Biovail Corp. posted a 37.1-per-cent jump in first-quarter profits to US$93.8 million or 58 cents a share, despite a slight drop in sales of its best-selling depression treatment Wellbutrin XL as other companies won the right to market generic versions of the drug.

Analysts had been expecting earnings of 41 cents per share.

The Toronto-based company's revenues rose by 12 per cent to $238 million, boosted by a 99-per-cent jump in sales of its chronic-pain medication Ultram ER to $30 million.

"Despite the loss of exclusivity on the 300mg strength of Wellbutrin XL, we have begun 2007 on solid footing," said Biovail chief executive Dr. Douglas Squires in a statement. "Biovail's business remains strong. Our confidence in Ultram ER is further supported by recent prescription trends, and with an FDA action date for (a new salt formulation of its antidepressant drug) and a maturing development pipeline, Biovail is entering a new-product cycle that should drive long-term growth for the company."

The company noted that it had restated its 2006 financial results to reflect a $7.7-million understatement of its income in 2006 and a $10.2-million understatement in 2005. As a result of the restatement, net income in 2006 was $211.6 million, while earnings in 2005 totalled $246.4 million.

Biovail said it had miscalculated its earlier statements because of a data error related to the tracking of its Zovirax herpes drug, and to the calculation of amortization expenses for a long-term asset.

The company maintained its 2007 guidance for total revenues of $800 million to $850 million, and diluted per-share earnings of $1.70 to $1.80, excluding specific items.

Biovail's founder and non-executive chairman Eugene Melnyk is currently being investigated by the Ontario Securities Commission in relation to insider trading allegations. An OSC panel on Tuesday rejected Mr. Melnyk's settlement agreement.

Shares of the company rose 10 cents to $24.78 at 11:51 a.m.