TORONTO - Staff of the Ontario Securities Commission (OSC) today confirmed that they are investigating suspicious trading activity, as well as conducting a full review of disclosure records, at Biovail Corp., a Mississauga, Ontario-based pharmaceutical company. The confirmation is to clarify a report in which a Biovail spokesperson dismissed talk of an OSC probe and stated that no investigation is underway.

"The company is aware of our concerns about trading in the shares of Biovail - enforcement staff has had ongoing discussions with the company since November, 2003," said Michael Watson, the OSC's Director of Enforcement. "It's imperative that we clarify the record and disclose our investigation because we don’t want investors to be misled in any way."

Watson said the OSC is prepared to move swiftly if it becomes apparent that action is required to protect investors and maintain the integrity of Ontario's capital markets. He said investigators have gathered extensive information and exchanged correspondence with people related to the matter.

In all OSC investigations, any violations of securities law can lead to disciplinary action and sanctions.

The Commission will issue additional information about this investigation when there are developments to report.