Biovail Corp. (BVF) Q2 2010 Earnings Call August 5, 2010 8:30 am ET Executives Nelson Isabel - VP of IR & Corporate Communications Bill Wells - CEO Gilbert Godin - COO Peggy Mulligan - CFO Analysts Annabel Samimy - Stifel Nicolaus Mitchell - Piper Jaffray Fred - RBC Capital Markets Greg Fraser - Bank of America Presentation Operator
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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 WellsThanks 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. Read the rest of this transcript for free on seekingalpha.com