Biovail Reports Third Quarter 2003 Financial Results - Correction -
Total revenue increased 3% for Q3 2003 versus Q3 2002 - - Total
revenues increase 14% for the nine month 2003 period versus the
comparable 2002 period - - EBITDA margins were 35% for Q3 2003 - -
Slides to facilitate the earnings call may be accessed at
www.biovail.com - TORONTO, Oct. 30 /PRNewswire-FirstCall/ --
Biovail Corporation (NYSE/TSX: BVF) announced today its financial
results for the three month and nine month periods ending September
30, 2003. Total revenues for the three months ended September 30,
2003 increased 3% to $215.3 million versus the prior year
comparable period. Total revenues for the nine months ended
September 30, 2003 were $624.0 million reflecting an increase of
14% versus the prior year comparable period. "Third quarter results
reflect a series of decisions we made to remain consistent with our
conservative approach to our financial reporting", commented Eugene
Melnyk, Chairman and CEO of Biovail. Third quarter 2003 revenue
growth was favorably impacted by a 3% increase in Product Sales
revenue versus the prior year comparable period primarily due to
Biovail's launch of Cardizem LA, Teveten HCT and Zovirax Cream as
well as the approval and recent commercialization of Wellbutrin XL
in the U.S. marketplace. Total revenue growth of 14% for the
nine-month period ended September 30, 2003 is primarily due to the
product launches described above, as well from Biovail's economic
interest in the sales of a generic version of Prilosec. "Third
quarter 2003 validates the value that Biovail's technologies can
bring to established compounds while at the same time highlights
the difficulties in transitioning into a fully integrated
pharmaceutical company rapidly while maintaining an exceptional
growth rate", commented Mr. Melnyk. "Biovail has transitioned very
rapidly towards full integration and has experienced many of the
associated growing pains. Expense controls, operational
efficiencies, logistics management and materials management are now
key elements of Biovail's internal Success Metrics. The senior
executives hired over the past several months are now in place and
can contribute to successfully completing the integration of
commercial and product development groups. During the quarter,
Biovail's Wellbutrin XL received Food and Drug Administration (FDA)
approval resulting in one of the industry's most successful
pharmaceutical product launches. Cardizem LA achieved its phase one
penetration level earlier than expected and is well positioned in
the managed care segment going forward." Net income and diluted
earnings per share for the three month and nine month periods
ending September 30, 2003 in accordance with U.S. generally
accepted accounting principles (GAAP) are as follows: Three Months
Ended Nine Months Ended September 30 September 30
------------------- -------------------- In $millions, except per
share data 2003 2002 2003 2002 --------------------------------
-------- ------- -------- --------- Net income - US GAAP $ 13.0 $
75.0 $ 75.0 $ 190.6 -------- ------- ------- -------- --------
------- ------- -------- Diluted earnings per share - US GAAP $
0.08 $ 0.49 $ 0.47 $ 1.18 -------- ------- ------- --------
-------- ------- ------- -------- Net income - US GAAP $ 13.0 $
75.0 $ 75.0 $ 190.6 Add (deduct) certain items Restructuring costs
3.2 - 3.1 - Acquired research and development 18.4 - 102.6 - Other
income - (3.3) - (3.2) Write-down of assets - 1.3 - 1.3 --------
------- ------- -------- Net income excluding certain items $ 34.6
$ 73.0 $180.7 $ 188.7 -------- ------- ------- -------- --------
------- ------- -------- Diluted earnings per share excluding
certain items $ 0.22 $ 0.47 $ 1.13 $ 1.17 -------- ------- -------
-------- -------- ------- ------- --------
-------------------------------------------------------------------------
In accordance with U.S. GAAP, third quarter 2003 net income was
$13.0 million and diluted earnings per share of $0.08 compared to
net income was $75.0 million and diluted earnings per share of
$0.49 for third quarter 2002. In accordance with U.S. GAAP for the
nine month period ended September 30, 2003, net income was $75.0
million and diluted earnings per share was $0.47 compared to net
income of $190.6 million and earnings per share of $1.18 for the
nine-month period ended September 30, 2002. Excluding certain
items, third quarter 2003 net income of $34.6 million and diluted
earnings per share of $0.22 both declined by 53% versus third
quarter 2002 net income and earnings per share of $73.0 million and
$0.47 per share excluding the expense related to the ineffective
portion of interest rate swaps. Excluding certain items, net income
of $180.7 million and diluted earnings per share of $1.13 for the
nine months ended September 30, 2003 decreased 4% and 3%
respectively compared to net income of $188.7 million and earnings
per share of $1.17 for the comparable 2002 periods excluding the
ineffective portion of interest rate swaps and a write-down of
assets related to a decline in the value of the Company's
investment in Hemispherx Biopharma Inc. Excluded acquired research
and development expenses of $18.4 million for third quarter 2003
includes a $3.1 million net charge related to a multifaceted
transaction with Ethypharm S.A. (Ethypharm) (see below) and
Biovail's $15.3 million share (49%) of the fair value of the
in-process super- bioavailable research and development programs
under development with Pharma Pass II, LLC. In addition to the
third quarter 2003 excluded acquired research and development
expense items just described, the nine month period ended September
30, 2003 also included expenses related to the second quarter 2003
acquisition of four developmental cardiovascular products from
Athpharma Limited and the acquisition of a sublingual Ativan
product and related technologies from Wyeth Pharmaceuticals Inc.
Third quarter and nine months ended September 30, 2003 U.S. GAAP
calculations of net income and fully diluted earnings per share
include reorganization costs associated with Biovail's U.S.
operation and expenses associated with the ineffective portion of
interest rate swaps. Management utilizes a measure of net income
and earnings per share on a basis that excludes certain items to
better assess operating performance. Each of the items excluded is
considered to be of a non-operational nature in the applicable
period. Management has consistently applied this measure when
discussing earnings or earnings guidance and will continue to do so
going forward. Management believes that most of the Company's
shareholders prefer to analyze the Company's results based on this
measure, as it is consistent with industry practice. Earnings
excluding certain items are also disclosed to give investors the
ability to further analyze the Company's results. 2003 Third
Quarter Activities On August 28, 2003, Biovail received final
approval from the FDA for Wellbutrin XL, the once daily
anti-depression product manufactured by Biovail for
commercialization in the U.S. by GlaxoSmithKline (GSK). GSK's
marketing initiatives began the first week of September with
pharmacy calls and the product began shipping to wholesalers a week
later. Recent tracking data shows Wellbutrin XL capturing
approximately 49,500 prescriptions for the week ending October 24,
2003 and a New Prescription capture rate of approximately 33% for
October 23, 2003. During third quarter 2003, Biovail and Pharma
Pass II, LLC established a joint venture to develop a number of
super-bioavailable products. Biovail invested $30.6 million to
acquire a 49% interest in the joint venture and Pharma Pass II, LLC
contributed all of its intellectual property, formulations and
scientific know-how related to the super-bioavailable products to
acquire its 51% interest. Given that it has an option to purchase
the joint venture, Biovail has determined that it will be fully
consolidating this entity in its financial statements, recording
100% of the research related expenses on its income statement,
reflecting Pharma Pass II, LLC's ownership interest (51%) as
minority interest on its income statement and reflecting any cash
held by the entity as restricted cash on its balance sheet. In
April 2002, Biovail licensed the rights to Ethypharm's tramadol
Flashtab product. Tramadol Flashtab is an orally-disintegrating
tablet (ODT) offering ease of administration. Biovail is in the
process of completing relevant studies and expects to file a New
Drug Application (NDA) immediately. Biovail believes this product
complements its parallel research activity on its tramadol
controlled-release product (tramadol XL) for which recently
completed clinical results are being analyzed. Filing for tramadol
XL is expected by year-end. In September 2003, Biovail paid $21
million to eliminate any future milestone and royalty obligation
related to this product. Biovail has also agreed, subject to
certain conditions, to subscribe to a maximum of $20 million of
convertible and/or exchangeable bonds of Ethypharm during the
fourth quarter 2003. In addition, Biovail entered into a
multifaceted transaction with Ethypharm including the licensing to
Ethypharm of the international rights to Diltiazem LA and provided
the initial $15 million supply of Diltiazem LA to Ethypharm.
Furthermore, Biovail has substantially improved its rights in the
shareholder agreement to better protect its investment. Lastly,
Biovail granted Ethypharm a right of first offer to market
Wellbutrin XL in all countries outside of North America that are
not optioned by GlaxoSmithKline (Glaxo). Biovail entered into a
lease for 110,000 square foot of office space in Bridgewater, New
Jersey during third quarter 2003. This facility will accommodate
Biovail's U.S. Sales and Marketing Division, formerly located in
Raleigh, North Carolina, as well as select functions within the
Research and Development Division currently residing in Chantilly,
Virginia. The objective of integrating sales and marketing with
R&D is streamlining the product development process and
ensuring that developed products will satisfy patient needs. Hiring
continues and approximately 100 staff should be located in the new
facility towards the end of 2003. The addition of seven senior
executives earlier this year complements the final step in
Biovail's transition to a fully integrated pharmaceutical company.
While the facility in Virginia will be maintained, Biovail will be
closing the North Carolina facility as a result of the integration
of these two groups. Transitional and restructuring costs
associated with this program are on-going and will be included
within Biovail's Selling, General and Administrative expenses. A
late third quarter 2003 shipment of Wellbutrin XL involved in an
accident outside of Chicago was returned to Biovail's facility on
October 8, 2003 for inspection. No revenue was recognized from this
shipment in Q3 2003. The shipment included both bulk and fully
packaged material. All bulk tablets, which are packaged in plastic
drums, were salvaged and have already been shipped to GSK. A small
portion of the packaged goods (less than 1,000 bottles) was
effected in the accident and could not be re-shipped. The Company
has an economic interest in the Gross Margin of a generic version
of Prilosec that is distributed under license in the U.S. In the
third quarter, additional generic competition entered the market.
Due to the additional competition, the licensee offered rebates to
wholesalers. These rebates have the affect of reducing Gross Margin
and had a negative impact to Biovail's third quarter 2003 relative
to Biovail's prior expectations. Biovail does not know if further
rebates will be offered or if the licensee has processed all
rebates. Biovail was able to secure additional quantities of
branded Cardizem CD during the 2003 third quarter from Aventis
Pharmaceuticals Inc. (Aventis). Aventis manufactures and supplies
Cardizem CD to Biovail for distribution in the U.S. Backorders were
approximately $20 million at the end of September 2003. Based on
current production schedules, Biovail believes backorders for this
product will be less than $1 million. Financial performance To
provide greater financial clarity and ease in measuring areas of
organic growth, Biovail will be describing its Product Sales
revenue in the following categories: Core Products - includes
Cardizem LA, Zovirax products and Teveten products. Wellbutrin XL
Biovail Pharmaceuticals Canada (BPC) 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 Biovail details Core
Products (in the U.S) and BPC Products (in Canada) directly to
physicians through its own network of integrated sales represents.
Both of these categories, as well as Wellbutrin XL are growing and
are expected to experience significant future growth. Legacy
Products are not promoted as most of these products have been
genericized. As anticipated, these products are declining
marginally quarter over quarter. However, there are several
products in this group that continue to have substantial patient
utilization and excellent brand awareness. These products/brands
may create future growth opportunities given on-going clinical
programs designed to meaningfully enhance the product's
performance. In a separate press release today, Biovail has
provided financial guidance in the same format, which should
provide ease in monitoring Biovail's future financial performance.
Product sales performance Product sales increased 3% for the third
quarter to $180.0 million and 1% to $464.6 million for the nine
months ended September 30, 2003. Core Product sales revenue was
$60.1 million or 33% of total Product Sales revenue for third
quarter 2003 versus $18.1 million or 10% of total Product Sales
revenue for the comparable 2002 period. The increase in Core
Product sales revenue reflects the launch of Cardizem LA, Teveten
HCT and Zovirax Cream during 2003. Wellbutrin XL product sales
revenue was $8.2 million for third quarter 2003 and $16.3 million
for the nine months ended September 30, 2003. Biovail receives a
percentage of Glaxo's net sales as revenue for supplying trade
supplies of Wellbutrin XL. Biovail also is paid for bulk sample
product that is produces and supplies to Glaxo. Samples are sold at
a contractually agreed price at approximately Biovail's
manufacturing cost. Product sales revenue by Biovail
Pharmaceuticals Canada (BPC) during the 2003 third quarter of $23.1
million reflected 154% growth versus the third quarter 2002 level
of $9.1 million. Product sales revenue by BPC represented 13% of
total Product Sales and were $61.8 million for the nine months
ended September 30, 2003. The primary growth drivers are Tiazac as
well as revenues from Wellbutrin SR and Zyban, which were acquired
at the end of 2002. Product sales revenue from Legacy Products was
$68.2 million and $172.4 million for the third quarter and nine
months ended September 30, 2003 respectively and represented 38%
and 37% of total Product Sales for the same respective periods.
Legacy Product revenue for the three months ended September 30,
2003 reflected period over comparable 2002 period reductions of 58%
for Tiazac and 34% for Cardizem CD. These declines were partially
offset by a 14% increase in other Legacy Products due to the
acquisition of Ativan/Isordil such that the decline in total Legacy
Products for the comparable 2003 and 2002 three month periods was
22%. Product sales revenue from controlled-release generics were
$20.4 million and $75.5 million for the three month and nine month
periods ended September 30, 2003. Product sales revenue from
controlled-release generics were $60.4 million and $129.1 million
for the three and nine month periods ended September 30, 2002. In
summary:
-------------------------------------------------------------------------
($ Millions) Q3 2003 Sales Percent of total Growth Rate vs Q3 2002
-------------------------------------------------------------------------
Core Products $60.1 33% 232%
-------------------------------------------------------------------------
Wellbutrin XL $8.2 5% N/A
-------------------------------------------------------------------------
BPC Products $23.1 12% 154%
-------------------------------------------------------------------------
Legacy Products $68.2 38% (22%)
-------------------------------------------------------------------------
Generics $20.4 11% (66%)
-------------------------------------------------------------------------
Total Product Sales $180.0 100% 3%
-------------------------------------------------------------------------
Research and development (R&D) revenues were $4.5 million and
$10.8 million for the three months and nine months ended September
30, 2003 and compared to $7.7 million and $19.2 million for the
comparable 2002 periods. The 2003 decline in R&D revenues is
primarily due to R&D revenue in 2002 that was received from GSK
related to the development of Wellbutrin XL. Co-promotion, royalty
and licensing revenue was $30.8 million for third quarter 2003 and
compared to $26.8 million for the comparable 2002 period.
Co-promotion, royalty and licensing revenue of $148.5 million for
the nine months ended September 30, 2003 compared to $68.0 million
for the 2002 comparable period. The increase in these revenues
primarily relates to the Company's economic interest in the sales
of a generic version of Prilosec. The Company earned $15.3 million
and $91.8 million during the three and nine month periods ended
September 30, 2003 from this economic interest. Gross margins on
total Product Sales were 78% and 81% for the three and nine month
periods ended September 30, 2003 and compared to 75% and 74% for
the prior year comparable period. Gross margins were favorably
impacted by sales mix of higher margin products (Cardizem LA and
Zovirax) offset partially by the lower margins associated with the
Wellbutrin line due to mix (trade versus sample) and initial
inefficiencies that are expected to improve both due to yield
increases and recently approved larger batch sizes. Research and
development expenses increased by 41% and 53% to $20.6 million and
$60.4 million for the three and nine month periods ended September
30, 2003. The increase in Research and development expenses
primarily relates to a significant increase in the number of
on-going developmental programs (venlafaxine, fenofibrate,
acyclovir, simvastatin, sumatriptan, Hepacol, lorazepam and four
chrono-therapeutic cardiovascular products) as well as two recently
completed Phase III clinical trials on tramadol XL. Selling,
general and administrative expenses were $76.7 million for the
third quarter 2003 versus $56.9 million for the second quarter 2003
and versus $44.9 million for third quarter 2002. Selling, general
and administrative expenses were $179.8 million for the nine month
period ended September 30, 2003 versus $123.2 million for the
comparable 2002 period. The significant increase in selling,
general and administrative expenses is due to a number of factors.
During the 2003 third quarter, Biovail incurred initial expenses
related to the transition of its commercial operations group from
Raleigh to Bridgewater, New Jersey. This initiative also includes
transitioning the research and development executive leadership and
select research and development functions from Chantilly Virginia
to the Bridgewater facility as well. Costs associated with this
initiative were in excess of $3.0 million during Q3 2003 and were
primarily due to employee relocation and severance costs. There
will be further costs associated with these activities. On-going
U.S. salary and benefit costs have risen by 50% for the comparable
nine month 2003 and 2002 periods. Advertising and promotion costs
have also increased significantly given the launches of Cardizem
LA, Teveten HCT and Zovirax Cream. Previously deferred advertising
and promotional expenses related to Zovirax Cream were expensed in
third quarter 2003 given the launch of this product in July 2003.
At the end of the third quarter, the Company did not have any
deferred advertising and promotional expenses. Biovail recorded
significant expenses related to the co-promotional efforts of
Reliant Pharmaceuticals, LLP (Reliant). During the initial launch
phase of Cardizem LA, Reliant provided an additional 250 sales
representatives. As Biovail pays Reliant a percentage on the sales
of basket of products, including Cardizem LA, these costs are
escalating given the rising level of Cardizem LA revenue. As the
initial launch phase for Cardizem LA has past, Biovail is
evaluating the costs, benefits and its options related to this
arrangement. Amortization expense was $28.2 million and $114.7
million for the three and nine month periods ending September 30,
2003 respectively versus $16.0 million and $42.5 million for the
three and nine month periods ending September 30, 2002. The
increases primarily reflect the incremental amortization related to
our economic interest in a generic version of Prilosec. On June 30,
2003, it was determined that Biovail's interest rate swaps no
longer qualified as highly effective hedges. Subsequent to
September 30, 2003, Biovail believed that the interest rate swaps
could qualify as highly effective hedges and anticipated
reinstating the application of hedge accounting effective July 1,
2003. However, though the swap was believed to be effective at July
1, it was subsequently determined that the reinstatement date used
must be October 1, 2003. This resulted in recording a $4.7 million
loss of fair value on the swaps that would otherwise have been
offset by a reduction on the fair value of the loans. Cash flow
from operations increased 40% at September 30, 2003 to $244.1
million versus $174.2 million at June 30, 2003. Earnings before
interest, tax, depreciation and amortization (EBITDA) excluding
certain items increased to $341.7 million for the nine month period
ending September 30, 2003 reflecting an increase of 25% versus the
comparable 2002 period. Biovail management will host a conference
call and webcast on Thursday, October 30th, 2003 at 8:00 a.m. EST
for company executives to discuss 2003 third quarter earnings.
Following the discussion, Biovail executives will address inquiries
from research analysts. A presentation will be used to facilitate
today's call, which can be accessed through the Investor Relations
section of the Biovail web site. A live webcast of this call will
also be available through the Investor Relations section of the
Biovail web site at http://www.biovail.com/. Alternatively, please
dial 1-800-299-7635 (North America.) or 1-617-786-2901 for
International callers, with passcode 96026666, to access the
conference call. A replay of the conference call will be available
until 7:00 p.m. EST on Thursday, November 6th, 2003 by dialing
1-888-286-8010 (North America) or 1-617-801-6888 for International
callers, using access code, 32225542. 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. "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.
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 Nine Months
Ended September 30 September 30 -----------------------
----------------------- 2003 2002 2003 2002 ----------- -----------
----------- ----------- REVENUE Product sales $ 179,985 $ 174,508 $
464,629 $ 462,150 Research and development 4,542 7,653 10,815
19,168 Co-promotion, royalty and licensing 30,787 26,783 148,543
68,010 ----------- ----------- ----------- ----------- 215,314
208,944 623,987 549,328 ----------- ----------- -----------
----------- EXPENSES Cost of goods sold 40,079 44,007 88,823
121,014 Research and development 20,608 14,626 60,427 39,547
Selling, general and administrative 76,733 44,922 179,839 123,240
Amortization 28,243 15,994 114,650 42,522 Acquired research and
development 18,409 - 102,609 - Settlements - - (34,055) -
Write-down of assets - 1,369 - 1,369 ----------- -----------
----------- ----------- 184,072 120,918 512,293 327,692 -----------
----------- ----------- ----------- Operating income 31,242 88,026
111,694 221,636 Interest income 1,191 298 5,893 2,859 Interest
expense (10,540) (10,956) (30,029) (22,753) Other income (expense)
(5,958) 3,309 706 3,243 ----------- ----------- -----------
----------- Income before provision for income taxes 15,935 80,677
88,264 204,985 Provision for income taxes 2,950 5,700 13,300 14,400
----------- ----------- ----------- ----------- Net income $ 12,985
$ 74,977 $ 74,964 $ 190,585 ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- Diluted
earnings per share $ 0.08 $ 0.49 $ 0.47 $ 1.18 -----------
----------- ----------- ----------- ----------- -----------
----------- ----------- Net income $ 12,985 $ 74,977 $ 74,964 $
190,585 Add (deduct) certain items Restructuring costs 3,156 -
3,156 - Acquired research and development 18,409 - 102,609 - Other
income - (3,309) - (3,243) Write-down of assets - 1,369 - 1,369
----------- ----------- ----------- ----------- Net income
excluding certain items (Note) $ 34,550 $ 73,037 $ 180,729 $
188,711 ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- Diluted earnings per share
excluding certain items (Note) $ 0.22 $ 0.47 $ 1.13 $ 1.17
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- Weighted average number of
common shares outstanding (000s) 160,426 154,016 160,115 161,235
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- Note Management utilizes a
measure of net income and diluted earnings per share that excludes
certain items. This measure is a non-GAAP measure that does not
have a standardized meaning and, as such, is not necessarily
comparable to similarly titled measures presented by other
companies. Management has consistently applied this measure when
discussing earnings or earnings guidance and will continue to do so
going forward. This measure is provided to assist our investors in
assessing the Company's operating performance. Management
understands that many of our investors prefer to analyze the
Company's results based on this measure, as it is consistent with
industry practice. Investors should consider this non-GAAP measure
in the context of the Company's U.S. GAAP results. BIOVAIL
CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (All dollar
amounts are expressed in thousands of U.S. dollars) (Unaudited)
September 30 December 31 2003 2002 ------------- -------------
ASSETS Cash and cash equivalents $ 43,289 $ 56,080 Other current
assets 359,536 265,551 Long-term investments 102,035 79,324
Property, plant and equipment, net 165,551 136,784 Goodwill, net
102,448 102,212 Intangible assets, net 1,116,580 1,080,503 Other
assets, net 147,080 113,350 ------------- ------------- $ 2,036,519
$ 1,833,804 ------------- ------------- ------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $ 341,598
$ 345,158 Deferred revenue 15,350 18,200 Minority interest 15,346 -
Long-term obligations 701,605 624,760 Shareholders' equity 962,620
845,686 ------------- ------------- $ 2,036,519 $ 1,833,804
------------- ------------- ------------- ------------- BIOVAIL
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (All
dollar amounts are expressed in thousands of U.S. dollars)
(Unaudited) Nine Months Ended September 30
--------------------------- 2003 2002 ------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 74,964 $ 190,585
Add (deduct) items not involving cash Depreciation and amortization
126,645 50,385 Amortization of deferred financing costs 2,103 2,016
Amortization of discounts on long-term obligations 5,461 3,928
Acquired research and development 102,609 - Other items not
involving cash (622) (375) ------------- ------------- 311,160
246,539 Net change in non-cash operating items (67,100) (4,638)
------------- ------------- Cash provided by operating activities
244,060 241,901 CASH FLOWS FROM INVESTING ACTIVITIES (295,931)
(498,123) CASH FLOWS FROM FINANCING ACTIVITIES 37,958 (33,654)
Effect of exchange rate changes on cash and cash equivalents 1,122
36 ------------- ------------- Decrease in cash and cash
equivalents (12,791) (289,840) Cash and cash equivalents, beginning
of period 56,080 434,891 ------------- ------------- Cash and cash
equivalents, end of period $ 43,289 $ 145,051 -------------
------------- ------------- ------------- DATASOURCE: Biovail
Corporation CONTACT: please contact, Ken Howling at (905)-286-3000
or send inquiries to .
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