Biovail 3Q profit falls 17 percent on costs

Biovail's 3rd-quarter profit falls 17 percent on costs for buyout, commercialization rights

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NEW YORK (AP) -- Drugmaker Biovail Corp. said Thursday its third-quarter profit fell 17 percent, mainly on costs related to the buyout of Prestwick Pharmaceuticals over a year ago and for commercialization rights to several drugs.

Biovail has been shifting its focus to central nervous system disorder treatments and Prestwick gave it a boost into that sector. That followed a long and messy battle with Biovail founder and major shareholder Eugene Melnyk, who unsuccessfully attempted to replace the board with his own slate of nominees. He disagreed with the company's shift in focus.

During the quarter, the company earned $40.4 million, or 25 cents per share, down from profit of $48.4 million, or 31 cents per share, in the same quarter a year prior. Revenue rose 17 percent to $212.5 million from $181.1 million.

Revenue from the antidepressant Wellbutrin XL surged to $58.6 million from $16.6 million, following the acquisition of commercialization rights. Meanwhile it received $15.1 million in revenue from the movement disorder drug tetrabenazine.

Sales of the antiviral cream Zovirax fell 6 percent to $30.8 million, and sales of extended-release pain drug Ultram ER fell 42 percent to $12.1 million.

Costs rose 16 percent to $154.2 million, with a spike in amortization following the purchase of commercialization rights to Wellbutrin XL and tetrabenazine. Separately, interest expenses surged to $11 million from $246,000.

U.S.-listed shares of Canada-based Biovail added 14 cents to $13.39 in morning trading.