Bill Wells

Biovail to pay $25M in doc payoff claims

Tracy Staton — Mon, 19 May 2008 10:57:12 -0400

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 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 (photo). 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 and several former and current execs with misleading investors and puffing up financial statements.

- see Biovail's release
- read the story at CNN Money
- check out the Pharmalot item

Biovail to shut plants, mull sell-offs

Thu, 08 May 2008 06:59:58 -0400

New CEOs often clean house. Biovail's Bill Wells looks like he's trying to gut and rebuild it. The company announced it would shutter two plants in Puerto Rico as it shifts focus to specialize in central nervous system meds, "a market where unmet medical needs and growth potential are high," Wells said. Making that shift will cost the company $80 million to $100 million over the next few quarters. And Biovail is considering selling off some non-core assets, expecting proceeds of more than $100 million to help pay for its strategic shift.

To shore up the stock in the meantime, Biovail plans to buy back up to 14 million shares. And the company announced five new director candidates to refill the board, which has lost members over the past few months.

As you know, there's been upheaval at Biovail for some time now as its founder fights the company. At the same time, securities regulators are scrutinizing the Biovail and some of its ex- and current officials. Whatever Wells sets out to do, he has plenty of challenges ahead.

- check out Biovail's press release
- see the story at Report on Business
- read the Forbes article

New CEO expected to'strip' Biovail

Tue, 22 Apr 2008 06:59:56 -0400

To listen to news reports about incoming Biovail CEO Bill Wells, you'd think he was one of the horsemen of the Apocalypse. A director for three years, Wells is set to take over the helm May 1, and analysts say they're expecting him to come in swinging his sword. "I think he'll strip the company down to its bare bones and act very much like a private-equity firm," one analyst told the National Post.

Wells himself hasn't done much to quash such talk. He said Biovail needs to shrink costs to bring them into line with falling revenue. Options? The usual in pharma these days: cutting staff and closing some manufacturing facilities, he said: "Everything is on the table."

Biovail is certainly in need of help. The company has been shelling out cash on legal fees, dealing with accounting probes by both the U.S. Securities and Exchange Commission and Canadian securities watchdogs. Current and former execs have been accused of conspiring to brighten up financial results. Analysts say Biovail's pipeline looks sparse; worrisome, because generic competition is looming for Wellbutrin XL. Can Wells, a former McDonald's exec, deliver? We'll find out.

- here's the release on Wells
- read the story in the National Post
- check out the article in The Star
- get the news from the Ottawa Citizen