Jim Collins' Insight into Biovail

06/20/2003 12:00 am EST


Jim Collins

Chairman and CEO, Insight Capital Research & Management, Inc.

Jim Collins has spent some four decades following the markets, developing a proprietary, momentum-based method of screening all listed issues to determine which ones are most likely to be tomorrow's leaders. The latest buys in his portfolio range from the design store Bombay (BBA NYSE) to the Russian telecom, Vimpel (VIP NYSE), and Telecom Argentina (TEO NYSE) to his latest featured pick, Biovail (BVF NYSE), which specializes in drug delivery technology.

"Biovail is a pharmaceutical company that applies proprietary drug delivery technologies to create controlled-release versions of existing drug projdcts. The firm owns a number of advanced drug delivery technologies that can improve convenience or performance of existing drug formulations, including techniques that reduce the frequency of dosing as well as rapid dissolving that allows patients to take pills without the use of water to aid swallowing. In addition to a core portfolio of products targeting the cardiovascular, central nervous system, and pain management areas, the company has three products in early launch or development stages that present multi-hundred million-dollar revenue opportunities for Biovail.

"Cardizem LA is a calcium channel blocker for the treatment of hypertension and angina (chest pain). Wellbutrin XL is a controlled-release version of the well-known drug used for the treatment of clinical depression. The product is awaiting marketing approval and has the potential to launch in the second half of 2003. Tramadol XL is a controlled-release analgesic used for the management of moderately severe chronic pain. This product is in late-stage development and is expected to achieve marketing approval in the US in 2004.

"Biovail has marketing partnerships with GlaxoSmithKline, Forest Laboratories, and Reliant Pharamaceuticals. The company is also in the process of building its internal sales force to support its new product launches. For the quarter ended March 2003, the company reported earnings of $0.39 per share, a 22% increase over the prior year. Revenues increased 23% to $191 million. In 2002, the stock fell from over $50 a share to a low of $19. Since that time, it has risen to a new 52-week high. The stock receives an 'A' rating for accumulation and distribution and has a relative strength ranking of 87 out of a possible 100."

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