Biovail's stock price increased in anticipation (and in later affirmation) of its acquisition of the right to market Cambridge Laboratories' Tetrabenazine for $230M.
Biovail failed to meet its forecasted revenues and earnings. Its stock therefore declined in value in anticipation of negative results and later on in their materialization.
Several Class Action Lawsuits were announced against Biovail for potentially deceiving the public with faulty financial disclosures and accounting.
In the first 10 months ensuing Biovail's announcement of its New Strategic Focus, its stock price declined by 27% in comparison to the Dow Jones Index's decline of 18%. Assuming a beta of 0.58 according to Yahoo! Finance, Biovail underperformed its required return by 12%.