calling 905-286-3000 and asking for Investor Relations.

Bill, please go ahead.

Bill Wells

Thanks Nelson. Good morning, everyone. Biovail once again delivered solid financial results in the second quarter, with revenues increasing 23% and adjusted cash EPS up 17% year-over-year. We are clearly maintaining the momentum from 2009 and assuming the proposed merger with Valeant closes later this year, we believe we will have succeeded in moving Biovail to high growth, much more quickly than we would have been able to as a standalone company.

The merger with Valeant will create a dynamic, specialty pharmaceutical company diversified by product line, therapeutic area and geography, and focused on growth and cash flow generation. The new Valeant will have multiple growth platforms, including specialty CNS, dermatology, Canada and emerging markets. All supported by strong cash flows by a broad portfolio of legacy products. Needless to say, we are excited about the value creation potential of the combined company.

Two weeks ago we received good news when we were informed that the Federal Trade Commission had granted early termination of the waiting period under Hart-Scott-Rodino Act. This brings us one step closer to completing the transaction.

In addition to Biovail shareholder approval, the merger is subject to approval by Valeant shareholders, confirmation of financing and the satisfaction of customary closing conditions and regulatory approvals.

In the meantime, we continue to work on the integration planning process for the two companies. Twelve work streams have been created across multiple functional areas. In terms of senior management decision at this point only the CEO and CFO positions have been confirmed. Mike Pearson will be the new Valeant CEO and Peggy Mulligan will be the CFO. As you know I will be the new Valeant Chairman.

We continue to expect cost synergies from the transaction to be at least $175 million by the second year of operations. We also continue to expect a foreclosing and have the new Valeant hit the ground running immediately thereafter.

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