"An outside observer would conclude that these potentially excessive compensation awards for Messrs. Squires and Wells, especially at a time of poor financial performance, may be related to the appointment of Mr. Wells," the report says. "Even if Mr. Wells' past position in overseeing the committee which determines executive pay and identified the new CEO did not affect his appointment as CEO or the generous contracts for him and his predecessor, the mere appearance of corruption could be damaging."
Bruce D. Brydon, CEO of Biovail during some of its most successful years, who will return as CEO if the Concerned Shareholders' slate is elected, said he wants to get the company back on the right track. Mr. Brydon said: "We believe that Biovail needs a complete change in its board, senior management and direction to avoid even further declines in shareholder value."
Mr. Brydon noted that:
-- In the last year the price of Biovail stock has declined nearly 50%, far worse than the drug industry stock price index.
-- In the last four years, under current management, Biovail has obtained regulatory approval for only one new drug, in sharp contrast to the 17 new drugs that were approved during Mr. Brydon's tenure as CEO from 1995 to 2001.
-- A leading financial analyst who covers Biovail and other drug companies has stated that the new strategic direction announced recently by Biovail's current management, to focus intensive research and development on new chemical entities to treat central nervous system conditions such as Alzheimer's Disease, "is just baffling to us."
All shareholders are urged to vote the YELLOW proxy in favour of the
Concerned Shareholders slate of nominees. Copies of the proxy circular
prepared by the Concerned Shareholders can be obtained via SEDAR
|SOURCE Bruce Brydon|
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