Biovail Corporation International reports record 1996 third quarter and nine month financial results.

TORONTO--(BUSINESS WIRE)--Oct. 29, 1996--Biovail Corporation International (AMEX, TSE:BVF) today reported record third quarter and nine month financial results for the period ended September 30, 1996.

Revenues for the third quarter of 1996 increased 531% to $17.8 million, compared with $2.8 million reported for the third quarter of 1995. Operating income increased to $6.4 million in the third quarter of 1996, compared to an operating loss of $1.3 million in the third quarter of 1995. Net income for the third quarter of 1996 was $6.3 million, or $0.25 per share, compared with net income of $1.2 million, or $0.05 per share in the comparable period of 1995.

Revenues for the nine months ended September 30, 1996 increased 387% to $52.5 million compared with $10.8 million reported for the same period of 1995. The Company reported operating income for the nine months ended September 30, 1996 of $17.2 million, compared with an operating loss of $263,000 for the comparable period last year. Net income for the nine months ended September 30, 1996 was $16.8 million, or $0.66 per share, compared with net income of $3.0 million, or $0.12 per share, in the comparable period of 1995. Weighted average number of common shares outstanding for the nine months of 1996 were 25,352,000 shares compared with 24,880,000 shares in the same period last year.

Eugene Melnyk, Chairman of the Board, commented, "We are very pleased to be reporting a a third consecutive quarter of record earnings which exceed analysts' estimates for Biovail Corporation. The substantial increase in operating income for the third quarter is attributable to the market success of Tiazac , our once-daily formulation of diltiazem. New prescription data indicates the successful penetration of Tiazac in the market place. We would like to congratulate Forest Laboratories, our marketing partner, for their sales results in the United States and we look forward to the continued success of our exclusive 16-year license and supply agreement."

"During the quarter we were issued a U.S. patent covering the use of an extended release drug delivery system for Diltiazem HCL. Patent number 5,529,791, which expires June 2013, provides further protection of the technologies acquired from and developed by Galephar, Puerto Rico Inc., Ltd." cited Mr. Melnyk.

"Finally, we continue to make progress with several other products in our pipeline. We anticipate that the Company will enter into a licensing and distribution agreement for Nifedipine OD, a generic version of Procardia XL prior to the end of this year. We remain confident that Tiazac will continue to win widespread acceptance within the anti-hypertensive market place, and also look forward to achieving new milestones with respect to our product pipeline, in the coming quarters." concluded Mr. Melnyk.

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.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the telecommunications regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. -0-

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


                             Three Months Ended     Nine Months Ended
                               September 30,          September 30,
                            1996         1995      1996         1995

REVENUE
  Contract               $    837        $ 936   $ 3,187      $ 3,850
  Manufacturing            15,175           -     43,156        1,279
  Royalty and licensing     1,825        1,889     6,170        5,653
                           17,837        2,825    52,513       10,782
EXPENSES
  Cost of contract revenue    747          619     2,629        2,322
  Cost of manufactured
   goods sold               6,222           -     17,951          496
  Research and product
   development              1,843        1,351     5,869        2,838
  Selling, general and
   administrative           2,608        2,106     8,880        5,389
                           11,420        4,076    35,329       11,045
OPERATING INCOME (LOSS)     6,417       (1,251)   17,184         (263)
INTEREST INCOME (EXPENSE),
 net                           75          (91)      397         (319)
GAIN ON LICENSING
 SETTLEMENT                   -          2,510        -         3,662
INCOME BEFORE INCOME TAXES  6,492        1,168    17,581        3,080
PROVISION FOR INCOME TAXES    209           12       831           36
NET INCOME                $ 6,283       $1,156  $ 16,750      $ 3,044

EARNINGS PER SHARE
Income (loss) before gain
 on licensing settlement  $  0.25       $(0.05) $   0.66      $ (0.02)
  Net income              $  0.25       $ 0.05  $   0.66      $  0.12
  Weighted average number
   of common shares
   outstanding          25,352,000  24,880,000 25,352,000  24,880,000
-0-
                    BIOVAIL CORPORATION INTERNATIONAL
                       CONSOLIDATED BALANCE SHEETS
     (All dollar amounts are expressed in thousands of U.S. dollars)

                                 September 30,        December 31,
                                     1996                1995
                                  (Unaudited)
                ASSETS

CURRENT
 Cash and short-term deposits     $   15,988            $   24,323
 Trade accounts receivable             7,709                 6,379
Inventories                            9,793                 3,868
 Deposits and prepaid expenses           759                   176
                                      34,249                34,746
DUE FROM OFFICERS AND DIRECTORS        2,479                  ---
FIXED ASSETS, net                     23,926                19,910
GOODWILL                               3,448                 3,594
PRODUCT RIGHTS                         2,526                 2,617
                                  $   66,628            $   60,867

                LIABILITIES
CURRENT
 Accounts payable                 $    8,456            $    5,628
 Accrued liabilities                   6,176                 3,043
 Income taxes payable                  1,068                   968
 Deferred revenue                     10,865                22,167
 Current portion of long-term debt     2,322                 2,244
                                      28,887                34,050

Deferred revenue                       ---                   4,274

LONG-TERM DEBT                         6,857                 7,951
                                      35,744                46,275

    SHAREHOLDERS' EQUITY
Share capital                         14,709                14,489
Retained earnings (deficit)           16,178                  (572)
Cumulative translation adjustment         (3)                  675
                                      30,884                14,592
                                  $   66,628            $   60,867
-0-

CONTACT: Biovail Corporation International

Eugene Melnyk

Chairman of the Board

Bob Podruzny

Chief Financial Officer

[phone]

or

Investor Relations: Donna Stein/

Dan Durkin/Cindy Hintelmann

Press: Michael McMullan

Morgen-Walke Associates

[phone]