* Biovail Q2 EPS $0.21 vs $0.15 a year earlier
* Biovail Q2 adjusted EPS $0.34 vs consensus view of $0.26
* CEO sees new deals "not too long" after Valeant closes
* Paladin Q2 EPS C$0.24 vs expectations of C$0.16
* Biovail shares up 2 pct; Paladin rises 6.5 pct (Adds analyst's comment. In U.S. dollars unless noted)
By Solarina Ho
TORONTO, Aug 5 (Reuters) - Canada's Biovail Corp BVF.TO BVF.N said on Thursday strong sales of its antidepressant helped quarterly earnings rise nearly 30 percent, while Paladin Labs Inc's PLB.TO stable of drugs pushed profit past forecasts.
For Biovail, sales of its Wellbutrin antidepressant, its Xenazine treatment for neurodegenerative disorders, and a portfolio of generic products drove revenue 23 percent higher.
Paladin, known for its Plan B emergency contraceptive, rang up a 26 percent increase in revenue, as sales of its Tridural and Metadol painkillers, its cancer drug Trelstar, and its Testim testosterone replacement treatment showed growth.
Biovail shares rose about 2 percent on the results, while Paladin jumped over 6 percent.
Biovail said it was on track to close its $3.3 billion acquisition of U.S.-based Valeant Pharmaceuticals (VRX.N) before year-end and that it sees more acquisitions once the deal is completed.
"Very strong results. Very supportive of the overall view that (Biovail) in combination with Valeant is going to create this cash-generating machine with a very good growth platform," said Annabel Samimy, an analyst at Stifel Nicolaus & Co.
"It's quite possible that we're underestimating the cash potential of these companies."
Biovail Chief Executive William Wells said in an interview that said one of the key reasons for the Valeant deal was to enable the company to contemplate transactions that would be out of reach otherwise.
"Business development, in particular M&A is going to be a big focus of the new company," he said.
"We certainly are working on enough stuff that I would be hopeful that we would see some deals not too long after closing (the deal)."
Biovail's net income rose to $34 million, or 21 cents a share, from $24.1 million, or 15 cents, a year earlier.
Second-quarter earnings excluding one-time items rose to 34 cents a share. That topped the analyst consensus of 26 cents, according to Thomson Reuters I/B/E/S.
Quarterly revenue rose 23 percent to $238.8 million.
Biovail's Wells said the new company, which will operate under the Valeant name, will start out in a strong position because it would have no drugs coming off patent, while two major drug approvals are coming up this year.
"The combined company will have ... no significant cliffs on products which are expiring. That's pretty unique in the specialty pharma universe or in the big pharma universe. We will be one of the only companies of any size with that characteristic," he said.
Biovail is expecting U.S. approval of Staccato, for treating schizophrenia and bipolar disorder, in October. Valeant is awaiting approval of Retigabine for the treatment of epilepsy.
Montreal-based Paladin's net income fell to C$4.7 million, or 24 Canadian cents a share, from C$27.7 million, or C$1.71, last year. The company had posted a C$26 million extraordinary gain in the year-before quarter.
Second-quarter earnings before one-time items climbed to 24 Canadian cents a share from 11 Canadian cents.
Analysts had expected 16 Canadian cents a share based on Thomson Reuters I/B/E/S data.
Revenue rose to C$32.9 million from C$26.3 million.
Biovail shares closed off intraday highs, up 26 Canadian cents, or 1.2 percent, at C$22.96 in Toronto, and up 27 cents at $22.64 in New York.
Paladin shares climbed C$1.55, or 6.5 percent, to C$25.45 in Toronto. ($1=$1.02 Canadian) (Additional reporting by Euan Rocha; editing by Peter Galloway)