Biovail Provides 2003 Guidance.Business Editors TORONTO--(BUSINESS WIRE)--Feb. 7, 2003 Biovail Corporation (NYSE NYSE See: New York Stock Exchange :BVF BVF Biovail Corporation (stock symbol) BVF Berufsverband der Frauenärzte eV (Muenchen, Germany) BVF Bearing Versus Frequency ) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :BVF) -- Revenues expected to grow in excess of 30% -- Diluted earnings per share expected to grow by 30% -- Biovail's 2003 product launch expectations include Cardizem(R) LA, Wellbutrin(R) XL, Teveten(R) HCT and Zovirax(R) Cream Biovail Corporation (NYSE:BVF) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :BVF) announced today its revenue and earnings guidance for 2003. The financial guidance presented today continues to reflect the Company's considerable opportunities for growth and its ability to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. its drug delivery technological asset base and its rich pipeline. Biovail's annual product sales revenue by major category, research and development revenue, royalty and co-promote revenue and total revenue for 2003 is expected to grow approximately 30% and be within the following annual ranges:
Product Categories Ranges
($ millions)
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U.S. Tiazac(R) (branded and generic) 50 70
Controlled-release generics 170 200
Biovail Pharmaceuticals Canada (including Cardizem(R) CD) 75 100
Biovail Pharmaceuticals USA (ex Cardizem(R)) 210 280
U.S. Cardizem(R) Family (CD, SR and LA) 140 200
Wellbutrin(R) XL 75 150
Total product sales revenues (1) 845 930
Research & development revenues 15 25
Royalty and co-promote revenues 85 125
Total Revenues (1) 950 1,050
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(1) Does not necessarily add
Numerous factors may impact the Company's quarterly results including the timing of various product launches and the associated launch costs, the potential erosion of revenues related to branded products due to competitive or generic activity and in the case of Tiazac(R), the potential that this product may be genericised at some point in 2003. Quarterly product revenue will likely increase throughout the year on a quarter over quarter basis due to these factors and are expected to be within the following ranges:
Revenue Ranges Q1 Q2 Q3 Q4
($ millions)
------------------------------------- ---------- ---------- ----------
Product sales 135 - 160 170 - 195 250 - 280 275 - 310
Research & development 3 - 5 3 - 5 3 - 5 3 - 5
Royalty and co-promote 35 - 45 35 - 45 5 - 30 5 - 30
Total 170 - 200 215 - 245 260 - 300 290 - 330
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Gross margins are forecast to be higher in 2003 than in 2002 and are expected to be in the range of 76% to 78% of product sales revenue. Research and development spending is forecast to be in the range of $75 million to $90 million reflecting an expected increase in clinical activity. Selling, general and administrative expenses are expected to be in the range of 20% to 23% (excluding amortization expense) of total revenue for the year. Selling, general and administrative expenses are expected to be significantly higher in the first two quarters of 2003 due to the launch of several products and are expected to be lower, in percentage terms, during the second half of 2003. Amortization expense for 2003 will vary depending on the values assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to certain assets the Company acquired at the end of 2002. Consistent with prior years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Company's tax rate is expected to remain in the 7% to 8% range. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of are expected to increase by 30% or more in 2003 versus 2002 and be in the range of $2.25 and $2.35. Fully diluted earnings per share in 2004 are also expected to grow in excess of 30% based on continued success of anticipated product launches and a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. competitive market environment. On a quarterly basis, 2003 year over year growth will likely be lower than 30% for the first two quarters versus the prior year's applicable quarterly results due to the timing of expenses associated with launching several products. Fully diluted earnings per share could be significantly higher than 30% during Q3 and Q4 of 2003 depending on numerous factors including the timing and success of product launches, a higher level of first half 2003 spending associated with the launch costs for these products and due to the anticipated launch of Wellbutrin(R) XL in the second half of 2003. The Company will not be incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. launch expenses associated with the commercialization of Wellbutrin(R) XL in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. as our marketing partner will be bearing these expenses. Quarterly fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. 2003 earnings per share guidance by quarter is as follows:
Q1 Q2 Q3 Q4
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Earnings
per share $0.35 - $0.40 $0.43 - $0.50 $0.58 - $0.68 $0.70 - $0.80
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For further information, please contact Ken Howling at 905/286-3000 or send inquiries to ir@biovail.com. Biovail Corporation is an international full-service pharmaceutical company, engaged in the formulation formulation /for·mu·la·tion/ (for?mu-la´shun) the act or product of formulating. American Law Institute Formulation , clinical testing, registration, manufacture, sale and promotion of pharmaceutical products utilizing advanced drug delivery technologies. More information on Biovail Corporation can be found on http://www.biovail.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. To the extent any statements made in this release contain information that is not historical, these statements are essentially forward looking and are subject to risks and uncertainties, including the difficulty of predicting FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. 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, the 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. |
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