J.P. Morgan downgraded Biovail (BVF) to neutral from overweight.
Analyst Corey Davis says he has little doubt the stock will sell-off Friday morning, and thinks it will remain "dead money" until the Securities & Exchange Commission's accounting inquiry ends. Davis says even if nothing is found, the investigation will probably take months to resolve.
Davis says strength in Wellbutrin XL is apparent in drug trends, and is unlikely to surprise on the upside, but provides some comfort on the earnings floor. He thinks this may be a bottom, but he thought this before, and says it's difficult to see outperformance over the next several months with yet another cloud.