TORONTO, Feb. 28 /CNW/ - Eugene Melnyk announces that on February 28,
2008, he sent the attached letter to the Board of Directors of Biovail
Corporation. Mr. Melnyk is also filing an amendment to his statement on
Schedule 13D with the U.S. Securities and Exchange Commission, to which the
letter is attached as an exhibit.
199 Bay Street
Toronto, ON M5L 1B9
February 28, 2008
Board of Directors of Biovail Corporation
c/o Biovail Corporation
7150 Mississauga Road
Mississauga, Ontario L5N 8M5
As you know, almost twenty years ago I founded Biovail, and it grew into
one of the world's leading specialty pharmaceutical companies, focused on
researching and developing state-of-the-art drug delivery technologies. As its
largest shareholder, I continue to believe in Biovail, but it saddens me to
witness the Company's decline under its current management.
In December, I met with both the Chairman and Lead Director of the Board
of Directors of Biovail and communicated to them my dissatisfaction with the
direction of the Company. In particular, I indicated my serious concerns about
the ineffective exploitation of the depth and value of the Company's world
class drug delivery technology. I requested them to consider various actions
to enhance shareholder value.
Having not received an appropriate response from the Board, I am at this
juncture formally informing the Board that I have decided to explore, and am
exploring, various options available to me in connection with my interest in
Biovail, including the possibility of joining with a partner or partners to
acquire the remaining shares of Biovail, selling all or a portion of my
current Biovail shares to a third party, continuing to hold my shares for
investment, or seeking changes to the composition of the Board of Directors.
I again expressed my concerns to a number of independent members of the
Board during a meeting on February 21, 2008. I cited specific instances of
management's failed efforts to achieve operational success and raised
questions about senior management compensation in light of Biovail's
performance. I believe many others share my concerns.
I still have great pride in and a continued commitment to the success of
Biovail even after leaving the Board last summer. I have continued in my
efforts to act in the best interest of and with a view to bettering Biovail.
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.
Having lost confidence in management and the Board, I resigned earlier
this week as a director and officer of Biovail Laboratories International
S.R.L. and Biovail Holdings International S.R.L.
I hope that that the Board, consistent with its duty to act in the best
interest of Biovail and its fiduciary duties, will deal in a timely manner
appropriately with any proposal that I or others may bring forward and will
take very seriously the concerns I have raised.
(signed) "Eugene Melnyk"
For further information:
For further information: Duncan Fulton, Fleishman-Hillard Canada,
firstname.lastname@example.org or (416) 645-3655; or Mike Sitrick, Sitrick and
Company, email@example.com or (310) 788-2850