Biovail Corporation posted lower fourth-quarter net income of $115.3 million despite "record revenues," as the company dealt with restructuring costs and litigation settlements.

Net earnings per share were 72 cents, lower than analysts' forecasts of 77 cents per share, although total revenues rose seven per cent to $307.6 million.

The company, whose chairman is Ottawa Senators owner Eugene Melnyk, was hit by a $15.1-million charge related to the restructuring costs at its U.S. operations, as well as by an $11.7-million in litigation settlement costs.

Biovail earlier this month reached a comprehensive settlement with four pharmaceutical companies in a patent-litigation case involving its flagship antidepressant drug Wellbutrin XL.

The company granted Anchen Pharmaceuticals, Impax Laboratories and Anchen Pharmaceuticals exclusive licences to market generic versions of its 300-mg and 150-mg strength Wellbutrin XL drug, and dismissed its lawsuit against Impax and Watson Pharmaceuticals.

Sales of Wellbutrin XL made up nearly half of Biovail's revenues in 2005. The company is expected to lose U.S. patent protection for the product sometime this year.

"Despite the earlier-than-anticipated launch of a generic formulation of Wellbutrin XL 300-mg tablets, the strong cash-flow generation of the company's business model should allow Biovail to grow its business through focused investments in research and development, while providing the flexibility for substantial dividend payments to our shareholders," said Biovail chief executive Dr. Douglas Squires.

Excluding certain items, fourth-quarter net income for the company was $148.4 million, or 93 cents per diluted share.

Full-year net earnings were $203.9 million or $1.27 per share, while revenues for 2006 were $1.1 billion.