The Trading Floor

[Arctec]

Biovail To Triple Annual Dividend Payout; Gives 2007 Guidance


09:08 EST Wednesday, December 06, 2006

DOW JONES NEWSWIRES

Biovail Corp.'s (BVF) board has adopted a new dividend policy that contemplates the payment of an annual dividend of $1.50 a common share (paid quarterly in increments of 37.5 cents each), a 200% increase from its former policy.

Citing its strong financial performance this year, the Toronto specialty pharmaceutical company also declared a special cash dividend of 50 cents a share, payable Jan. 22 to shareholders of record on Jan. 10.

On April 2, 2007, Biovail plans to redeem all of its outstanding 7 7/8% senior subordinated notes due April 1, 2010. The company noted that, despite an extensive search of potential product-acquisition opportunities, it was unable to find any that satisfied its internal financial criteria. It said: "We could no longer justify a U.S.-based sales and marketing infrastructure that was not properly leveraged. Accordingly, management believes that the elimination of long-term debt, a focused and robust investment in research and development, and increasing dividends to our shareholders are more fiscally prudent uses of cash."

For 2007, Biovail expects revenue of $800 million to $850 million, share earnings of $1.70 to $1.80, and cash flow from operations of $320 million to $ 340 million.

-Carolyn King; 416-306-2100; [e-mail]


(END) Dow Jones Newswires
12-06-06 0907ET
Copyright (c) 2006 Dow Jones & Company, Inc.