Vote Your BLUE Proxy Now
TORONTO--(BUSINESS WIRE)--June 9, 2008--Biovail Corporation (NYSE,
TSX: BVF) today advised its approximately 56,000 shareholders to
disregard the latest efforts by Eugene Melnyk to take control of the
Company by installing his personally selected nominees on the Board of
Directors at Biovail's Annual Meeting of Shareholders on June 25,
2008.
Biovail will respond as necessary to the misinformation in today's
letter from Mr. Melnyk who, along with an entity he controls, are the
so-called "concerned shareholders" seeking control of Biovail.
In the interim, Biovail notes:
-- Mr. Melnyk ignores the fact that Biovail's New Strategic Focus
is described in detail in the Company's Management Proxy
Circular dated May 9, 2008. The benefits of the new direction
far outweigh any argument by Mr. Melnyk in favour of a return
to an obsolete and uncertain plan.
-- Mr. Melnyk, as the dissident shareholder, personally approved
his nominees to the Board. No one else could have. Therefore,
it is simply not credible for him to claim they are not
"hand-picked". By attempting to gain control of the Board, he
is trying to put himself in a position where he can pursue his
personal interests rather than the long-term interests of
other shareholders.
-- Mr. Melnyk continues to overlook the more than 65% decline in
shareholder value that occurred while he was Chief Executive
Officer (CEO) and the continued deterioration which followed
that period as the Company was forced to deal with mounting
litigation and failed new product development for which he was
directly responsible.
-- Mr. Melnyk, on the one hand, discusses his role in the senior
management of the Company which ended only in February 2008
while, on the other, absolves himself of all responsibility
for management since 2004. He cannot do both.
-- Mr. Melnyk continues to claim he is retired, a statement that
is irrelevant to his influence over the nominees he has
hand-picked to represent him on the Board, should he be
successful in his proxy contest.
There can be no doubt that Mr. Melnyk wants to regain control of
Biovail and continues to attempt to mislead and distract shareholders
from his true intentions.
Biovail shareholders should reject Mr. Melnyk's efforts and elect
the Company's experienced and independent nominees, who can continue
to take the steps that can build shareholder value.
"The fact is that Biovail is already better - a far better company
in terms of strategic direction and corporate governance - than it was
when Eugene Melnyk was CEO," said Dr. Douglas Squires, Chairman of the
Board of Directors. "We have a stronger Board overseeing an
accomplished management team and with a demonstrated commitment to the
interests of all 56,000 Biovail shareholders. We advise those
shareholders to examine the facts, rather than the selective
interpretation from Mr. Melnyk."
Voting in Favour of Biovail Nominees
Biovail continues to urge all shareholders to vote their BLUE form
of proxy in favour of the election of Biovail's slate of director
nominees. Shareholders with any questions or requiring assistance in
completing their BLUE form of proxy are asked to contact Biovail's
proxy solicitation agent, Georgeson, North American toll-free at
1-866-676-3028. Your vote is extremely important. To be effective,
your BLUE proxy must be received before and no later than 10:00 a.m.
(Toronto time) June 23, 2008. We recommend voting by internet,
telephone or facsimile today, or at least 24 hours in advance of the
proxy cut-off.
Caution Regarding Forward-Looking Information and "Safe Harbor"
Statement
To the extent any statements made in this release contain
information that is not historical, these statements are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and may be forward-looking
information under applicable Canadian provincial securities
legislation (collectively, "forward-looking statements"). These
forward-looking statements relate to, among other things, the
Company's objectives, goals, targets, strategies, intentions, plans,
beliefs, estimates, outlook and guidance, including, without
limitation, statements concerning the Company's New Strategic Focus,
including the Company's intention and ability to implement and
effectively execute elements of its New Strategic Focus and the
anticipated impact of the Company's New Strategic Focus and can
generally be identified by the use of words such as "targets",
"guidance", "believe," "anticipate," "expect," "intend," "plan,"
"will," "may" and other similar expressions. In addition, any
statements that refer to expectations, projections or other
characterizations of future events or circumstances are
forward-looking statements.
Although Biovail believes that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties, and undue reliance should not be placed on
such statements. Certain material factors or assumptions are applied
in making forward-looking statements, including, but not limited to,
factors and assumptions regarding the election of Biovail's slate of
directors at its upcoming shareholders meeting, the efficiency of the
Company's infrastructure and cost rationalization, prescription
trends, pricing and reimbursement in the therapeutic area of focus the
Company selects, timelines associated with the development of, and
receipt of regulatory approval for, the Company's products, the
competitive landscape in the markets in which the Company competes,
and actual results may differ materially from those expressed or
implied in such statements. Important factors that could cause actual
results to differ materially from these expectations include, among
other things: the difficulty of predicting U.S. Food and Drug
Administration, Canadian Therapeutic Products Directorate and European
regulatory approvals, acceptance and demand for new pharmaceutical
products, the impact of competitive products and pricing, new product
development and launch, reliance on key strategic alliances,
availability of raw materials and finished products, the regulatory
environment, tax rate assumptions, the outcome of legal proceedings
and settlements thereto, fluctuations in operating results, the
availability of capital and satisfaction of applicable laws for
dividend payments, the market liquidity of Biovail common shares and
the satisfaction of applicable laws relating to the acquisition by the
Company of its common shares, the proxy contest in connection with the
election of the board of directors at the upcoming shareholders
meeting and other risks detailed from time to time in the Company's
filings with the U.S. Securities and Exchange Commission and the
Canadian Securities Administrators, as well as the Company's ability
to anticipate and manage the risks associated with the foregoing.
Additional information about these factors and about the material
factors or assumptions underlying such forward-looking statements may
be found in the body of this news release, as well as under the
heading "Risk Factors" contained in Item 3(D) of Biovail's most recent
Annual Report on Form 20-F.
The Company cautions that the foregoing list of important factors
that may affect future results is not exhaustive. When relying on
Biovail's forward-looking statements to make decisions with respect to
the Company, investors and others should carefully consider the
foregoing factors and other uncertainties and potential events.
Biovail undertakes no obligation to update or revise any
forward-looking statement.
About Biovail Corporation
Biovail Corporation is a specialty pharmaceutical company, engaged
in the formulation, clinical testing, registration, manufacture, and
commercialization of pharmaceutical products utilizing advanced
drug-delivery technologies. For more information about Biovail, visit
the Company's Web site at www.biovail.com.
For further information, please contact Nelson F. Isabel at
905-286-3000 or send inquiries to [email protected].
CONTACT: Biovail Corporation
Nelson F. Isabel, 905-286-3000
Vice-President, Investor Relations
& Corporate Communications
SOURCE: Biovail Corporation
