Biovail Reports Record 1999 Fourth Quarter and Year-End Financial Results.Business Editors TORONTO--(BUSINESS WIRE)--Feb. 24, 2000 Biovail Biovail TSX: BVF NYSE: BVF is Canada's largest pharmaceutical company, operating internationally in all aspects of pharmaceutical products. Its major production facility is located in Steinbach, Manitoba. 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) today reported record fourth quarter and year end financial results for the period ended December December: see month. 31, 1999. Revenue for the fourth quarter of 1999 increased 81% to $66.5 million compared with $36.7 million reported for the fourth quarter of 1998. Revenue for the year increased by 56% to $176.5 million from $112.8 for the previous year. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter was $30.2 million and $78.7 million for the year, representing increases of 81% and 60% respectively over the comparable periods of 1998. Net income before goodwill amortization for the three months ended December 31, 1999 was $28.0 million, or $0.48 per share, compared with net income before goodwill amortization of $14.9 million, or $0.28 per share in the comparable period of 1998. After deducting goodwill amortization, net income for the 1999 fourth quarter was $25.0 million, or $0.43 per share, compared with net income of $14.8 million, or $0.28 per share in the comparable 1998 period. Goodwill amortization, net of tax, primarily arising from the acquisition of Biovail Technologies Ltd. (formerly Fuisz Technologies Ltd.) was $3.1 million, or $0.05 per share, for the quarter and year ended December 31, 1999. Net income before goodwill amortization for the year ended December 31, 1999 was $65.7 million, or $1.28 per share, compared with net income before goodwill amortization of $45.6 million, or $0.86 per share for the 1998 year. After deducting goodwill amortization, net income for the year ended December 31, 1999 was $62.5 million or $1.22 per share, an increase of 38% over the net income of $45.4 million, or $0.85 per share for the year ended December 31, 1998. Net income excluding the net gain on disposal of long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investments for the 1999 fourth quarter and 1999 year are $23.0 million or $0.39 per share and $60.5 million or $1.18 per share respectively. Revenue and income increases in both the 1999 fourth quarter and year are attributable to a number of events including the launch of a generic version of Verelan Verelan® Verapamil, see there in the second quarter of 1999 and record product sales of Tiazac Tiazac® Diltiazem, see there (R), Biovail's prescription drug prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, used in the treatment of angina Angina Definition Angina is pain, "discomfort," or pressure localized in the chest that is caused by an insufficient supply of blood (ischemia) to the heart muscle. and hypertension hypertension or high blood pressure, elevated blood pressure resulting from an increase in the amount of blood pumped by the heart or from increased resistance to the flow of blood through the small arterial blood vessels (arterioles). , 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. and in Canada. In December, Biovail successfully launched its generic version of Cardizem Car·di·zem A trademark for the drug diltiazem hydrochloride. diltiazem hydrochloride Adizem (UK), Angitil (UK), Apo-Diltiaz (CA), Apo-Diltiazem (CA), Calcicard (UK), Cardizem, Cardizem CD, Cardizem LA, Cartia XT, CD through its US marketing partner TEVA TEVA Tucson Electric Vehicle Association Pharmaceuticals USA Inc. Crystaal, Biovail's Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. sales and marketing division, continued to gain market share through an expanded portfolio of products which, along with Tiazac(R), includes Retavase, Brexidol, Celexa Ce·lex·a A trademark for the drug citalopram hydrobromide. citalopram hydrobromide Celexa Pharmacologic class: Selective serotonin reuptake inhibitor Therapeutic class: and Cardiac STATus. Eugene Melnyk Eugene Melnyk (born May 27, 1959 in Toronto, Ontario) is a Canadian businessman of Ukrainian origin who now resides in Barbados. He is the chairman and chief executive officer of Biovail Corporation. , Chairman of the Board commented, "Biovail has advanced considerably after a busy and rewarding year that involved the addition of many new products to our portfolio, the acquisition of Fuisz Technologies Ltd., a public share offering and the acquisition of a new 120,000 sq. ft. manufacturing facility. During the year, we successfully launched our generic versions of Cardizem CD and Verelan and we received tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. approval for our generic version of Adalat Ad·a·lat A trademark for the drug nifedipine. CC. These products, and those under 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. review including Procardia Pro·car·di·a A trademark for the drug nifedipine. nifedipine Adalat CC, Adalat PA (CA), Adalat XL (CA), Adipine (UK), Afeditab CR, Angiopine (UK), Apo-Nifed (CA), Calchan (UK), Cardilate MR (UK), Cordacten (UK), XL and Dilacor Di·la·cor A trademark for the drug diltiazem hydrochloride. XR, will contribute to our future growth. Our NDA (Non Disclosure Agreement) An agreement signed between two parties that have to disclose confidential information to each other in order to do business. In general, the NDA states why the information is being divulged and stipulates that it cannot be used for any pipeline is moving forward with a once-daily version of Buspirone buspirone /bu·spi·rone/ (bu-spi´ron) an antianxiety agent used as the hydrochloride salt in the treatment of anxiety disorders and the short-term relief of anxiety symptoms. in Phase III clinical trials Noun 1. phase III clinical trial - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the and the expectation that Phase III clinical trials will be initiated on 2 additional products over the next 18 months." Biovail also announced today the commencement of a tender for any and all of its outstanding 107/8% Senior Notes due 2005, together with the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of consents to the amendment of the related Indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. . The initial expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. for the tender offer is March 20, 2000. The per share price per $1,000 Senior Note is $1,109.51. Holders who tender on or prior to the Consent Date (initially March 6, 2000) will receive an additional $20 per $1,000 principal amount. 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 and manufacture of drug products utilizing advanced drug delivery technologies. "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 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.
BIOVAIL CORPORATION
CONSOLIDATED BALANCE SHEETS
(All dollar amounts are expressed in thousands of U.S. dollars)
(Unaudited)
December 31, December 31,
1999 1998
----------- -----------
ASSETS
CURRENT
Cash and cash equivalents $ 178,086 $ 78,279
Short-term investments 65,893 --
Accounts receivable 60,571 42,768
Inventories 12,701 10,542
Assets held for disposal 20,000 --
Executive stock purchase plan loans -- 2,924
Deposits and prepaid expenses 3,172 3,357
----------- -----------
340,423 137,870
LONG-TERM INVESTMENTS 12 10,055
CAPITAL ASSETS, net 45,300 23,677
OTHER ASSETS, net 249,402 28,317
----------- -----------
$ 635,137 $ 199,919
----------- -----------
----------- -----------
LIABILITIES
CURRENT
Accounts payable $ 22,685 $ 12,244
Accrued liabilities 31,107 4,129
Income taxes payable 3,585 1,004
Customer prepayments 4,962 4,516
Current portion of long-term debt 12,016 653
----------- -----------
74,355 22,546
LONG-TERM DEBT 125,488 126,182
----------- -----------
199,843 148,728
----------- -----------
SHAREHOLDERS' EQUITY
Share capital 368,538 19,428
Warrants 8,244 8,244
Retained earnings 57,252 24,748
Cumulative translation adjustment 1,260 (1,229)
----------- -----------
435,294 51,191
----------- -----------
$ 635,137 $ 199,919
----------- -----------
----------- -----------
BIOVAIL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(All dollar amounts except per share data are expressed
in thousands of U.S. dollars)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
--------- --------- --------- --------
REVENUE
Product sales $ 33,255 $ 23,851 $ 99,526 $ 69,154
Research and development 24,668 11,143 52,260 32,070
Royalty and licensing 8,567 1,707 24,706 11,612
--------- --------- --------- ---------
66,490 36,701 176,492 112,836
--------- --------- --------- ---------
EXPENSES
Cost of goods sold 13,245 9,637 35,078 28,593
Research and development 13,648 5,311 33,130 17,490
Selling, general and
administrative 9,438 5,047 29,602 17,450
--------- --------- --------- ---------
36,331 19,995 97,810 63,533
--------- --------- --------- ---------
OPERATING INCOME 30,159 16,706 78,682 49,303
EQUITY LOSS (1,257) -- (1,618) --
INTEREST EXPENSE, net (981) (1,448) (9,152) (1,702)
GAIN ON DISPOSAL OF LONG-TERM
INVESTMENTS, net 1,948 -- 1,948 --
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES AND
GOODWILL AMORTIZATION 29,869 15,258 69,860 47,601
PROVISION FOR INCOME TAXES 1,845 395 4,215 2,024
--------- --------- --------- ---------
INCOME BEFORE GOODWILL
AMORTIZATION 28,024 14,863 65,645 45,577
GOODWILL AMORTIZATION,
net of tax 3,047 40 3,165 158
--------- --------- --------- ---------
NET INCOME $ 24,977 $ 14,823 $ 62,480 $ 45,419
--------- --------- --------- ---------
--------- --------- --------- ---------
EARNINGS PER SHARE BEFORE
GOODWILL AMORTIZATION $ 0.48 $ 0.28 $ 1.28 $ 0.86
GOODWILL AMORTIZATION
PER SHARE 0.05 -- 0.06 0.01
--------- --------- --------- ---------
EARNINGS PER SHARE $ 0.43 $ 0.28 $ 1.22 $ 0.85
--------- --------- --------- ---------
--------- --------- --------- ---------
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING 58,406,000 53,282,000 51,271,000 53,282,000
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
BIOVAIL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(All dollar amounts are expressed in thousands of U.S. dollars)
(Unaudited)
Year Ended
December 31,
1999 1998
-------- --------
NET INFLOW (OUTFLOW) OF CASH
RELATED TO THE FOLLOWING ACTIVITIES
OPERATING
Net income for the year $62,480 $45,419
Depreciation and amortization 10,140 4,957
Gain on disposal of long-term investments, net (1,948) --
Equity loss 1,618 --
-------- --------
72,290 50,376
Changes in non-cash operating items 8,723 3,197
-------- --------
81,013 53,573
-------- --------
INVESTING
Additions to capital assets, net (7,784) (3,744)
Executive stock purchase plan loans 3,100 10
Acquisition of product rights (38,340) (4,000)
Investment in Fuisz Technologies Ltd., net of
cash acquired (43,720) --
Additions to short-term investments, net (54,665) --
Proceeds on disposal of long-term investments 11,991 --
Decrease (increase) in other assets 25 (176)
Acquisition of long-term investments -- 10,043)
Acquisition of royalty interest -- (15,000)
-------- --------
(129,393)(32,953)
-------- --------
FINANCING
Acquisition of share capital (30,593)(72,141)
Issuance of share capital 253,721 3,929
Repurchase of subordinated convertible debentures (74,545) --
Reduction in other long-term debt (667)(21,838)
Increase in other long-term debt -- 19,143
Issuance of U.S. Senior Notes, net of financing costs -- 120,400
-------- --------
147,916 49,493
-------- --------
EFFECT OF EXCHANGE RATE CHANGES ON CASH 271 (109)
-------- --------
INCREASE IN CASH AND CASH EQUIVALENTS 99,807 70,004
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR 78,279 8,275
-------- --------
CASH AND CASH EQUIVALENTS,
END OF YEAR $178,086 $78,279
-------- --------
-------- --------
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