Biovail Case Study

In: Business and Management

Submitted By chak3rs
Words 1682
Pages 7
Contents INTRODUCTION & ISSUE 2 ANALYSIS OF ISSUES 3 Qualitative Analysis 3 Quantitative Analysis 4 RECOMMENDATIONS 6 CONCLUSION 7

INTRODUCTION & ISSUE
Biovail Corporation was one of a Canada’s largest publicity traded pharmaceutical companies, operating internationally in all aspects of pharmaceutical products which is development, manufacture, marketing, licensing, and distribution of pharmaceutical products for the treatment of chronic medical conditions. Its major production facility was located in Steinbach, Manitoba, Canada. It merged with Valeant Pharmaceuticals International in 2010.

From this case, the main issue was David Maris wanted to make sure he was giving the best advice to his investment clients so he wanted to issue an appropriate stock recommendation report. He suspects that Biovail Corporation might have manipulated the result of their financial statement. This refers to fraudulent accounting of Biovail Corporation. David Maris, an analyst at Banc of America Securities (BAS) has investigate that Biovail might have significantly overestimated the amount of Wellbutrin® XL on the truck.
Maris was aware that Biovail was the first time missed its quarterly guidance if compared to the past time. The company stated in its press release that the loss of revenue and income was associated with a significant in-transit shipment loss of Wellbutrin® XL, Biovail antidepressant product, due to a traffic accident that contributed significantly to this unfavorable variance.
Biovail will not be recording any revenue associated with this shipment in third quarter because is not yet known whether or not the product involved in the accident will be salvageable. This product must be sent back to our manufacturing facility for careful inspection to determine if the product still meets all applicable manufacturing specifications and is…...

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