TORONTO - Biovail boosted its 2005 financial guidance on Thursday, at the same time it reported a dip in its first-quarter profits.

Biovail (TSX:BVF) said it expects to make between $1.70 US and $1.75 US a share this year. Biovail's earlier earnings guidance was for a profit of between $1.50 US and $1.60 US a share. Restructuring charges and stock-option expenses are not included in those figures.

The company also reduced its revenue guidance for 2005 to a range of $860 million US to $930 million US, down from previous guidance of $925 million US to $1 billion US.

The Toronto-based pharmaceutical company said it made $11.1 million US (7 cents a share), down from $21.1 million US (13 cents a share) a year earlier.

Revenues dropped to $175.3 million US from $186.6 million US.

Earlier this week, Biovail said it was cutting its staff by 23 per cent – eliminating about 500 jobs from its payroll – after agreeing to sell some U.S. operations and products to Kos Pharmaceuticals.

Based in Cranbury, N.J., Kos will pay Biovail $104 million US for its Teveten blood pressure products and a supply agreement on another blood pressure drug, Cardizem LA.