Biovail Reports 2003 Fourth Quarter and Full Year Financial Results.

Business Editors/Health/Medical Writers

TORONTO--(BUSINESS WIRE)--March 3, 2004

Biovail Corporation (NYSE:BVF) (TSX:BVF):

-- Core Product sales revenue increases by 59%

-- Core Product Revenue $172 million for 2003 versus $108 million

for 2002

-- Biovail Pharmaceuticals Canada Product Revenue $85 million for

2003 versus $33 million for 2002

-- Wellbutrin XL Revenue $65 million for 2003

-- Legacy Product Revenue $209 million for 2003 versus $324

million for 2002

-- Generic Product Revenue $101 million for 2003 versus $182

million for 2002

-- Slides to facilitate the earnings call may be accessed at

www.biovail.com

Biovail Corporation (NYSE:BVF) (TSX:BVF) announced today its financial results for the three and twelve month periods ending December 31, 2003. Total revenues for the three months ended December 31, 2003 were $199.7 million versus $238.7 million for the three months ended December 31, 2002. Total revenues for the twelve months ended December 31, 2003 were $823.7 million representing an increase of 5% versus $788.0 million for the prior year.

Total revenues for fourth quarter 2003 were favourably impacted versus fourth quarter 2002 total revenues by the launches of Cardizem LA, Teveten HCT, Zovirax Cream and Wellbutrin XL in 2003, as well as an increase in products sales by the Company's Canadian division due to the acquisition of Wellbutrin SR and Zyban. Fourth quarter 2003 total revenue versus fourth quarter 2002 total revenues were offset by lower revenue of the Company's Zovirax, Legacy and Generic product lines, as well as lower research and development revenue and co-promotion, royalty and licensing revenue.

Full year 2003 total revenues versus 2002 total revenues were favourably impacted by the product launches described above and the Company's Canadian division, as well as by higher royalty revenue related to an interest in the gross margins of a generic omeprazole product. This increase in 2003 total revenue was partially offset by lower product sales revenue of the Company's Legacy and Generic product lines.

Eugene Melnyk, Chairman of the Board and Chief Executive Officer commented, "2003 was a year of transition for Biovail as we made significant progress towards a fully-integrated pharmaceutical company and started to invest strategically for long-term growth in our operations, sales and marketing areas. First half 2004 will be a period of investment as we continue to expand and specialize our sales force in the U.S. and capitalize on our products and pipeline by balancing conservative returns on investment with necessary investments for growth. 2005 will be a year of superior financial results whereby the benefits of 2004 strategic investing is expected to deliver on long-term objectives for growth and profitability. These results will be seen in new product launches, increased sales throughout the U.S. and simultaneously developing our rapidly maturing pipeline of high value products."

In accordance with U.S. GAAP, fourth quarter 2003 net loss of $96.0 million and diluted loss per share of $0.60 compared to fourth quarter 2002 net loss of $102.8 million and diluted loss per share of $0.65. In accordance with U.S. GAAP, the twelve-month period ended December 31, 2003 net loss was $27.3 million and diluted loss per share was $0.17 compared to net income of $87.8 million and earnings per share of $0.55 for the twelve-month period ended December 31, 2002. The Company had diluted shares outstanding of 159.3 million and 159.9 million for fourth quarter and full year 2003 respectively compared to 158.1 million and 160.5 million for the fourth quarter and full year 2002 respectively.

In the fourth quarter of 2003, Biovail reduced its provision for tax contingencies by $12.0 million that were no longer required due to the resolution of tax uncertainties and incremental tax loses in the U.S.

2003 Financial Performance

Biovail uses five categories to describe its product sales revenue thereby providing financial clarity and ease in monitoring Biovail's performance. These categories are as follows:

   Core Products -- includes Cardizem LA, Zovirax products and
    Teveten products

   Wellbutrin XL -- identified as a separate line for ease in
    tracking

   Biovail Pharmaceuticals Canada (BPC) -- including Tiazac,
    Wellbutrin SR and Zyban

   Legacy Products -- includes Tiazac (brand and generic), Cardizem
    CD (brand) Ativan/Isordil, Vasotec/Vaseretic, Rondec and Cedax

   Generics -- controlled-release generics distributed by Teva
    Pharmaceuticals

Product Sales Performance

Product sales revenue for the fourth quarter 2003 were $168.3 million compared to $183.8 million in the fourth quarter of 2002, reflecting a decrease of 8%. Product sales revenue were $632.9 million for the year 2003 compared to $646.0 million for the year 2002, reflecting a decrease of 2%. Fourth quarter 2003 product sales revenue was decreased by a $20.0 million increase in the provision for returns.

The increase in the provision for returns is due to greater physician acceptance of the benefits of Cardizem LA versus Cardizem CD and an anticipation of greater conversion by Cardizem LA of Cardizem CD.

Core Product sales revenue for the fourth quarter was $33.8 million compared to $34.1 million in the fourth quarter of 2002, a decrease of 1%. The Core Product sales revenue for year 2003 was $172.4 million compared to $108.3 million for year 2002 reflecting an increase of 59%. The Core Product sales revenue reflects the launches of Cardizem LA, Teveten HCT and Zovirax Cream during 2003. Cardizem LA is performing well and is now capturing 10% of new prescriptions written for once-daily diltiazems. Teveten total prescriptions increased 110% in 2003 versus 2002 and Zovirax is capturing 65% share of the topical anti-viral market.

Wellbutrin XL product sales revenue was $48.6 million for fourth quarter 2003 and $64.9 million for the year 2003. Fourth quarter 2003 Wellbutrin XL sales included the recovery of over 90% of Wellbutrin XL product that was involved in a traffic accident on October 1, 2003.

As part of a comprehensive earnings guidance press release on October 3, 2003, Biovail announced that its estimated revenue from Wellbutrin XL for third quarter 2003 would be less than $10.0 million partially as a result of the truck accident and that the loss in revenue due to the accident would be in the range of $10.0 million to $20.0 million. Numerous variables that were not known and were unavailable on October 3, 2003 are now determinable given better information and the reconciliation provided by GSK to Biovail.

Variables that determine Biovail's revenue that were not then known include levels of discounts, free goods or rebates that would have been deducted from GSK's gross sales and the percentage of GSK's net sales Biovail is to receive. In calculating the high end of the estimate range, Biovail also took into consideration the variables that analysts were generally using in their models to estimate the Wellbutrin XL revenues, which included typically higher pricing, higher percentage supply prices and did not reflect the typical gross to net deductions. This analysis with analyst estimates was completed to better explain why revenue in third quarter 2003 would be less than previously expected by analysts.

After a subsequent review of all of the facts, the actual revenue loss from the accident was determined to be $5.0 million. Calculated with analysts' assumptions for these variables, the revenue loss estimate would range from $7.5 million to $8.0 million.

Product sales revenue by BPC was $23.4 million for the fourth quarter in 2003 compared to $9.7 million in the fourth quarter of 2002, an increase of 141%. The product sales were $85.2 million for the year 2003 compared to $32.6 million for year 2002 an increase of 161%. The primary growth drivers are Tiazac as well as revenues from Wellbutrin SR and Zyban, which were acquired at the end of 2002.

Product sales revenue from Legacy Products was $36.4 million for the fourth quarter in 2003 compared to $87.5 million in the fourth quarter of 2002. These product sales were $208.9 million for the year 2003 compared to $323.6 million for year 2002. The lower level of Legacy Products revenue reflects the expected decline in these older, genericized products.

Product sales revenue from controlled-release generics was $25.9 million for the fourth quarter in 2003 compared to $52.5 million in the fourth quarter of 2002. These product sales were $101.5 million for the year 2003 compared to $181.5 million for year 2002. The decline in the generic product sales is in part due to lower volumes of Adalat CC sold following the generic entry of Watson Pharmaceuticals Inc. into the market. Sales of generic products for year 2003 were favourably impacted by an $8.5 million credit received from Teva in the third quarter for 2003, related to certain deductions it had taken in the calculation on net sales.

In summary:
--------------------------------- --------- ------------- ------------
($ Millions)                        2003     Percent of   Growth Rate
                                    Sales      total         2002
--------------------------------- --------- ------------- ------------
Core Products                       $172.4            27%          59%
Wellbutrin XL                        $64.9            10%         N/A
BPC Products                         $85.2            14%         161%
Legacy Products                     $208.9            33%        (35%)
Generics                            $101.5            16%        (44%)
--------------------------------- --------- ------------- ------------
Total Product Sales                 $632.9           100%         (2%)
--------------------------------- --------- ------------- ------------

Research and development (R&D) revenues were $3.4 million and $14.2 million for the three months and twelve months ended December 31, 2003 and compared to $9.3 million and $28.4 million for the comparable 2002 periods. The higher level of R&D revenues in 2002 is related to revenue received from GSK associated with the development of Wellbutrin XL.

Co-promotion, royalty and licensing revenue was $28.0 million for fourth quarter 2003 and compared to $45.6 million for the comparable 2002 period. Co-promotion, royalty and licensing revenue of $176.6 million for the twelve months ended December 31, 2003 compared to $113.6 million for the 2002 comparable period. The increase in these revenues primarily relates to the Company's economic interest in the sales of a generic version of Prilosec. The Company earned $11.3 million and $103.0 million for the fourth quarter and full year 2003 respectively from this economic interest.

Gross margins on total Product Sales were 70% and 78% for the three and twelve month periods ended December 31, 2003 versus 76% and 75% for the prior year comparable periods. Gross margins were favourably impacted by sales mix of higher margin products such as Cardizem LA and Zovirax, offset by lower margins related to Wellbutrin XL revenue, which includes a mix of trade and samples.

Research and development expenses increased by 107% and 66% to $26.1 million and $86.6 million for the three and twelve month periods ended December 31, 2003. The increase in research and development expenses is primarily due to numerous on-going developmental programs, Wellbutrin XL scale up activities and the Cardizem PLACE program.

Selling, general and administrative expenses were $66.3 million for the fourth quarter 2003 versus $43.5 million for fourth quarter 2002, an increase of 52%. Selling, general and administrative expenses were $242.8 million for the twelve month period ended December 31, 2003 versus $166.4 million for the comparable 2002 period, an increase of 46%. The significant increase in selling, general and administrative expenses is due to a number of strategic decisions taken. The significant increase in selling, general and administrative expenses in 2003 are primarily related to our investment in our U.S. pharmaceutical business, both in terms of infrastructure restructuring and costs associated with the launches of three products. Selling, general and administrative expenses for the fourth quarter and full year 2003 also included co-promotion fees payable to Reliant of $3.7 million and $20.9 million respectively.

Amortization expense was $26.2 million and $140.9 million for the three and twelve month periods ending December 31, 2003 respectively versus $29.0 million and $71.5 million for the three and twelve month periods ending December 31, 2002. These increases primarily reflect the incremental amortization related to our economic interest in a generic version of Prilosec.

Cash flow from operations decreased 16% at December 31, 2003 to $282.0 million versus $334.1 million at December 31, 2002.

2003 Significant Items

Fourth quarter and twelve months ended December 31, 2003 U.S. GAAP financials were affected by several significant items. These 2003 significant items and their effect on U.S. GAAP earnings in the fourth quarter and full year 2003 are listed in the chart below:

           Significant Items included in U.S. GAAP earnings
(All dollar amounts are expressed in million of U.S. dollars, except
                            per share data)

                    Three Months Ended December 31
----------------------------------------------------------------------
                                             2003            2002
                                       --------------- ---------------
                                                 Per             Per
                                               diluted         diluted
                                       Amount   share  Amount   share
                                       ------ -------- ------ --------
Reorganization costs                    $4.4    $0.03     $-       $-
Acquired research and development       22.1     0.14  167.7     1.06
Write-down of assets                    45.1     0.28   30.6     0.19
Extinguishment of royalty obligation    61.3     0.38      -        -
Reduction in effective tax rate         (5.9)   (0.04)     -        -
Release of tax reserve                 (12.0)   (0.08)     -        -
Adjustment to product returns
 provision                              20.0     0.13      -        -
Foreign exchange (gain) loss             4.4     0.03   (1.1)   (0.01)
-------------------------------------- ------ -------- ------ --------


                   Twelve Months Ended December 31
----------------------------------------------------------------------
                                            2003            2002
                                       --------------- ---------------
                                                 Per             Per
                                               diluted         diluted
                                       Amount   share  Amount   share
                                       ------ -------- ------ --------
Reorganization costs                    $7.5    $0.05     $-       $-
Acquired research and development      124.7     0.78  167.7     1.05
Write-down of assets                    45.1     0.28   30.6     0.19
Extinguishment of royalty obligation    61.3     0.38      -        -
Release of tax reserve                 (12.0)   (0.08)     -        -
Adjustment to product returns
 provision                              16.0     0.10      -        -
Foreign exchange (gain) loss            14.0     0.09   (0.7)   (0.00)
-------------------------------------- ------ -------- ------ --------

1. Reorganization Costs

Selling, general and administrative expenses in the fourth quarter and twelve months of 2003 included $4.4 million and $7.5 million, respectively, of costs associated with the transition of U.S. commercial operations from Raleigh to Bridgewater. Those costs mainly comprised severance and retention bonuses payable to employees in Raleigh, as well as the cost to terminate the Raleigh lease.

2. Acquired research and development

In the fourth quarter of 2003, we incurred a charge of $22.1 million for acquired research and development, which is comprised of: (i) $12.9 million related to the acquisition of tramadol FT from Ethypharm S.A. ("Ethypharm"); and (ii) $11.1 million related to our increased interest in the BNC-PHARMAPASS products under development. In addition, we finalized the allocation of the purchase price related to our second quarter of 2003 acquisition of Ativan and Isordil, resulting in a reallocation of $1.9 million from acquired research and development to intangible assets

In the twelve months of 2003, we incurred a charge of $124.7 million for acquired research and development, which is comprised of: (i) $44.2 million related to our acquisition of the Athpharma products; (ii) $38.1 million (as adjusted) related to our acquisition of the Ativan sublingual products under development; (iii) $16.0 million related to our acquisition of tramadol FT from Ethypharm; and (iv) $26.4 million related to our interest in the BNC-PHARMAPASS products under development.

Subsequent to year-end, Biovail acquired North American rights to Ethypharm's Flashtab combination tramadol and acetaminophen (Flashtab tamadol/acetaminophen) product, which complements Biovail's September 2003 purchase from Ethypharm of Flashtab tramadol and Biovail's once daily tramadol product.

Concurrent with the negotiation for Flashtab tramadol/acetaminophen, Biovail has modified its shareholders Agreement with Ethypharm with respect to value protection of its 15% equity investment in Ethypharm from an indefinite period to an 18-month term. Biovail and Ethypharm have agreed to terminate the September 2003 Diltiazem CR License Agreement and Supply Agreement and terminated Biovial's obligation to provide convertible debenture financing to Ethypharm. The effect of these negotiations is a $12.9 million acquired research and development charge in fourth quarter, such that total charge for tramadol FT and the combination Flashtab tramadol/acetaminophen was $16.0 million in 2003.

The value of Biovail's 15% investment in Ethypharm is currently enhanced by the equity protection the Company has negotiated. However, Ethypharm will need to achieve certain milestones within the 18-month term of equity protection in order for Biovail to realize its value or a write-down of this investment may become necessary.

In July 2003, a joint venture was established between BLI Pharmaceutical Developments Ltd (BNC), a subsidiary of Biovail Laboratories Incorporated (49% ownership) and PharmaPass II, LLC (51% ownership) for the purpose of developing enhanced or Super-Biovailable formulations of Coreg, Teveten and Flomax. The joint venture (BNC-PHARMAPASS, LLC) agreed to enter into an exclusive manufacturing and distribution agreement with Biovail of these products and BNC held an option to acquire PharmaPass II, LLC's interest in the joint venture. During third quarter and fourth quarter of 2003 research activities of the joint venture produced formulations for two products. During the fourth quarter PHARMAPASS II reduced its investment in BNC-PHARMAPASS, LLC it was entitled to following completion of certain development activities, which resulted in BNC's interest increasing to 84%, which resulted in an incremental $11.1 million charge to acquired research and development. Subsequent to year end Biovail exercised its option to purchase the remaining interest in BNC-PHARMAPASS, LLC for $5.0 million which will result in a charge in first quarter 2004 to acquired research and development.

3. Write-down of assets

Due to the Company's transition plan for its U.S. pharmaceutical business, Biovail has identified certain non-core assets (approved pharmaceutical products) that do not fit with Biovail's therapeutically aligned promotional programs. Biovail focuses its therapeutically aligned sales efforts on cardiovascular products including Cardizem LA, Teveten as well as Zovirax. Additionally, Biovail has to consider and plan for the launch of several pipeline products. With respect to products such as Rondec and Cedax, the Company is considering at several commercial options for these products including the initiation of negotiations for the potential sale of these products, Biovail recorded a $22.0 million non-cash charge related to the write-down of the net book value of Cedax. In addition, we recorded a $21.4 million non-cash charge related to the write-down of the net book value of Rondec, based on the estimated fair value of this product at December 31, 2003.

4. Extinguishment of a royalty obligation

In December 2003, we mutually agreed with Reliant to terminate Reliant's co-promotion of certain of our products effective December 31, 2003. We paid $61.3 million to extinguish our trailing royalty obligation to Reliant. Reliant repaid $61.1 million of its $70.0 million loan payable to us, as well as $3.2 million of accrued interest on the loan. The remaining principal amount of $8.9 million was converted into 446,457 Series D Preferred Units of Reliant, which represents an ownership interest in Reliant of less than 2%.

5. Tax provision

The effective tax rate for the year is 4% reflecting the losses arising in the U.S. from increased sales and marketing expenses. In the fourth quarter of 2003, we reduced the provision for tax contingencies by $12.0 million that were no longer required due to the resolution of tax uncertainties and incremental tax losses in the U.S.

6. Returns Provision

During the fourth quarter 2003, Biovail increased its provision for returns by $20.0 million at December 31, 2003. The increase in the provision for returns is due to greater physician acceptance of the benefits of Cardizem LA versus Cardizem CD and an anticipation of greater conversion by Cardizem LA of Cardizem CD.

7. Foreign Exchange (gain) loss

In preparation of its interim financial statements for each of the first three quarters of 2003, the Company translated the Canadian dollar liability to GSK incurred in 2002 in regard to the purchase of Wellbutrin SR at the exchange rate existing as at the date of acquisition. However, in the course of preparing its financial statements for the fourth quarter and the full year 2003, the Company determined that U.S. GAAP requires that the Canadian dollar liability be translated at current rates.

This translation results in changes to previously recognized foreign exchange (gains) losses of which $5.4 million, $3.9 million and ($3.1) million in the first, second and third quarters, respectively. The net income (loss) per share as adjusted is $0.36 for the first quarter, as compared with previously reported $0.39, ($0.03) for the second quarter, as compared with the previously reported ($0.01) and $0.10 for the third quarter, as compared with the previously reported $0.08.

In addition we have added a new foreign exchange (gain) loss line to our financial statements for greater transparency

Legal and Regulatory

Office of the Attorney General

On July 24, 2003 Biovail received a letter from the Department of Justice for the Boston Attorney General's office requesting information on the marketing activities surrounding the launch of Cardizem(R) LA. Over the past several months, Biovail has provided documents to the Office of the Inspector General and met with representatives of the Department of Justice to discuss this matter. Biovail is continuing to cooperate in respect of this enquiry but at this time, it is difficult to predict when this matter will come to resolution.

U.S. Securities and Exchange Commission (SEC)

On, November 20, 2003 Biovail received a letter from the SEC indicating that the Commission will be conducting an informal inquiry relating to the Company's financial performance and certain accounting matters for the fiscal year 2003. Over the past several months, Biovail has provided documents to the SEC and met with representatives of the SEC to discuss this matter. Biovail is continuing to cooperate in respect of this informal enquiry but at this time, it is difficult to predict when this matter will come to resolution.

Ontario Securities Commission (OSC)

In September 2002, the OSC initiated an extensive, review of the disclosure practices of public companies with a view towards ensuring the integrity of the public markets is always maintained and to ensure that Ontario based public companies listed on the Toronto Stock Exchange were diligent in meeting their disclosure obligations. According to the OSC's website, staff was redeployed in the OSC's Corporate Finance Branch to ensure that all of the largest 100 TSX-listed companies that are headquartered in Ontario were reviewed in fiscal 2003. Biovail was part of the initial disclosure review and continues to work with the OSC to maintain high standards in its commitment to disclosure.

In November of last year, Biovail received notification that, "the Ontario Securities Commission is conducting a routine inquiry into the trading of Biovail Corporation." This previously undisclosed OSC investigation is, according to the OSC, in its early stages. It is important to note the Biovail Corporation itself was not involved in any trading activity during the periods in question.

Biovail takes the ongoing continuous disclosure review and trading activity investigation very seriously and will continue to fully assist the OSC with these important initiatives.

Biovail management will host a conference call and web cast on Wednesday, March 3rd, 2003 at 8:00 a.m. EST for company executives to discuss 2003 fourth quarter earnings. Following the discussion, Biovail executives will address inquiries from research analysts.

A live web cast of this call will be available through the Investor Relations section of the Biovail web site, www.biovail.com. To access this live call, please dial 1-800-814-4853 (U.S. and Canada) and 1-416-640-1907 for international callers. Callers are encouraged to dial in ten minutes before the call begins to avoid delays. A replay of the conference call will be available until 7:00 p.m. EST  on Wednesday March 10, 2004 by dialing 1-877-289-8525 (U.S. and Canada) or 1-416-640-1917 for international callers, using access code, 21037415.

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 further information, please contact Ken Howling at 905-286-3000 or send inquiries to [e-mail].

"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 FDA 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, third parties, 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.

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

                         Three Months Ended      Twelve Months Ended
                             December 31             December 31
                       ----------------------- -----------------------
                           2003        2002        2003        2002
                       ----------- ----------- ----------- -----------
REVENUE
Product sales           $ 168,269   $ 183,836   $ 632,898   $ 645,986
Research and
 development                3,424       9,257      14,239      28,425
Co-promotion, royalty
 and licensing             28,042      45,604     176,585     113,614
                       ----------- ----------- ----------- -----------
                          199,735     238,697     823,722     788,025
                       ----------- ----------- ----------- -----------
EXPENSES
Cost of goods sold         50,633      43,692     139,456     164,706
Research and
 development               26,143      12,603      86,570      52,150
Selling, general and
 administrative (note)     66,335      43,526     242,771     166,397
Amortization               26,245      28,977     140,895      71,499
Acquired research and
 development               22,111     167,745     124,720     167,745
Write-down of assets       45,081      30,575      45,081      31,944
Extinguishment of
 royalty obligation        61,348           -      61,348           -
Settlements                     -           -     (34,055)          -
                       ----------- ----------- ----------- -----------
                          297,896     327,118     806,786     654,441
                       ----------- ----------- ----------- -----------
Operating income (loss)   (98,161)    (88,421)     16,936     133,584
Interest income             1,272         749       7,165       3,608
Interest expense          (10,392)     (9,252)    (40,421)    (32,005)
Foreign exchange gain
 (loss) (note)             (4,413)      1,069     (14,007)        700
Other income (expense)     (1,644)        165        (938)      3,408
                       ----------- ----------- ----------- -----------
Income (loss) before
 provision for
 (recovery of)
 income taxes            (113,338)    (95,690)    (31,265)    109,295
Provision for
 (recovery of)
 income taxes             (17,300)      7,100      (4,000)     21,500
                       ----------- ----------- ----------- -----------
Net income (loss)       $ (96,038)  $(102,790)  $ (27,265)  $  87,795
                       =========== =========== =========== ===========

Diluted earnings (loss)
 per share              $   (0.60)  $   (0.65)  $   (0.17)  $    0.55
                       =========== =========== =========== ===========

Weighted average number
 of common shares
 outstanding (000s)       159,322     158,099     159,919     160,463
                       =========== =========== =========== ===========

Note: Current and prior years' figures reflect the reclassification
      of foreign exchange gains and losses from selling, general and
      administrative expenses.



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

                                                     December 31
                                               -----------------------
                                                   2003        2002
                                               ----------- -----------
ASSETS
Cash and cash equivalents                      $  133,261  $   56,080
Other current assets                              279,191     265,551
Long-term investments                             113,546      79,324
Property, plant and equipment, net                173,804     136,784
Goodwill, net                                     100,814     102,212
Intangible assets, net                          1,049,475   1,080,503
Other assets, net                                  72,683     113,350
                                               ----------- -----------
                                               $1,922,774  $1,833,804
                                               =========== ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities                            $  401,890  $  345,158
Deferred revenue                                   14,500      18,200
Minority interest                                     679           -
Long-term obligations                             624,110     624,760
Shareholders' equity                              881,595     845,686
                                               ----------- -----------
                                               $1,922,774  $1,833,804
                                               =========== ===========



                          BIOVAIL CORPORATION
            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (All dollar amounts are expressed in thousands of U.S. dollars)
                              (Unaudited)

                                                 Twelve Months Ended
                                                     December 31
                                               -----------------------
                                                   2003        2002
                                               ----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)                              $  (27,265) $   87,795
Add (deduct) items not involving cash
Depreciation and amortization                     157,317      82,368
Amortization of deferred financing costs            2,975       2,267
Amortization of discounts on long-term
 obligations                                        6,562       5,329
Acquired research and development                 124,720     167,745
Write-down of assets                               45,081      31,944
Other items not involving cash                      5,893      (1,409)
                                               ----------- -----------
                                                  315,283     376,039
Net change in non-cash operating items            (33,304)    (41,935)
                                               ----------- -----------
Cash provided by operating activities             281,979     334,104
CASH FLOWS FROM INVESTING ACTIVITIES             (278,446)   (792,467)
CASH FLOWS FROM FINANCING ACTIVITIES               72,523      79,533
Effect of exchange rate changes on
 cash and cash equivalents                          1,125          19
                                               ----------- -----------
Increase (decrease) in cash and cash
 equivalents                                       77,181    (378,811)
Cash and cash equivalents, beginning
 of period                                         56,080     434,891
                                               ----------- -----------
Cash and cash equivalents, end of period       $  133,261  $   56,080
                                               =========== ===========