Biovail Reports Second-Quarter 2010 Financial Results

Biovail Corporation (NYSE/TSX: BVF) today announced financial results for the three-month and six-month periods ended June 30, 2010. To the extent that this news release contains forward-looking statements, investors are cautioned that these are based on the Company's current views, and actual outcomes are not certain. For more information, see the note on forward-looking information following the conference call details in this news release.

"I am pleased by the strong financial performance in the second quarter of 2010, and the continuation of the positive momentum we've seen over the past two years," said Biovail Chief Executive Officer Bill Wells. "Going forward, I am particularly enthusiastic about our proposed merger with Valeant Pharmaceuticals International, which will create a leading specialty pharmaceuticals company with large cash flows and exciting growth prospects."

Financial Results

Total revenues for the three months ended June 30, 2010 were $238.8 million, compared with $193.5 million for the second quarter of 2009, an increase of 23%. Total revenues for the six months ended June 30, 2010 were $458.4 million, compared with $366.9 million for the first six months of 2009. Second-quarter 2010 net income, in accordance with United States Generally Accepted Accounting Principles (GAAP), was $34.0 million compared with $24.1 million for the corresponding 2009 period, an increase of 41%. Net income for the first half of 2010 was $30.8 million, compared with $63.1 million in the same period a year earlier. On a per-share basis, Biovail recorded GAAP diluted earnings per share (EPS) of $0.21 for the second quarter of 2010, compared with $0.15 for the second quarter of 2009, an increase of 40%. In the first half of 2010, GAAP EPS were $0.19, compared with EPS of $0.40 for the first half of 2009.

Biovail invests in psychosis drug

Meadowvale-based pharmaceutical giant Biovail Corporation is investing in the development of a Parkinson's and Alzheimer’s drug. 

Biovail has given California drug maker ACADIA Pharmaceuticals $30 million to continue developing a new drug for psychosis related to Parkinson's and Alzheimer's diseases. 

Biovail has acquired the U.S. and Canadian rights to develop, manufacture and commercialize the drug, which contains pimavanserin tartrate, a new chemical entity designed to block a receptor on cells in the brain that appear in the final stages of clinical trials for patients with psychosis related to Parkinson’s.

According to the National Parkinson Foundation, about 40 per cent of Parkinson's patients may develop psychotic symptoms, which include hallucinations and delusions. 

Similarly, the Alzheimer's Association reports between 25-50 per cent of Alzheimer's patients develop disturbing hallucinations and delusions.

Biovail CEO Bill Wells says the drug has the potential to make a significant difference in the lives of the millions of men and women living with the diseases.

Biovail has agreed to invest as much as another $160 million in potential development milestones if clinical trials and regulatory submissions are completed successfully.