Biovail CEO challenged to debate

The Canadian Press

TORONTO — — The man proposed by Eugene Melnyk to head Biovail Corp. challenged Monday the drug company's current chief executive officer to a debate in the latest move in a proxy fight between Biovail's current management and Mr. Melnyk.

In a letter to William Wells, Bruce Brydon suggested the two could debate on Business News Network. Mr. Brydon proposed this would also be broadcast live on the Internet.

"I believe the shareholders of Biovail deserve no less than to hear directly from the two of us — unfiltered by lawyers, consultants, and spin doctors," Mr. Brydon wrote.

A group of dissident shareholders including Mr. Melnyk would pay for all production and related costs.

Mr. Melnyk, the pharmaceutical company's largest shareholder and founder, wants to elect a new board of directors and make Mr. Brydon new CEO at the annual meeting of Canada's largest publicly trade drug maker on June 25 in Toronto.

The company, plagued by legal problems from the launch of its Cardizem LA blood-pressure drug in 2003, has urged shareholders to spurn any slate of directors proposed by Mr. Melnyk and instead support the company's new strategic plan.

Biovail has told shareholders that Mr. Melnyk, the former chairman and CEO, is trying to takeover the company without paying for it by electing a new board of directors.

By placing his handpicked nominees on the board at the company's annual meeting, Mr. Melnyk could exercise effective control over the company, the company has said.

In a statement Monday, Biovail urged shareholders to back its plan.

"We believe your interests are best served by supporting the Biovail nominees to the board," the company said.

Last week, proxy advisory firm RiskMetrics Group recommended shareholders vote for Biovail's director nominees.