Biovail Reports Record First Quarter 2003 Financial Results.

Business Editors/Health/Medical Writers

TORONTO--(BUSINESS WIRE)--April 29, 2003

-- Revenues increased 23% over first quarter 2002

-- Operating income increased 29% over first quarter 2002

-- Diluted EPS increased 22% over first quarter 2002

-- Cash flow from operations grew 56% to $108 million

Biovail Corporation (NYSE:BVF)(TSX:BVF) today announced record financial results for the three-month period ended March 31, 2003 and first month performance for Cardizem(R)LA, which is in excess of 20,000 prescriptions. Total revenues for the first quarter of 2003 increased 23% to $191.4 million, compared to $155.2 million reported for the first quarter of 2002.

Net income increased 19% and was $63.0 million for the first quarter 2003 versus first quarter 2002 net income of $53.1 million. First quarter 2003 diluted earnings per share increased 22% to $0.39 per share versus $0.32 per share for the first quarter 2002. Operating income for the quarter increased 29% to $74.0 million.

Total revenues for the first quarter 2003 of $191.4 increased 23% versus the first quarter 2002 primarily due to the continued strong in-market performances of Zovirax and Teveten(R) products, as well as the Company's interest in the gross profit on the sales of a generic version of Prilosec acquired in the 2002 fourth quarter. The favorable first quarter 2003 revenue results were partially offset by lower product sales revenues primarily related to lower Cardizem(R)CD and generic product sales versus the first quarter 2002.

During the first quarter of 2003, product sales of branded Cardizem(R)CD, as well as other diltiazem based products including Tiazac(R) and generic Cardizem(R)CD, were rationalized to lower inventory levels in the distribution channels. This rationalization of inventory levels was strategically timed to occur prior to the launch and retail stocking of Biovail's enhanced diltiazem medication, Cardizem(R)LA and prior to the launch of a generic version of Tiazac(R).

"The successful relaunch of Teveten(R), the launch of Teveten(R) HCT and the performance of Cardizem(R)LA since its launch earlier this month demonstrates the effectiveness of our sales and marketing and product launch capabilities," commented Eugene Melnyk, Chief Executive Officer and Chairman of the Board. "Operationally, our management team has been strengthened, our pipeline programs are on track including the expected launch of Wellbutrin XL in the second half of 2003 and we continue to explore numerous opportunities. These and other activities give us confidence that we will meet or exceed our objective of 30% earnings per share growth for 2003."

The Company's conference call to review the first quarter 2003 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 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 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
             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
                                            --------------------------
                                                2003         2002
                                            ------------- ------------
REVENUE
Product sales                                   $126,914     $129,854
Research and development                           2,600        5,713
Co-promotion, royalty and licensing               61,876       19,686
                                            ------------- ------------
                                                 191,390      155,253
                                            ------------- ------------
EXPENSES
Cost of goods sold                                37,412       35,716
Research and development                          18,006       10,468
Selling, general and administrative               46,157       39,337
Amortization                                      40,521       12,509
Recovery from product supply agreements          (24,755)           -
                                            ------------- ------------
                                                 117,341       98,030
                                            ------------- ------------
Operating income                                  74,049       57,223
Interest income                                    3,067        1,514
Interest expense                                  (9,982)      (1,693)
Other income                                         507            -
                                            ------------- ------------
Income before provision for income taxes          67,641       57,044
Provision for income taxes                         4,650        3,993
                                            ------------- ------------
Net income                                       $62,991      $53,051
                                            ============= ============

Diluted earnings per share                         $0.39        $0.32
                                            ============= ============

Weighted average number of common shares
 outstanding (000s)                              159,493      166,493
                                            ============= ============


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

                                               March 31    December 31
                                                2003         2002
                                            ------------- ------------
ASSETS
Cash and cash equivalents                        $13,225      $56,080
Other current assets                             289,831      265,551
Long-term investments                             80,330       79,324
Property, plant and equipment, net               146,094      136,784
Goodwill, net                                    102,316      102,212
Intangible assets, net                         1,032,995    1,080,503
Other assets, net                                108,575      113,350
                                            ------------- ------------
                                              $1,773,366   $1,833,804
                                            ============= ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities                             $343,398     $345,158
Deferred revenue                                  17,050       18,200
Long-term obligations                            496,299      624,760
Shareholders' equity                             916,619      845,686
                                            ------------- ------------
                                              $1,773,366   $1,833,804
                                            ============= ============


                         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
                                            --------------------------
                                                2003         2002
                                            ------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                       $62,991      $53,051
Add (deduct) items not involving cash
Depreciation and amortization                     44,174       15,104
Amortization of deferred financing costs             684          380
Amortization of discounts on long-term
 obligations                                       2,090          693
Other items not involving cash                    (1,185)         500
                                            ------------- ------------
                                                 108,754       69,728
Net change in non-cash operating items            (4,952)      41,689
                                            ------------- ------------
Cash provided by operating activities            103,802      111,417
CASH FLOWS FROM INVESTING ACTIVITIES              (8,368)    (237,658)
CASH FLOWS FROM FINANCING ACTIVITIES            (138,311)     123,621
Effect of exchange rate changes on cash and
 cash equivalents                                     22            1
                                            ------------- ------------
Decrease in cash and cash equivalents            (42,855)      (2,619)
Cash and cash equivalents, beginning of
 period                                           56,080      434,891
                                            ------------- ------------
Cash and cash equivalents, end of period         $13,225     $432,272
                                            ============= ============