At the end of FY09, Biovail had cash balance of $114.5 million.  The company had $350 million in Convertible Notes outstanding, other long-term obligations of $27.8 million representing the balance of the purchase price arising from the acquisition of the worldwide development and commercialization rights to tetrabenazine in June 2009, and no outstanding borrowings under its committed $410 million revolving credit facility, which represents a reduction of $55 million relative to the end of 3Q09.

Cash flows from operations were $127.6 million in 4Q09 and $360.9 million in FY09, compared with $107.0 million in 4Q08 and $204.3 million in FY08.

Net capital expenditures were $4.7 million in 4Q09 and $7.4 million in FY09, compared with $0.7 million and $22.0 million in the corresponding periods in 2008, respectively.  Capital expenditures are expected to remain at these levels going forward as a result of the planned or completed closures of the company’s facilities in Puerto Rico and Ireland, and the availability of capacity in its Steinbach, Manitoba manufacturing facility.  In FY10, Biovail anticipates capital expenditures to be approximately $10 million.

Share Repurchase:  Biovail’s Board of Directors approved in August 2009 a Share Repurchase Program of up to 15.8 million common shares, representing approximately 10% of the company’s total outstanding shares, subject to a maximum of $75 million of common shares being repurchased during any fiscal year.  This repurchase commenced from August 12, 2009.  Under the Share Repurchase Program, Biovail may repurchase shares for cash on the open market from time to time.  The Share Repurchase Program will terminate on August 11, 2010, or when Biovail completes its purchases.
 

In November 2009, Biovail completed the sale-and-leaseback of its corporate headquarters in Mississauga, Ontario, for net cash proceeds of $17.8 million, recognizing a loss on disposal of $11.0 million in 4Q09.  Biovail will continue to occupy the facility under a 20-year operating lease at market rental In rates.

January 2010, Biovail completed the sale of its Dorado, Puerto Rico manufacturing facility for net cash proceeds of $8.5 million.  The company will continue to occupy the facility until March 31, 2010, during which time any remaining manufacturing and packaging processes will be transferred to Biovail’s Steinbach facility.  The Carolina, Puerto Rico facility is expected to remain open indefinitely, in order to meet higher anticipated demand for generic Tiazac and generic Cardizem CD products, due to manufacturing issues involving competitors’ products.

Biovail is now targeting in excess of $70 million (previously $80 million to $90 million) in total proceeds from the divestiture and monetization of non-core assets.  As of the end of 4Q09, the company realized $63.1 million of this goal.
 

The company continues to suffer from inventory concerns and low pipeline visibility.