RiskMetrics Notes Current Board and Management "Are Well Versed in
Taking the Tough Business Decisions That Will Allocate Resources in
the Most Value Enhancing Areas"
RiskMetrics Notes Current Board "Has Undertaken Appropriate Steps
to Enhance Depth of Experience and Independence"
RiskMetrics Says "Mr. Melnyk Was in Fact CEO of BVF from December
2001 to October 7, 2004 and Therefore the Senior Executive Responsible
and Accountable for Company Performance..."
TORONTO--(BUSINESS WIRE)--June 16, 2008--Biovail Corporation
(NYSE, TSX: BVF) today announced that RiskMetrics Group (formerly
Institutional Shareholder Services or "ISS") recommends that Biovail
shareholders vote FOR the Company's slate of director nominees at the
upcoming Annual Meeting of Shareholders on June 25, 2008.
In recommending that Biovail shareholders vote FOR Biovail's
director nominees, RiskMetrics states*:
-- "the current board and management team are well versed in
taking the tough business decisions that will allocate
resources in the most value enhancing areas while availing
themselves of the necessary industry expertise necessary to
implement their new strategic focus."
-- "the current board has undertaken appropriate steps to enhance
depth of experience and independence, as well as availing
itself of outside expertise in the development of its
strategic plan. In addition the board has built on continually
improving governance structure and business processes to
oversee the new executive in a new mandate."
-- "Notwithstanding Mr. Brydon's considerable experience and
stellar track record in the early years at BVF, we believe the
company has reached a threshold in its evolution and growth
which requires the business acumen afforded by a seasoned
senior executive (Mr. William Wells) who is experienced and
prepared to take cost-cutting and value enhancing decisions in
the best interests of shareholders, free of past relationships
or loyalties."
-- "Mr. Melnyk was in fact CEO of BVF from December 2001 to
October 7, 2004 and therefore the senior executive responsible
and accountable for company performance during that period and
for which period the litany of litigation that subsequently
ensued was focused. His continuing role as Executive Chair and
then non-Executive Chair afforded him considerable ongoing
influence and responsibility for events that transpired until
his complete departure earlier this year. We believe it is
inappropriate to hold the current Board and Management solely
or substantially responsible for share price performance,
reputational damage or escalating litigation costs over this
period in time."
"We are pleased that RiskMetrics supports the election of
Biovail's director nominees following their careful review of the
facts," said Dr. Douglas Squires, Chairman of the Board of Directors.
"This recommendation reaffirms our strong belief that Biovail's
independent Board and strong management team have a plan to strengthen
our business through a New Strategic Focus. We strongly urge all
Biovail shareholders to vote FOR Biovail's highly qualified Board
nominees on the BLUE proxy card and prevent Eugene Melnyk from placing
his hand-picked, dissident directors on our Board."
Shareholders can read a copy of an investor presentation based on
what Biovail presented to RiskMetrics, by accessing Biovail's website
at www.biovail.com under the "2008 Annual Meeting" link.
RiskMetrics is widely recognized as one of the leading independent
proxy voting and corporate governance advisory firms. Their analyses
and recommendations are relied upon by many major institutional
investment firms, mutual funds and fiduciaries throughout North
America.
The proxy to vote is BLUE, 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. Even if you have already voted using the dissident
proxy, you have every right to change your vote simply by executing
the BLUE form of proxy; it is the later-dated proxy that will be
counted.
*Permission to use quotations from the RiskMetrics report was
neither sought nor obtained
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 thereof, 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.
CONTACT: Biovail Corporation
Nelson F. Isabel
Vice-President, Investor Relations
& Corporate Communications
905-286-3000
SOURCE: Biovail Corporation
