Biovail Corporation

Biovail Corporation

March 10, 2005 07:33 ET

Biovail Provides 2005 Guidance & Strategy Update




MARCH 10, 2005 - 07:33 ET

Biovail Provides 2005 Guidance & Strategy Update

TORONTO--(CCNMatthews - Mar 10, 2005) -

Biovail Corporation (NYSE:BVF)(TSX:BVF) today announced its revenues and
earnings guidance for 2005. The financial guidance presented today
reflects the Company's strength in leveraging its drug-delivery
technologies to develop and commercialize medications that provide
clinically meaningful enhancements to patients.

Biovail is providing overall revenue guidance for 2005 of $925 million
to $1 billion, and diluted earnings per share (EPS) guidance of $1.50 -
$1.60 (exclusive of any charges), which, at the mid-point, represents
growth of approximately 15% relative to 2004. Biovail's 2005 guidance
does not include the impact of executing strategies to optimize the
Company's U.S. Commercial Operations; any potential new-product
launches, licensings or acquisitions; restructuring or other specific
charges; nor does it include expenses related to stock-based
compensation. Executing strategies to optimize the Company's U.S.
Commercial Operations will have a material, positive impact on Biovail's
2005 and 2006 financial performance.

Biovail's revenue guidance is based on a number of variables, including
current prescription and business trends, and assumes wholesaler
inventory levels in 2005 will be within a range of one to two months.
Wellbutrin XL, Biovail's once-daily bupropion formulation which is sold
under license by GlaxoSmithKline (GSK) in the United States, continues
to be a key contributor to Biovail's earnings in 2005.

The table below summarizes Biovail's revenue guidance ranges for 2005:

($ millions) Q1/2005 Q2/2005 Q3/2005 Q4/2005 2005

Wellbutrin XL 30 - 40 50 - 60 110 - 120 120 - 130 320 - 340

Total Revenues 155 - 180 200 - 240 250 - 295 260 - 305 925 - 1,000

Revenues from Wellbutrin XL are expected to be in the range of $320
million to $340 million in 2005, with the majority occurring in the
second-half of the year. This reflects the dynamics of the
tiered-pricing agreement with GSK, and the expectation that Biovail will
dedicate manufacturing capacity to scale-up activities related to
Tramadol ER and other products.

Biovail's guidance for gross margins on product sales in 2005 is 78% to
79%. Gross margins are expected to increase through the second-half of
2005, primarily due the realization of manufacturing efficiencies and
product mix.

Research-and-development expenses are projected to be within a range of
$80 million to $95 million in 2005. Selling, general and administrative
expenses are forecast to be in the range of $300 million to $335 million
in 2005.

Biovail's diluted EPS guidance for 2005 is based on a number of
variables and assumptions, including estimated revenues, expenses,
wholesaler and distribution-partner buying patterns and inventory
levels, gross margins, tax rate, number of shares outstanding and
numerous other items.

Full-year diluted EPS for 2005 is expected to be in the range of $1.50
and $1.60.
Q1/2005 Q2/2005 Q3/2005 Q4/2005 2005

EPS(a) $0.06 - $0.08 $0.20-$0.25 $0.55-$0.60 $0.65-$0.72 1.50-1.60

(a) EPS guidance is exclusive of any charges, and does not include
stock-based compensation expenses

Strategic Planning Update

Biovail is currently engaged in a strategic-planning process addressing
all aspects of the Company's businesses, including U.S. Commercial
Operations, non-core business lines and product-development pipeline.
The goal of the strategic-planning process is to provide the framework
for long-term, sustainable growth, with the ultimate goal of maximizing
shareholder value. Biovail's first priority is to enhance the return on
investment of the Company's U.S. Commercial Operations. This phase of
the strategic plan is nearing completion, and Biovail expects to be in a
position to announce and begin implementing the chosen U.S. strategy in
the next 30 to 60 days. The selected strategy will have a material,
positive impact on Biovail's 2005 and 2006 financial performance.

In addition to the above, Biovail's Board of Directors is currently in
the process of evaluating a number of options to maximize the value of
Biovail's Legacy products. These options include the sale of the Legacy
products to strategic or financial buyers, the transfer of the assets to
a new entity and sale of the shares of that entity pursuant to an
initial public offering (IPO), or a return of capital to Biovail
shareholders as a dividend. Biovail expects to make a further
announcement with regard to Legacy products during the second quarter of

About Biovail Corporation

Biovail Corporation is an international full-service pharmaceutical
company, engaged in the formulation, clinical testing, registration,
manufacture, sale and promotion of pharmaceutical products utilizing
advanced drug-delivery technologies. For more information about Biovail,
visit the company's Web site at

For further information, please contact Ken Howling at 905-286-3000 or
send inquiries to

"Safe Harbor" Statement Under the Private Securities Litigation Reform
Act of 1995

To the extent any statements made in this release contain information
that is not historical, these statements are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. We have based these forward-looking statements on our current
expectations and projections about future events. Our actual results
could differ materially from those discussed in, or implied by, these
forward-looking statements. Forward-looking statements are identified by
words such as "believe," "anticipate," "expect," "intend," "plan,"
"will," "may" and other similar expressions. In addition, any statements
that refer to expectations, projections or other characterizations of
future events or circumstances are forward-looking statements.
Forward-looking statements include, but are not necessarily limited to,
risks and uncertainties, including the difficulty of predicting U.S.
Food and Drug Administration and Canadian Therapeutic Products
Directorate approvals, acceptance and demand for new pharmaceutical
products, the impact of competitive products and pricing, new product
development and launch, reliance on key strategic alliances,
availability of raw materials and finished products, the regulatory
environment, the outcome of legal proceedings, fluctuations in operating
results and other risks detailed from time to time in the Company's
filings with the Securities and Exchange Commission and the Ontario
Securities Commission. Biovail undertakes no obligation to update or
revise any forward-looking statement.


Contact Information

    Biovail Corporation
    Kenneth G. Howling, 905-286-3000