Biovail Corporation International reports 1995 fourth quarter and year end financial results.

TORONTO, Canada--(BUSINESS WIRE)--Feb. 22, 1996--Biovail Corporation International (AMEX, TSE:BVF) today reported fourth quarter and year end financial results for the period ended December 31, 1995.

Revenue for the fourth quarter of 1995 increased 14% to $9.5 million, compared with $8.3 million reported for the fourth quarter of 1994. Operating income was $2.8 million in the fourth quarter of 1995, as compared with $2.7 million in the fourth quarter of 1994. Net income for the fourth quarter of 1995 was $2.9 million, or $0.12 per share, compared with net income of $2.3 million, or $0.11 per share in the comparable period of 1994.

Revenues for the year ended December 31, 1995 increased 19% to $20.6 million compared with $17.3 million reported for the same period of 1994. Operating income of $2.6 million in 1995 remained relatively unchanged from 1994. Net income from operations was $2.3 million, or $0.09 per share, excluding a gain on licensing settlement of $3.6 million, or $0.14 per share. In 1994, net income from operations was $1.5 million, or $0.07 per share, excluding a gain on debt settlement of $8.0 million, or $0.36 per share. Weighted average number of common shares outstanding increased by 14% to 25 million from 21.5 million last year, which has been adjusted for a 3-for-1 stock split.

Eugene Melnyk, Chairman of the Board, commented, "We are extremely proud of the significant progress made during 1995. The year was highlighted by a number of exciting developments which enabled Biovail to position itself as a global force in the development of controlled release drug products. First and foremost, the Company received approval from the U.S. FDA to market Tiazac(R), our once-daily formulation of Diltiazem. This approval is extremely significant to Biovail as we will now be able to participate in the $3.2 billion calcium channel blocker market. In conjunction with this approval, we entered into exclusive 16-year license and supply agreements for Tiazac with Forest Laboratories Inc. The favorable terms of these agreements resulted in Biovail receiving a significant advance payment toward manufacturing supplies of the product. Furthermore, Forest's recognition of the inherent value in the Company was also reinforced through a cash tender offer in which Forest purchased a 20% stake in Biovail. Since the completion of this new partnership, Forest has expanded its aggressive sales force by 45% to accommodate the expected selling requirements for Tiazac(R)."

Mr. Melnyk continued, "Another exciting accomplishment for Biovail was our establishment of Biovail Pharma, our marketing and sales organization dedicated to instituting a marketing presence in Canada. Also, in September of 1995 we acquired the operating assets and the controlled release technology of Galephar, P.R., Inc., an innovative drug delivery company, and former co-developer of Tiazac(R). By acquiring the proprietary controlled release technology, this acquisition enabled us to strengthen our development capabilities for Biovail's future product pipeline."

"Other corporate milestones included the receipt of FDA approval for two new lower dosages of Oruvail(R), the first once-daily pH-dependent nonsteroidal anti-inflammatory drug. These two dosages, 100 mg and 150 mg, will allow for an extended use of Oruvail(R) in elderly and renally impaired patients. In 1995, Oruvail generated world wide sales of approximately $200 million," continued Mr. Melnyk.

Mr. Melnyk cited, "We are proud to note that our last year's achievements have been well-recognized by the investment community as Biovail's share price during the year climbed from $8 3/8 to $77 1/4 at the December 1995 close. In an effort to reward our existing shareholders by increasing the liquidity of the stock and by providing an attractive investment opportunity for potential new shareholders, we announced a 3-for-1 stock split at the beginning of 1996."

Mr. Melnyk concluded, "Entering 1996, our marketing partner has begun the formal launch of Tiazac(R), and we look forward to the continued development of our late-stage products, including Diltiazem SR, our generic version of Hoechst Marion Roussel's twice-daily Cardizem SR(R), and Verapamil SR, a generic version of American Home Products Verelan(R). As a support to the Company's product development effort, Biovail has recently completed the construction of a new 24,000 square foot R&D facility in West Toronto, Canada. Finally, as recently announced, we have appointed several new members to our senior management team, each of whom I am confident will enhance the productivity and creativity of the Company and ensure our strategic growth on an ongoing basis."

Biovail Corporation International is an international full-service pharmaceutical company, engaged in the formulation, clinical testing, registration and manufacture of drug products utilizing advanced drug delivery technologies. -0-

                     BIOVAIL CORPORATION INTERNATIONAL
              CONSOLIDATED STATEMENTS OF INCOME AND DEFICIT
          (All amounts except per share data are expressed in
                       thousands of U.S. dollars)

                                       Three Months Ended      Year Ended
                                           December 31,        December 31,
                                          1995      1994      1995     1994
REVENUE
  Contract                             $   574   $ 1,208   $ 4,333  $ 3,909
  Manufacturing                          6,685     4,479     7,915    4,975
  Royalty and licensing                  2,220     2,660     8,321    8,404
                                         9,479     8,347    20,569   17,288

EXPENSES
  Cost of contract revenue                 461       806     2,732    3,036
  Cost of goods sold                     2,238     1,824     2,715    2,102
  Research and product development       1,665       740     4,462    2,542
  Selling, general and administrative    1,911     2,151     7,182    6,359
  Royalty and commission                   364        92       925      724
                                         6,639     5,613    18,016   14,763

OPERATING INCOME                         2,840     2,734     2,553    2,525
INTEREST INCOME (EXPENSE), net             214     (217)       (99)    (589)
GAIN ON LICENSING SETTLEMENT                 -         -     3,617        -
GAIN ON DEBT SETTLEMENT                      -         -         -    7,955

INCOME BEFORE INCOME TAXES               3,054     2,517     6,071    9,891
PROVISION FOR INCOME TAXES                 164       211       201      430

NET INCOME                             $ 2,890    $2,306    $5,870   $9,461

EARNINGS PER SHARE                    $   0.12   $  0.11   $  0.23  $  0.43

WEIGHTED AVERAGE NUMBER OF
  COMMON SHARES OUTSTANDING         24,993,000 21,850,000 24,993,000 21,850,000
-0-

                        BIOVAIL CORPORATION INTERNATIONAL
                          CONSOLIDATED BALANCE SHEETS
        (All dollar amounts are expressed in thousands of U.S. dollars)

                                        December 31,    December 31,
                                           1995           1994
                 ASSETS
CURRENT

  Cash and short-term deposits           $24,323        $ 2,819
  Trade accounts receivable                6,379          5,346
  Inventories                              3,868            480
  Deposits and prepaid expenses              176             57
                                          34,746          8,702

FIXED ASSETS, net                         19,910         14,182
GOODWILL, net                              3,594          2,746
PRODUCT RIGHTS, net                        2,617              -
                                         $60,867        $25,630

                 LIABILITIES
CURRENT
  Accounts payable                       $ 5,628       $  2,864
  Accrued liabilities                      3,043          1,794
  Income taxes payable                       968            736
  Deferred revenue                        22,167          1,239
  Amount due on acquisition                    -            955
  Current portion of long-term debt        2,244            567
                                          34,050          8,155

DEFERRED REVENUE                           4,274              -

LONG-TERM DEBT
  Non-interest bearing and forgivable
   interest government loans               2,019          4,717
  Other                                    5,932          5,065
                                           7,951          9,782
                                          46,275         17,937

                 SHAREHOLDERS' EQUITY
Share capital                             14,489         13,415
Deficit                                    (572)         (6,442)
Cumulative translation adjustment            675            720
                                          14,592          7,693
                                         $60,867        $25,630

CONTACT: Biovail Corp., Toronto

Eugene Melnyk

Chairman of the Board

Bob Podruzny

Chief Financial Officer

416/285-6000

or

Investor Relations: Donna Stein/

Courtney Levi /Cindy Hintelmann

Press: Michael McMullan

Morgen-Walke Associates

212/850-5600