UPDATE 1-Biovail unit to plead guilty in U.S. Cardizem case

(Adds details, stock price, in U.S. dollars unless noted )

TORONTO, May 16 (Reuters) - Biovail Corp (BVF.TO: Quote, Profile, Research) said on Friday that a subsidiary would plead guilty to U.S. charges it made payments to induce purchasing or ordering of the Cardizem LA heart drug.

The Canadian drug maker said the settlement with the U.S. Department of Justice eliminates any criminal liability for the parent company and allows it to continue doing business in the United States.

Biovail said the subsidiary, Biovail Pharmaceuticals, would pay $24.6 million to settle the case, which was launched to investigate the commercial launch of Cardizem.

After the statement, shares of Biovail jumped briefly but then eased. The stock was down 8 cents, or 0.6 percent, at $12.65 on the New York Stock Exchange. It was off 7 Canadian cents, or 0.6 percent, at C$12.65 in Toronto.

When a U.S. federal grand jury in Boston launched the investigation in February, observers suggested it would delve into whether physicians were paid to prescribe the treatment.

Biovail said on Friday it expects to receive "full releases for all matters" related to the investigation. It added the agreement should "immediately reduce our ongoing legal expenses."

The settlement will not affect the continued marketing of Cardizem, said Biovail, which has been plagued with lawsuits and regulatory issues for several years.

The agreement is subject to court approval at a hearing sometime after July 31. ($1=$1 Canadian) (Reporting by Jonathan Spicer; editing by Rob Wilson)