BVF
Surprised that nobody posted this news. Apparently BVF Melnyk made similar threats several years ago, and nothing came of it. So take this with a grain of salt.
Biovail Founder May Seek Changes at Co.
Thursday February 28, 4:32 pm ET
Biovail Corp.'s Founder Eugene Melnyk May Propose Buyout, Seek Board Changes or Sell Stake
NEW YORK (AP) -- The founder and largest shareholder of Canadian drug maker Biovail Corp. said Thursday he may propose a possible buyout of the company, sell his stake to a third party or seek changes on the board in an effort to enhance shareholder value.
In a letter sent to the company's board and filed with the Securities and Exchange Commission, Eugene Melnyk said he is saddened by the company's decline under current management. Melnyk said he previously expressed his dissatisfaction with the company's direction to the chairman and lead director and requested that they consider various actions to increase shareholder value, but that he has not received an appropriate response.
"The corporate governance initiative I helped design and then so vigilantly enforced should have taken Biovail to a whole new level of excellence, but current management fails to properly effectuate that initiative," Melnyk wrote.
Melnyk, who owns 18.8 million shares, or an 11.6 percent stake in the company, said he believes many others share his concerns.
Over the past several years, the company has been entangled in patent challenges and become the subject of SEC regulatory probes.
Biovail shares jumped 80 cents, or 5.8 percent, to close at $14.72. Shares have traded between $11.79 and $26.48 in the past 12 months.
