UPDATE 1-Biovail to buy Huntington's disease drug rights

* To pay $200 mln to Cambridge Labs for global rights

* Says to pay $30 mln more over 2 years

* Deal to add to rev, margins; boost GAAP net in 2010

May 18 (Reuters) - Biovail Corp (BVF.TO) said it agreed to acquire worldwide rights to tetrabenazine drug to treat chorea associated with Huntington's disease from Cambridge Laboratories (Ireland) Ltd for $200 million.

The Canadian drugmaker will also pay an additional $30 million in two tranches over two years to acquire the worldwide development, manufacturing, and marketing rights to the tetrabenazine product portfolio, it said.

The deal will immediately add to its revenue, margins and cash flows and moderately add to its GAAP earnings per share in 2010, Biovail said in a statement. Tetrabenazine, marketed under Xenazine and Nitoman brands, is used to ease symptoms of Huntington's disease, an incurable neurological disorder that can cause uncontrollable movements.

The acquisition includes a controlled-release formulation of tetrabenazine in development for Tourette Syndrome, as well as a tetrabenazine-derived new chemical entity that may enter mid-stage clinical development in the next 12 months, the company said.

Tetrabenazine tablets in Canada are marketed under the Nitoman brand name by the Biovail Pharmaceuticals Canada sales force. In the United States, the tablets are being sold under the brand name Xenazine and has an orphan drug status through August 2015.

Biovail shares were up 9 Canadian cents at C$12.89 in early morning trade Monday on the Toronto Stock Exchange. (Reporting by Shailesh Kuber in Bangalore; Editing by Gopakumar Warrier)