Biovail to pay $25M in doc payoff claims

If only this were the last bit of old business Biovail needed to clear. In a deal with the U.S. Department of Justice, the Canadian drugmaker agreed to pay almost $25 million to settle claims that it paid docs and their office managers to get patients onto its Cardizem heart drug. CEO Bill Wells [1] sounded pleased about the deal, saying that it "eliminates the significant exposure to the corporation" and would "immediately reduce our ongoing legal expenses."

And what a bunch of legal expenses they've been. Biovail has been under investigation by various government watchdogs and plagued by an ongoing fight with its founder and ex-chief Eugene Melnyk [2] (photo [3]). Little by little, the company has been extricating itself from these legal snarls, but it's not finished yet: the U.S. Securities and Exchange Commission charged the company [4] and several former and current execs with misleading investors and puffing up financial statements.

- see Biovail's release [5]
- read the story [6] at CNN Money
- check out the Pharmalot item [7]

Related Articles:
Biovail picks Wells as CEO [1]
Biovail stock craters on SEC charges [4]
Melnyk slams Biovail board, calls for change [2]
Biovail drug launch draws feds' scrutiny [8]
Biovail's Melnyk to step down amid SEC probe [9]