News Release
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Ontario Securities
Commission
20 Queen St. W.
Box 55, Suite 1900
Toronto, ON M5H 3S8
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Commission des valeurs mobilières de l'Ontario
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FOR IMMEDIATE RELEASE
March 24, 2008 |
OSC Commences Proceedings in Relation to Biovail Corporation, Eugene N. Melnyk,
Brian H. Crombie, John R. Miszuk and Kenneth G. Howling
TORONTO – The Ontario Securities Commission ("Commission") today issued a Notice of Hearing and related Statement of Allegations against Biovail Corporation, Eugene N. Melnyk, Brian H. Crombie, John R. Miszuk and Kenneth G. Howling.
Staff of the Commission’s allegations involve four central issues:
1. the failure to account properly in Biovail’s 2001 and 2002 financial statements for a special purpose entity that Biovail created called Pharmaceutical Technologies Corporation;
2. the improper recognition of revenue relating to a purported “bill-and-hold” sale of one of Biovail’s drugs, Wellbutrin XL, in June of 2003;
3. the failure to correct and disclose an error in Biovail’s 2003 financial statements relating to a foreign currency denominated obligation; and
4. misleading or untrue statements made in press releases, investor meetings and an analyst conference call concerning the reasons for Biovail’s earnings miss in October of 2003.
Staff of the Commission further allege that Biovail provided misleading responses to questions that Staff posed regarding three of these issues in the course of a continuous disclosure review conducted in 2003 and 2004.
The first appearance in this matter will be held at 2:00 pm. on Tuesday, April 22, 2008 in the large hearing room of the Commission located on the 17th Floor, 20 Queen Street West, Toronto. The purpose of this first appearance is to set a date for the hearing.
A copy of the Notice of Hearing and Statement of Allegations is made available on the Commission's website (www.osc.gov.on.ca).
Staff of the Commission acknowledge the assistance and cooperation of the U.S. Securities and Exchange Commission in this matter.
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416-593-8120
Laurie Gillett
Manager, Public Affairs
416-595-8913
Carolyn Shaw-Rimmington
Assistant Manager, Public Affairs
416-593-2361
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