New CEOs often clean house. Biovail's Bill WellsÂ 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 membersÂ 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.
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