Toronto-based drug giant Biovail Corp. slipped into the red in its second-quarter results released Tuesday despite a 17-per-cent jump in revenues.

The company, run by new Ottawa Senators owner Eugene Melnyk, reported a net loss of $1 million, or a penny a share. That compared with a net profit in last year's Q2 of $62.6 million, or 39 cents a share (all figures in U.S. dollars).

Biovail attributed the loss to write-offs of acquired research and development.

Excluding the writeoffs, Biovail achieved an operating profit of $83.2 million, or 52 cents a share.

Revenues rose to $217.3 million from $185.1 million thanks to the launch of Biovail's Cardizem heart drug in April and the strength of anti-depression treatment Wellbutrin XL. Canadian sales of a generic version of heartburn drug Prilosec also contributed.

"The dramatic increase in market share for Biovail's Cardizem franchise from seven per cent to over 11 per cent in the 16 weeks since the launch of Cardizem LA has surpassed our expectations," Melnyk, the company's chairman and CEO, said in a statement.

"The recent confirmation of September 3, 2003 as the (U.S.) Food and Drug Administration's target date for the approval of Wellbutrin XL, the first and only once-daily anti-depressant with a low incidence of sexual dysfunction and weight gain, should contribute to strong organic growth for Biovail in the coming quarters," he added.