Biovail’s anti-analyst tactics are apparently working: Banc of America analyst David Maris has dropped coverage. Here is the note from BofA announcing the decision:
Banc of America Securities LLC is terminating coverage of Biovail
Corporation (BVF), effective immediately. On Friday, March 24, 2006, a
putative class action lawsuit was filed in the United States District
Court, District of New Jersey, naming Banc of America Securities LLC
(BAS) among several defendants in connection with research coverage of
Biovail Corporation. While BAS whole-heartedly supports David Maris
and the integrity of his research, BAS has elected to terminate
coverage of BVF.
These recommendations should not be relied on going forward.
Maris, the primary analyst responsible for preparation of this research
report, is currently named among 22 defendants in a civil action filed
in the Superior Court of Essex County, New Jersey by Biovail
Corporation and Biovail Pharmaceuticals, Inc. in connection with Mr.
Marisâ€™ research coverage of the company. Mr. Maris is also a defendant
in the pending litigation against BAS, cited above.
Valuation and Target Price Analysis: Our target of $27 applies a
40-50% discount multiple (11x) to the sector average (20x) to our 2006
estimate of $2.46.
[via Wall Street Folly]