We reported in the March 31 Briefcase how Melnyk recently sent a letter to the board expressing his disappointment with the way the pharma firm was being run. In light of this, he said he was considering selling his stake, taking the company private or shaking up the board.
Well, in a March 13 U.S. Securities and Exchange Commission filingMelynk, Biovails largest shareholder, announced his intention to propose an alternate slate of directors at the companys next AGM. Melynk, who retired as Biovail chair last June, says he does not plan to run for election to the board, or seek a management position. Melnyk also said he plans to mail a proxy circular with details of his choices for directors in due course.
In other Biovail news, the company announcedits 2007 year-end results today, which included a $16 million year-over-year reduction in net income. Revenue was down 21%, year over year. In the release, interim chairman and CEO Douglas Squires said 2007 was a very difficult year for Biovail and its shareholders. Indeed. The stock (TSX: BVF) fell nearly 46% in 2007. As of close March 13, it had fallen another 2%.
How do they plan to bounce back? In 2008 senior management will be undertaking a comprehensive review of the Companys core strategies. Probably a good idea.