Biovail Reports Record First Quarter 2002 Financial Results.Business Editors, Health & Medical Writers TORONTO--(BW HealthWire)--April 25, 2002 - 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. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. increases to $0.32 versus First Call Estimate of $0.30 - - Net income increases 82% over first quarter 2001 - - Diluted EPS increases 60% over first quarter 2001- - Revenue increases 30% over first quarter 2001- Biovail Corporation (NYSE NYSE See: New York Stock Exchange , TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :BVF BVF Biovail Corporation (stock symbol) BVF Berufsverband der Frauenärzte eV (Muenchen, Germany) BVF Bearing Versus Frequency ) today announced its record financial results for the three-month period ended March 31, 2002. Total revenues for the first quarter of 2002 increased 30% to $155.3 million, compared with $119.2 million reported for the first quarter of 2001. Net income increased 82% and was $53.1 million for the first quarter 2002 versus first quarter 2001 net income of $29.2 million. First quarter 2002 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 increased 60% to $0.32 per share versus $0.20 per share for the first quarter 2001. 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 increased to $57.2 million, an increase of 29% over the $44.4 million earned in the first quarter of 2001. Product sales revenue of $129.9 million was driven by sales of Zovirax Zo·vi·rax A trademark for the drug acyclovir. acyclovir sodium Alti-Acyclovir (CA), Avirax (CA), Zovirax Pharmacologic class: Acyclic purine nucleoside analogue Therapeutic class: (R) Ointment ointment /oint·ment/ (oint´ment) a semisolid preparation for external application to the skin or mucous membranes, usually containing a medicinal substance. oint·ment n. , Teveten Tev·e·ten A trademark for the drug eprosartan mesylate. eprosartan mesylate Teveten Pharmacologic class: Angiotensin II receptor antagonist Therapeutic class: (R) and Cedax Ce·dax A trademark for the drug ceftibuten. ceftibuten Cedax Pharmacologic class: Third-generation cephalosporin Therapeutic class: Anti-infective (R) by Biovail Pharmaceuticals USA as well as strong sales of Cardizem(R) in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . The Company also earned co-promotion revenue from the promotion of Wellbutrin(R) SR by Biovail Pharmaceuticals USA as a result of the transaction between the Company and GlaxoSmithKline ("Glaxo"). Under the terms of this agreement, Biovail licensed to Glaxo its once-daily formulation formulation /for·mu·la·tion/ (for?mu-la´shun) the act or product of formulating. American Law Institute Formulation of bupropion bupropion /bu·pro·pi·on/ (bu-pro´pe-on) a monocyclic compound structurally similar to amphetamine, used as the hydrochloride salt as an antidepressant and as an aid in smoking cessation. HCl (the active ingredient An active ingredient, also active pharmaceutical ingredient (or API), is the substance in a drug that is pharmaceutically active. Some medications may contain more than one active ingredient. in Wellbutrin(R)), acquired the marketing rights to the Zovirax(R) anti-viral topical topical /top·i·cal/ (top´i-k'l) pertaining to a particular area, as a topical antiinfective applied to a certain area of the skin and affecting only the area to which it is applied. top·i·cal adj. line and entered into a co-promotion relationship for Wellbutrin(R) SR with Glaxo. The co-promotion revenues associated with Wellbutrin(R) SR and Celexa(R) in Canada are reflected in the Company's Consolidated Statements of Income in the newly named line item "Co-promotion, royalty and licensing." Historical revenues related to the co-promotion of Celexa(R) in Canada have been reclassified from Product sales to this line item. 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. , Chief Executive Officer and Chairman of the Board, commented, "Biovail begins 2002 with tremendous opportunities to exploit three new products in the U.S. marketplace, Teveten(R), Teveten(R) HCT Hct abbr. hematocrit HCT Hematocrit, see there and Zovirax(R) Ointment, a co-promote opportunity with the leading antidepressant antidepressant, any of a wide range of drugs used to treat psychic depression. They are given to elevate mood, counter suicidal thoughts, and increase the effectiveness of psychotherapy. Wellbutrin(R) SR and a deep near-term pipeline that looks very promising. Equally promising, we have established a further mid-term pipeline given the Company's investment in Ethypharm S.A. and the related entitlement An individual's right to receive a value or benefit provided by law. Commonly recognized entitlements are benefits, such as those provided by Social Security or Workers' Compensation. to commercialize, in the 2005 to 2007 timeframe, six new novel pharmaceutical medications being developed by and at the expense of Ethypharm S.A. Biovail continues to look at additional development, marketing, acquisition and partnering arrangements that should further advance the Company's prospects for continued revenue and earnings growth." Effective January 1, 2002, the Company adopted FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting No. 142 which eliminated the amortization of goodwill. Excluding goodwill amortization of $1.6 million and diluted earnings per share of $0.01 from the first quarter 2001 results, net income and diluted earnings per share increased by 72% and 52%, respectively for the first quarter 2002. The Company's conference call to review the first quarter 2002 results will be broadcast live at 8:30 a.m. E.S.T. on the world wide web at www.biovail.com and a replay of the conference call will be available on this website shortly after the call. Biovail Corporation is a leading fully-integrated specialty pharmaceutical company engaged in the formulation, clinical testing, registration, manufacture, sale and promotion of pharmaceutical products utilizing advanced drug delivery technologies for chronic drug therapies. "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.
BIOVAIL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(All dollar amounts are expressed in thousands of U.S. dollars,
except per share data)
(Unaudited)
Three Months Ended
March 31
----------------------
2002 2001
---------- ----------
REVENUE
Product sales $ 129,854 $ 108,861
Research and development 5,713 1,566
Co-promotion, royalty and licensing 19,686 8,800
---------- ----------
155,253 119,227
---------- ----------
EXPENSES
Cost of goods sold 35,716 26,341
Research and development 10,468 11,170
Selling, general and administrative 39,337 26,726
Amortization 12,509 10,602
---------- ----------
98,030 74,839
---------- ----------
Operating income 57,223 44,388
Interest income 1,514 578
Interest expense (1,693) (13,050)
---------- ----------
Income before income taxes 57,044 31,916
Provision for income taxes 3,993 2,750
---------- ----------
Net income $ 53,051 $ 29,166
========== ==========
Diluted earnings per share $ 0.32 $ 0.20
========== ==========
Weighted average number of
common shares outstanding (000s) 166,493 148,084
========== ==========
Presentation for the three months ended March 31, 2001 reflects the
reclassification of co-promotion revenue from Product sales to
Co-promotion, royalty and licensing to conform to the presentation
adopted in 2002.
BIOVAIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(All dollar amounts are expressed in thousands of U.S. dollars)
(Unaudited)
March 31 December 31
2002 2001
------------ ------------
ASSETS
Cash and cash equivalents $ 432,272 $ 434,891
Other current assets 117,452 141,705
Property, plant and equipment, net 91,324 85,581
Goodwill, net 102,197 96,477
Intangible assets, net 764,859 556,360
Other long-term assets 31,500 16,469
------------ ------------
$ 1,539,604 $ 1,331,483
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 166,978 $ 148,740
Deferred revenue 21,875 23,100
Long-term obligations 427,749 33,569
Shareholders' equity 923,002 1,126,074
------------ ------------
$ 1,539,604 $ 1,331,483
============ ============
BIOVAIL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All dollar amounts are expressed in thousands of U.S. dollars)
(Unaudited)
Three Months Ended
March 31
----------------------
2002 2001
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 53,051 $ 29,166
Add items not involving cash
Depreciation and amortization 15,104 13,059
Amortization of deferred financing costs 380 344
Amortization of discount
on long-term obligations 693 3,954
Other items not involving cash 500 1,950
Net change in non-cash operating items 41,689 16,857
---------- ----------
Cash provided by operating activities 111,417 65,330
CASH FLOWS FROM INVESTING ACTIVITIES (237,658) (18,281)
CASH FLOWS FROM FINANCING ACTIVITIES 123,621 (122,500)
Effect of exchange rate changes
on cash and cash equivalents 1 (127)
---------- ----------
Decrease in cash and cash equivalents (2,619) (75,578)
Cash and cash equivalents,
beginning of period 434,891 125,144
---------- ----------
Cash and cash equivalents, end of period $ 432,272 $ 49,566
========== ==========
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