Says He is Postponing Formation of Trimel Pharmaceutical Inc. Until After Decision on the Legality of Biovail AGM IS Finalized TORONTO, June 25
TORONTO, June 25 /PRNewswire/ - Eugene Melnyk and The Concerned
Shareholders of Biovail today said they were pleased that Biovail Corporation
(NYSE: BVF/TSX) shareholders were apparently rethinking their positions with
respect to the proxy contest and that until the legality of the Biovail Annual
General Meeting is adjudicated, Messrs. Melnyk and Bruce Brydon were
postponing the formation of their new pharmaceutical company which would
implement the plan outlined in The Concerned Shareholders proxy circular.
"We are hopeful that this change of heart indicated by the last minute
withdrawal of votes for the incumbent Board means that Biovail shareholders
have seen through the misleading statements of management and the incumbent
board and are evaluating the plans on their merits," said Bruce Brydon, a
Concerned Shareholder nominee. "We are confident that if the Court finds the
BVF was illegally commenced, as we believe it was, and the shareholders have a
chance to evaluate the two plans on their merits, we will prevail."
Mr. Melnyk said that if the court finds against them or if Biovail's
shareholders vote again to keep the incumbent Board and management in power,
he and Mr. Brydon will go forward and implement the plan outlined in The
Concerned Shareholders proxy circular via a new company, which he will name
Trimel Pharmaceuticals, Inc. He said that Bruce Brydon, former CEO of Biovail
and the lead Concerned Shareholder nominee, will run the new company as Chief
Executive Officer.
"Bruce Brydon and I each have about 30 years experience in the
pharmaceutical industry, and we know what works," said Mr. Melnyk.
"We have said from the outset that we had confidence the plan we proposed
would add significant value to Biovail and return the company to its
once-great self," Mr. Brydon stated. "Our goal was to allow all shareholders
to benefit from this plan. If the shareholders vote our slate in, then
Biovail's shareholders will benefit. If they vote to keep the incumbent Board,
then our families, friends and members of The Concerned Shareholders team will
benefit."
"We are willing to put our money where our mouth is," Mr. Melnyk said.
"Our plan, to develop a new strategy in drug development, manufacture and
marketing, is tremendously exciting. I have as much confidence in it as I did
in the concepts that launched Biovail."
According to Mr. Brydon, should he and Mr. Melnyk go forward with this new
venture, the new company will initially concentrate on research and
development and will use innovative measures to bring new drugs to market. It
will focus on an Abbreviated New Drug Application program, Pharma-similars,
Endorse Dispensed Patent Access Products and on Biosimilars.
"Trimel will engender a special entrepreneurial spirit by doing what
Eugene and I have achieved in the past," Mr. Brydon said. "We intend to be
early in an emerging area, partner with innovators within the sector, leverage
its ability to create relationships, review numerous opportunities in order to
determine whether they can be exploited effectively."
"It's up to the court, and if it is held by the court that the Biovail AGM
was illegally commenced as we believe it was then Biovail's shareholders to
decide who benefits from our efforts," he said. "If Eugene and I didn't have
such emotional ties to Biovail, we would just do this ourselves. But it has
never been about us. It has always been about doing something for Biovail's
shareholders."
Mr. Melnyk is the founder and largest shareholder of Biovail Corporation.
According to The Concerned Shareholders proxy circular $10,000 invested in
Biovail in 1995 was worth $829,850 just six years later. Mr. Melnyk said that
same amount invested in Biovail when he founded it would have grown to more
than $2 million by 2001.
Mr. Brydon's 35 year career in commercial healthcare and pharmaceuticals
reflects leadership in all aspects of the pharmaceutical industry, including
biochemicals, clinical diagnostics, surgical supplies, product and technology
development, manufacturing, regulatory affairs, registration, licensing,
marketing and sales. In the late 1980s and early 1990s, Mr. Brydon served as
President and Chairman of Beiersdorf Canada and President and Managing
Director of Boehringer Mannheim (currently Roche).
From January 1995 through November 2001, Mr. Brydon served as Chief
Executive Officer and a Director of Biovail, guiding the business through a
period of more than $4.5 billion in shareholder equity growth and increasing
annual revenue from $19 million to more than $580 million. Under Mr. Brydon's
leadership, Biovail thrived and its stock price grew from approximately $0.67
per share (adjusted for stock splits aggregating 12 for 1) when Mr. Brydon
became President and Chief Executive Officer in 1995 to more than $55.60 per
share before Mr. Brydon's retirement in 2001. In fact, $10,000 dollars
invested in Biovail stock in 1995 was worth $829,850 in 2001.
Certain statements contained in this release constitute forward-looking
statements. The words "may", "would", "could", "will", "intend", "plan",
"anticipate", "believe", "estimate", "expect" and similar expressions as they
relate to the Concerned Shareholders, the Concerned Shareholders' nominees,
the Company or its current or future management, are intended to identify
forward-looking statements. Such statements reflect the Concerned
Shareholders' or the Concerned Shareholders' nominees' current views with
respect to future events and are subject to certain risks, uncertainties and
assumptions. The Concerned Shareholders' nominees assume no responsibility for
any such statements. Many factors could cause the company's actual results,
performance or achievements that may be expressed or implied by such
forward-looking statements to vary from those described herein should one or
more of these risks or uncertainties materialize. Such factors include, but
are not limited to, economic, business, technological, competitive and
regulatory factors.
SOURCE Eugene Melnyk
