CIBC World Markets Equity Research Downgrades Target Price of BVF from $12.00 to a Staggering Low of $7.50 Based on Potential Incumbent Win in Proxy Battle



    Not too late to Protect Your Investment and Vote for A Better Biovail

    TORONTO, June 20 /CNW/ - The Concerned Shareholders remind fellow
shareholders of Biovail that it is not too late to vote your YELLOW proxy for
a Better Biovail. It is more than clear that change is needed. Industry
experts, CIBC World Markets - Equity Research, have today changed their
recommendation for BVF to sector underperformer based on the proposed strategy
of the Company going forward proposed by the Incumbent Board and management
team.

    
    According to CIBC, the reasons for this downgrade include:

    (*) "Biovail's poor growth prospects, limited pipeline visibility and our
        expectation for a long restructuring lead us to believe that Biovail
        will underperform its peers going forward.
    (*) In addition, we believe that Biovail's dividend policy is not
        sustainable. We forecast declining cash flows and hold the view that
        the company will need to use its cash to support distributions in the
        near term. We would rather see the company preserve its capital for
        eventual acquisitions.
    (*) We also have modest expectations as it relates to Biovail's new focus
        on Central Nervous System (CNS) disorders, as we view the clinical
        development risks as relatively high and the existing market as
        highly competitive. The CNS market is also highly genericized."
    

    Furthermore, the report goes on to state that, "we believe the likelihood
of a reduction or elimination of the dividend is quite high." CIBC wonders how
"the company's current product portfolio will generate sufficient cash flows
to support the payments given our impression that some of the company's
products may be facing generic competition in the near term." Finally CIBC
"fails to see how paying ~$240 million/year in dividends makes sense given the
company's new strategy."
    The Concerned Shareholders urge all shareholders to read the CIBC report
in its entirety and agree with CIBC's analysis. The Concerned Shareholders
fully align with CIBC's analysis that should the Incumbent Board and
management win the proxy battle the price for BVF will dramatically fall. The
status quo at Biovail is simply not acceptable. It is time to protect your
investment and vote for change at Biovail.
    It is not too late to cast your YELLOW proxy and support a forward
thinking and innovative plan that relies on the leadership of independent,
trusted and successful pharmaceutical sector entrepreneurs with a plan to
evolve with the rate of change in the industry.
    Even if you have already voted in favour of management, you may change
your vote by completing and submitting a YELLOW proxy dated later than the
previously submitted proxy.
    For further information on how to vote your YELLOW proxy please visit
www.betterbiovail.com and click on 'vote now'.




For further information:

For further information: Canadian Media: Duncan Fulton, (416) 645-3655,
Duncan.fulton@fleishman.ca; US Media: Mike Sitrick, (310) 788-2850,
Mike_sitrick@sitrick.com

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A BETTER BIOVAIL

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CONCERNED SHAREHOLDERS OF BIOVAIL

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