* Q2 net income $0.15/shr vs loss of $0.16/shr
* Excluding items, Q2 EPS was $0.34 vs $0.37 year earlier
* Plans to buy back up to 10 pct of outstanding shares
* Shares rise 1.4 percent (Recasts, adds dateline, details. In U.S. dollars)
By Euan Rocha
TORONTO, Aug 6 (Reuters) - Biovail Corp BVF.TO BVF.N swung to a second-quarter profit on Thursday due to improved sales and a decline in one-time costs, and the drugmaker said it will repurchase up to 10 percent of its outstanding shares.
Canada's biggest publicly traded pharmaceutical company said it earned $24.1 million, or 15 cents a share. That compared with a year-earlier net loss of $25.3 million, or 16 cents a share, when results were hurt by a large restructuring charge and legal settlement costs.
Excluding one-time items, the company's second-quarter earnings fell to 34 cents a share, down from 37 cents a share, a year earlier.
Analysts, on average, had forecast earnings of 34 cents a share, according to Reuters Estimates.
The company said quarterly cash earnings rose to 59 cents a share from 44 cents a share, a year earlier.
Biovail defines cash earnings as cash flow from operating activities, excluding changes in operating assets and liabilities.
Product revenues for the second quarter of 2009 were $187.7 million, compared with $175.7 million in the second quarter of 2008.
Biovail shares rose 1.4 percent to $13.75 in early trade on the New York Stock Exchange.
Biovail said its board has approved a share repurchase program of up to 15.8 million common shares, representing about 10 percent of its public float.
The company indicated that the share buyback program will likely be equally split to target shares listed on both the New York Stock Exchange and the Toronto Stock Exchange.
The share repurchases will be funded using Biovail's existing cash resources, and the timing and amount of share repurchases will vary based on market conditions.
The program does not require Biovail to repurchase a minimum number of shares, and the program may be modified, suspended or terminated at any time without notice, the company said.
The buyback program will commence on Aug. 12 and will terminate on Aug. 11, 2010, or when Biovail completes its purchases.
In June 2008, the company had commenced a similar buyback program to acquire about 8 million shares. The program expired on June 1 with Biovail purchasing and canceling a total of 2.82 million shares. It currently has about 158.2 million shares outstanding.
Biovail also declared a quarterly cash dividend of 9 cents a share, payable on Oct. 5. (Reporting by Euan Rocha; Additional reporting by Anuradha Ramanathan in Bangalore; Editing by Peter Galloway)