Business Strategy

Over the years, Biovail has established a record of growth and innovation in developing products for the North American market.

Since the mid-1990s, the application of proprietary drug-delivery technologies to in-market, orally administered medications has provided Biovail, together with its partners, the opportunity to extend product life cycles through the development of enhanced formulations. However, given changes in the pharmaceutical marketplace in the U.S. (described in the New Strategic Focus section), Biovail's Board of Directors and senior management team believe that this is no longer a viable, long-term growth strategy for the Company. As such, as of May 2008, Biovail is now pursuing the development and commercialization of novel drugs that target significant unmet medical needs in specialty (niche) central nervous system (CNS) disorders.

In terms of commercialization, Biovail currently leverages strategic partners to market and/or distribute its products in the U.S., as the Company does not have its own U.S. sales force. Today, Biovail is applying this strategy successfully in the U.S. through agreements with Ortho-McNeil for Ultram® ER (a once-daily formulation of tramadol developed by Biovail); with sanofi-aventis US for Aplenzin™ and with Lundbeck Inc. for Xenazine®. As part of its New Strategic Focus, Biovail intends to establish a specialty sales force in the U.S. - the timing of which will depend on Biovail's success in acquiring and/or developing new CNS products - to promote its products to CNS specialists across the country.

The Company's direct commercialization process in Canada is focused on marketing to specialists and high-prescribing primary-care physicians in Canada. This strategy has been validated through the successful launches of Tiazac®, Tiazac® XC and the co-promotion of Celexa®. The strategy is being applied through the recent launches of Wellbutrin® XL , Glumetza®, Ralivia™ and Nitoman® .

Outside North America, the Company engages strategic partners in respect of all products.

Biovail intends to continue to exploit its pipeline through direct commercialization efforts and/or in conjunction with leading global pharmaceutical companies.