Business Wire - Biovail Reports 2003 Fourth Quarter and Full Year Financial Results
Business Editors/Health/Medical Writers
TORONTO–(BUSINESS WIRE)–March 3, 2004
Biovail Corporation (NYSE:BVF) (TSX:BVF):
— Core Product sales revenue increases by 59%
— Core Product Revenue $172 million for 2003 versus $108 million
for 2002
— Biovail Pharmaceuticals Canada Product Revenue $85 million for
2003 versus $33 million for 2002
— Wellbutrin XL Revenue $65 million for 2003
— Legacy Product Revenue $209 million for 2003 versus $324
million for 2002
— Generic Product Revenue $101 million for 2003 versus $182
million for 2002
— Slides to facilitate the earnings call may be accessed at
www.biovail.com
Biovail Corporation (NYSE:BVF) (TSX:BVF) announced today its financial results for the three and twelve month periods ending December 31, 2003. Total revenues for the three months ended December 31, 2003 were $199.7 million versus $238.7 million for the three months ended December 31, 2002. Total revenues for the twelve months ended December 31, 2003 were $823.7 million representing an increase of 5% versus $788.0 million for the prior year.
Total revenues for fourth quarter 2003 were favourably impacted versus fourth quarter 2002 total revenues by the launches of Cardizem LA, Teveten HCT, Zovirax Cream and Wellbutrin XL in 2003, as well as an increase in products sales by the Company’s Canadian division due to the acquisition of Wellbutrin SR and Zyban. Fourth quarter 2003 total revenue versus fourth quarter 2002 total revenues were offset by lower revenue of the Company’s Zovirax, Legacy and Generic product lines, as well as lower research and development revenue and co-promotion, royalty and licensing revenue.
Full year 2003 total revenues versus 2002 total revenues were favourably impacted by the product launches described above and the Company’s Canadian division, as well as by higher royalty revenue related to an interest in the gross margins of a generic omeprazole product. This increase in 2003 total revenue was partially offset by lower product sales revenue of the Company’s Legacy and Generic product lines.
Eugene Melnyk, Chairman of the Board and Chief Executive Officer commented, “2003 was a year of transition for Biovail as we made significant progress towards a fully-integrated pharmaceutical company and started to invest strategically for long-term growth in our operations, sales and marketing areas. First half 2004 will be a period of investment as we continue to expand and specialize our sales force in the U.S. and capitalize on our products and pipeline by balancing conservative returns on investment with necessary investments for growth. 2005 will be a year of superior financial results whereby the benefits of 2004 strategic investing is expected to deliver on long-term objectives for growth and profitability. These results will be seen in new product launches, increased sales throughout the U.S. and simultaneously developing our rapidly maturing pipeline of high value products.”
In accordance with U.S. GAAP, fourth quarter 2003 net loss of $96.0 million and diluted loss per share of $0.60 compared to fourth quarter 2002 net loss of $102.8 million and diluted loss per share of $0.65. In accordance with U.S. GAAP, the twelve-month period ended December 31, 2003 net loss was $27.3 million and diluted loss per share was $0.17 compared to net income of $87.8 million and earnings per share of $0.55 for the twelve-month period ended December 31, 2002. The Company had diluted shares outstanding of 159.3 million and 159.9 million for fourth quarter and full year 2003 respectively compared to 158.1 million and 160.5 million for the fourth quarter and full year 2002 respectively.
In the fourth quarter of 2003, Biovail reduced its provision for tax contingencies by $12.0 million that were no longer required due to the resolution of tax uncertainties and incremental tax loses in the U.S.
2003 Financial Performance
Biovail uses five categories to describe its product sales revenue thereby providing financial clarity and ease in monitoring Biovail’s performance. These categories are as follows:
Core Products — includes Cardizem LA, Zovirax products and
Teveten products
Wellbutrin XL — identified as a separate line for ease in
tracking
Biovail Pharmaceuticals Canada (BPC) — including Tiazac,
Wellbutrin SR and Zyban
Legacy Products — includes Tiazac (brand and generic), Cardizem
CD (brand) Ativan/Isordil, Vasotec/Vaseretic, Rondec and Cedax
Generics — controlled-release generics distributed by Teva
Pharmaceuticals
Product Sales Performance
Product sales revenue for the fourth quarter 2003 were $168.3 million compared to $183.8 million in the fourth quarter of 2002, reflecting a decrease of 8%. Product sales revenue were $632.9 million for the year 2003 compared to $646.0 million for the year 2002, reflecting a decrease of 2%. Fourth quarter 2003 product sales revenue was decreased by a $20.0 million increase in the provision for returns.
