Biovail reports first quarter 1997 financial results; confirms ANDA filing for generic Cardizem CD in the U.S.; Signs new European Licensing Agreements for Tiazac.

TORONTO, Canada--(BUSINESS WIRE)--April 28, 1997--Biovail Corporation International (NYSE, TSE:BVF) today reported first quarter financial results for the period ended March 31, 1997. The Company also confirmed it has submitted an Abbreviated New Drug Application (ANDA) for Cardizem CD to the U.S. Food and Drug Administration (FDA) and has signed additional licensing agreements with European partners for Tiazac, Biovail's once-daily formulation of the calcium channel blocker, diltiazem.

Revenues for the first quarter of 1997 were $16.4 million, compared with $16.3 million reported for the first quarter of 1996. Net income increased 18% to $5.6 million, or $0.22 per share, in the first quarter of 1997 compared with net income of $4.7 million, or $0.18 per share, in 1996. The prime contributor for the increase in profit was improved margins on Tiazac sales due to the higher proportion of trade vs. sample sales in 1997 compared to 1996. Eugene Melnyk, Chairman, commented, "We are very pleased with our first quarter results which meet or exceed analyst expectations. Continued Tiazac penetration in the U.S. diltiazem market contributed significantly and we anticipate further growth in penetration in coming quarters."

Biovail also confirmed that it has submitted an ANDA for a generic version of Cardizem CD to the FDA. This product represents a $700 million market in the U.S. and is marketed by Hoechst Marion Roussel. Mr. Melnyk commented, "This recent ANDA submission is an important milestone for the Company, as we continue to demonstrate our ability to develop important pharmaceutical products with significant market potential. In addition, we successfully completed studies required for an ANDA filing of a generic version of Verelan, which we expect to submit to the FDA very shortly. With two previously filed ANDAs pending at the FDA, we are very excited about our prospects to bring additional products to market in the coming year." Biovail also has eight other products in advanced stages of development in its product pipeline.

In addition, the Company has signed new marketing partnerships for Tiazac in Germany and The Netherlands. In Germany, Biovail signed licensing agreements with Ratiopharm GmbH, a subsidiary of Merckle GmbH, and Heumann GmbH, a division of Searle, USA. Ratiopharm is a leading German generic pharmaceutical company and Heumann is a premiere marketer of pharmaceutical products, with more than 250 sales representatives covering Germany. In The Netherlands, Biovail has signed an agreement with Zambon B.V., a multinational manufacturer and marketer of pharmaceutical, chemical and hospital home care products.

The Company reported that new prescription data indicates that Tiazac's market share has increased to 9.3% of new, once-daily diltiazem prescriptions written in the U.S. "Tiazac continues to perform well and is meeting all expectations," said Mr. Melnyk. "In Europe, we have begun shipping product to Dupont Merck, our licensing partner in the United Kingdom and Ireland, and will start to record revenues in the second quarter of 1997. The new licensing agreements announced today are important additions to the strong network we are creating to address the European Community, which collectively represents a $400 million diltiazem market. With licensing agreements now signed for the UK, Ireland, France, Spain, Germany and The Netherlands, we will continue to aggressively pursue agreements in other European countries."

Mr. Melnyk concluded, "Our recent approval for Tiazac in five dosage strengths (120mg, 180mg, 240mg, 300mg and 360mg) by the Health Protection Branch in Canada marks the beginning of a very focused marketing and sales campaign aimed directly at physicians by our newly-created, wholly-owned subsidiary, Crystaal Corporation, known previously as Biovail Pharma. Crystaal will generate initial revenues in the second quarter of 1997. In addition, Crystaal will also market Biovail's existing controlled release product portfolio, as well as select in-licensed branded products, throughout Canada. For example, Crystaal has reached an agreement with Forest Laboratories Inc. to in-license Flumadine, an anti-viral drug used for the treatment of influenza A."

Biovail Corporation International is an international full-service pharmaceutical company, engaged in the formulation, clinical testing, registration and manufacture of drug products utilizing advanced drug delivery technologies.

"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. -0-

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


                                         Three Months Ended
                                              March 31,
                                         1997             1996
REVENUE
  Contract                          $     740       $     1,157
  Manufacturing                        13,290            12,771
  Royalty and licensing                 2,362             2,346
                                       16,392            16,274
EXPENSES
  Cost of contract revenue                484               929
  Cost of manufactured goods sold       4,323             5,464
  Research and product development      3,065             2,039
  Selling, general and administrative   2,647             2,943
                                       10,519            11,375
OPERATING INCOME                        5,873             4,899
INTEREST INCOME (EXPENSE), net            (15)              170
INCOME BEFORE INCOME TAXES              5,858             5,069
PROVISION FOR INCOME TAXES                308               382
NET INCOME                          $   5,550        $    4,687

EARNINGS PER SHARE                  $    0.22        $     0.18

WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING          25,430,000        25,343,000


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


                                       March 31,         December 31,
                                         1997               1996
               ASSETS                 (Unaudited)

Current
 Cash and short-term deposits        $   6,710          $    4,256
 Accounts receivable                    12,839              10,364
 Inventories                             9,670               8,134
 Executive stock purchase plan loans     2,541               2,512
 Deposits and prepaid expenses           1,294               1,063
                                        33,054              26,599
Fixed Assets                            24,838              24,819
Other Assets                             7,051               7,188
                                     $  64,943          $   58,606

               LIABILITIES
Current
 Bank indebtness                     $   3,717          $        -
 Accounts payable                        5,824               5,468
 Accrued liabilities                     1,882               1,738
 Income taxes payable                      989                 808
 Customer prepayments                    4,151               6,681
 Current portion of long-term debt       1,950               2,298
                                        18,513              16,993

Long-Term Debt                           4,010               4,670
                                        22,523              21,663

                     SHAREHOLDERS' EQUITY
Share capital                           14,505              14,614
Retained earnings                       28,262              22,712
Cumulative translation account            (347)               (383)
                                        42,420              36,943
                                     $  64,943          $   58,606

CONTACT: Biovail Corporation International

Eugene Melnyk

Chairman of the Board

Bob Podruzny

Chief Financial Officer

[phone]

or

Morgen-Walke Associates

Investor Relations: Donna Stein/

Dan Durkin/Cindy Hintelmann

Press: Stacy Berns

[phone]