Biovail Corporation
NYSE : BVF
TSX : BVF

Biovail Corporation

March 23, 2006 07:30 ET

Biovail Provides 2006 Guidance

TORONTO--(CCNMatthews - Mar 23, 2006) -

Biovail Corporation (NYSE:BVF) (TSX:BVF) today announced its revenues and earnings guidance for 2006. This guidance constitutes forward-looking statements and is based on our current views, however, the actual outcomes are uncertain.

Biovail is providing overall revenue guidance for 2006 of $990 million to $1.07 billion, and diluted earnings per share (EPS) guidance of $2.30 to $2.40 (exclusive of any charges), which, at the mid-point, represents growth of approximately 25% relative to 2005. Biovail's EPS guidance includes an estimated $0.10 negative impact related to the estimated effect of expensing stock options in accordance with Financial Accounting Standards Board Statement No. 123R (FAS 123R), which Biovail will begin implementing in the first fiscal quarter of 2006. Biovail's 2006 guidance does not include the impact of any business development activities; the introduction of new generic formulations of the Company's key products; any new supply-and-distribution agreements or acquisitions; restructuring or other specific charges.

Biovail's revenue guidance is based on a number of variables, including current prescription and business trends, and information provided by our strategic marketing and distribution partners. Wellbutrin XL®, Biovail's once-daily bupropion formulation which is manufactured and supplied to GlaxoSmithKline (GSK) for the U.S. market, continues to be a key contributor to Biovail's earnings in 2006. Ultram® ER, recently launched by Ortho-McNeil and Biovail's specialty sales force, will also positively impact the Company's financial performance in 2006.

Biovail anticipates total revenues of $990 million to $1.07 billion in 2006. Revenues from Wellbutrin XL® are expected to be in the range of $400 million to $410 million, while revenues from Ultram® ER are expected to be in the range of $75 million to $85 million in 2006.

Biovail's guidance for gross margins on product sales in 2006 is 78% to 79%. Gross margins are expected to increase through the second half of 2006, primarily due the realization of manufacturing efficiencies, product mix and tiered pricing associated with Wellbutrin XL®.

Research-and-development expenses are projected to be within a range of $105 million to $115 million in 2006. Selling, general and administrative expenses are forecast to be in the range of $230 million to $240 million in 2006.

Biovail's diluted EPS guidance for 2006 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 2006 is expected to be in the range of $2.30 and $2.40.



----------------------------------------------------------------------
Q1/2006 Q2/2006 Q3/2006 Q4/2006 2006
----------------------------------------------------------------------
EPS(1) $0.40-$0.45 $0.40-$0.50 $0.60-$0.70 $0.80-$0.90 $2.30-$2.40
----------------------------------------------------------------------
(1) EPS guidance is exclusive of any charges, and includes stock-based
compensation expenses



Biovail anticipates cash flows from operations to be in a range of $400 million to $460 million in 2006.

Caution Regarding Forward-Looking Information and "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, and may be forward-looking information within the meaning of the "safe harbor" provisions of applicable Canadian provincial securities legislation (collectively "forward-looking statements"). These forward-looking statements relate to, among other things, our objectives, goals, targets, strategies, intentions, plans, beliefs, estimates and outlook, including, without limitation, concerning the Company's guidance for 2006 in respect of its revenues, gross margins on product sales, certain expenses, EPS and cash flows from operations, and can generally be identified by the use of words such as "guidance," "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.

Although Biovail believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations are outlined in the body of this news release, and the Company's earnings news release dated March 23, 2006, and also include, among other things: 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, tax rate assumptions, 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, as well as the Company's ability to anticipate and manage the risks associated with the foregoing. Additional information about these factors and about the material factors or assumptions underlying such forward-looking statements may be found in the body of this news release, and the Company's earnings news release dated March 23, 2006, as well as under the heading "Risk Factors" contained in Item 3(D) of Biovail's most recent Annual Report on Form 20-F.

The Company cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on Biovail's forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Biovail undertakes no obligation to update or revise any forward-looking statement.

About Biovail Corporation

Biovail Corporation is a specialty pharmaceutical company, engaged in the formulation, clinical testing, registration, manufacture and commercialization of pharmaceutical products utilizing advanced drug-delivery technologies. For more information about Biovail, visit the Company's Web site at www.biovail.com.

For further information, please contact Ken Howling at 905-286-3100 or send inquiries to ir@biovail.com.

Contact Information

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