REFILE-Paradigm Capital lowers Biovail share target

(Refiles to fix spelling of Paradigm in headline)

(In U.S. dollars unless noted)

TORONTO, Nov 9 (Reuters) - Paradigm Capital analyst Claude Camire lowered his stock price target for Biovail Corp (BVF.TO) (BVF.N) by 15 percent on Friday on concerns over the drugmaker's slow schedule for new product launches.

Camire, a senior healthcare analyst, dropped his target on Canada's biggest publicly traded drugmaker to $22.00 a share from $26. He maintained his "buy" rating, however. Camire also lowered his 2007 revenue outlook by $20 million on worries over lackluster results for Biovail's Ultram ER. Sales of the pain treatment dropped 26 percent to $13.8 million in the third quarter from a year earlier.

"I'm concerned about the short term. There is no short-term catalyst," Camire told Reuters. "Over the next 12 months it's all about managing decreasing revenues and getting ready for the next growth phase."

The stock was down 44 Canadian cents, or 2.6 percent, at C$16.79 on the Toronto Stock Exchange by late morning. It was down 53 cents, or 3 percent, at $17.93 on the New York Stock Exchange.

Camire lowered his target one day after the company said it earned $65.9 million, or 41 cents a share, for the three months ended Sept. 30, compared with a loss of $60.1 million, or 37 cents a share, a year earlier.

The 2006 quarter included charges totaling some $194 million. Year-ago results excluding those charges were $133.3 million, or 83 cents a share.

Revenue was $178.3 million, down 34 percent from $270 million.

But investors have been disappointed by the company's lack of new product announcements and acquisition activity in recent quarters.

"For the last year, we had anticipated that Biovail would make a major acquisition, which never occurred," Camire wrote in a note to investors.

"Instead, they gradually added products in clinical development and redeployed the extra cash to repay long-term debt and initiate a quarterly dividend policy. Based on the new product timeline, we have revised our revenues and earnings estimates to reflect delays in product launches."

Camire said Biovail is expected to launch four to six new products based on the improved version of its Wellbutrin XL anti-depressant as well as a number of other drugs. That is when he expects the company's results to rebound.

The company said during its conference call on Thursday that it has plans for a number of acquisitions in various stages. It also has about 10 new products in the pipeline, with another four nearing new drug application status in the next few years.

($1=$0.94 Canadian)