Biovail Provides 2004 Guidance TORONTO, Oct. 30 /PRNewswire-FirstCall/ -- Biovail Corporation (NYSE, TSX: BVF) today announced its revenue and earnings guidance for 2004. The financial guidance presented today reflects the Company's overall strategy of capitalizing on its drug delivery technologies to create value-added products that meet patient needs. The Company believes that the revenue guidance contained herein is conservative and achievable. The expenses reflect the Company's strategic desire to invest in its Research and Development and Sales and Marketing infrastructure to build long-term sustainable organic growth. Biovail's annual product sales revenue by major category, research and development revenue, royalty and co-promote revenue and total revenue for 2004 is expected to grow approximately 10% and be within the following annual ranges: ------------------------------------------------------------------------- Product Categories Ranges ($ millions) ------------------------------------------------------------------------- Promoted products 225 285 ------------------------------------------------------------------------- Cardizem LA 90 120 ------------------------------------------------------------------------- Teveten 35 45 ------------------------------------------------------------------------- Zovirax 100 120 ------------------------------------------------------------------------- Wellbutrin XL 160 210 ------------------------------------------------------------------------- Biovail Pharmaceuticals Canada 95 110 ------------------------------------------------------------------------- Legacy Products 230 260 ------------------------------------------------------------------------- Generics 110 135 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total product sales revenues (1) 850 1,000 ------------------------------------------------------------------------- Research & development revenues 15 20 ------------------------------------------------------------------------- Royalty and co-promote revenues 15 50 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total Revenues (1) 880 1,070 ------------------------------------------------------------------------- (1) Does not necessarily add Numerous factors may impact the Company's quarterly results including the rate of growth for various products launched in 2003, associated promotional costs, launch timing of new products, outlicensing of pipeline products, the growth and variable supply price on Wellbutrin XL sold to GlaxoSmithKline (GSK), and the erosion of revenues related to Legacy and Generic products due to competitive or generic activity. Quarterly product revenue will likely increase throughout the year on a quarter over quarter basis primarily due to Wellbutrin XL and other factors and is expected to be within the following ranges: ------------------------------------------------------------------------- 2004 Q1 Q2 Q3 Q4 Full year ($ millions) ------------------------------------------------------------------------- Total Revenue Ranges 170-200 210-250 230-275 290-345 880-1,070 ------------------------------------------------------------------------- Wellbutrin XL 20-35 30-45 40-55 60-105 160-210 ------------------------------------------------------------------------- Gross margins are forecast to be higher in 2004 than in 2003 and are expected to be in the range of 76% to 80% of product sales revenue. Research and development spending is forecast to be in the range of $80 million to $100 million reflecting an expected increase in clinical activity. Selling, general and administrative expenses are expected to be in the range of $260 million to $290 million (excluding amortization expense). Amortization expense for 2004 will likely be in the range of $65 million to $70 million excluding amortization associated with a generic version of Prilosec. The Company's tax rate is expected to remain in the 6% to 8% range, and could be lower earlier in the year. Fully diluted earnings per share(2) for 2004 are expected to be in the range of $2.00 and $2.20. Quarterly earnings during 2004 will be impacted by the growth of Wellbutrin XL and the increasing supply price that the company receives on higher levels of end market sales by GSK. Quarterly fully diluted 2004 earnings per share(2) guidance by quarter is as follows: ------------------------------------------------------------------------- 2004 Q1 Q2 Q3 Q4 Full year ------------------------------------------------------------------------- Earnings per share(2) $0.25-0.35 $0.30-$0.40 $0.50-$0.65 $0.70-$0.80 $2.00-$2.20 ------------------------------------------------------------------------- (2) All earnings per share information assumes the Company will not have or are exclusive of any charges. 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. More information on Biovail Corporation can be found on http://www.biovail.com/. "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. DATASOURCE: Biovail Corporation CONTACT: Kenneth G. Howling, Vice President, Finance, (905) 286-3000 or send inquiries to .

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