BVF ex-dividend on 1/8 (2.4%)
Biovail will pay a dividend of $0.50 to holders as of Monday, January 8. That’s 2.4% of the share price of $21. BVF also plans to triple its annual dividend to $1.50 a share in 2007, and next April, to pay down all of its existing long-term debt. Seems like a cash-flow rich company. Except that Biovail forecasts earnings of $1.70 to $1.80 a share in 2007, down from $2.30 to $2.40 this year. The company faces generic competition to Wellbutrin XL, in the U.S., beginning Jan. 1, and anticipates expense reduction and job cuts as a result.