Biovail founder Eugene Melnyk is giving up the fight. After dogging the company for months--and winning a court order requiring shareholders to re-vote on his proposals--Melnyk said he was abandoning his plan to kick out Biovail's board of directors to bring in his own management. Instead, he'll push forward with plans to start his own drug company.
Analysts weren't totally surprised by the move, even though it came shortly after his court victory last week. "He didn't have a lot of momentum," one said. "Even with the court's decision there wasn't a lot going in his favor and he can't have expected a huge swing in his direction."
Biovail management has to be breathing a sigh of relief. Between regulators and Melnyk, the company has had plenty to contend with lately.
- see the New York Times story