The wrestling match in Biovail's boardroom is getting ugly. Yesterday, founder and former CEO Eugene Melnyk called for a housecleaning on the company's board. Meanwhile, the company blamed Melnyk for its problems as it announced plans for a review and overhaul of its operations. Biovail has been plagued with government investigations, drug-development and approval problems, and even a grand-jury probe over marketing practices. While Biovail officials said selling the company isn't the focus of this operational review, it's not "off the table."
In an SEC filing, Melnyk said he would propose an alternative slate of directors at Biovail's annual meeting in June. He can't seek a seat on the board himself, but he also disclosed to the SEC that he's considering partnering up with others to buy up Biovail shares. He threatened the same in a letter to the company last month. Currently, Melnyk is Biovail's largest shareholder with about 12 percent of the outstanding stock.
- read the story in The Globe and Mail