Who’s a hockey puck?

Eugene, who founded the pharmaceutical company, will retire on June 30, it was announced today, just 24 hours after top execs received Wells Notices from the Securities and Exchange Commission.

Canada’s biggest publicly traded drugmaker, said the notices sent to Melnyk and Ken Howling, the cfo, relate to fiscal 2003 accounting, a 2002 acquisition and procedures for accounting for revenue. These are similar to issues raised in notices sent to the company on Monday.

The SEC has also indicated its intention to recommend enforcement action against Melnyk - who owns the Ottawa Senators NHL franchise - concerning trading and reporting ownership positions in Biovail securities.

Melnyk said in a prepared statement that he made the decision to retire over the last several months and would formally announce his decision at the company’s general meeting in Toronto today. He said he informed the board of directors on Tuesday night of his retirement.

“We fully respect and understand his desire to spend more time with his young family, and his desire to dedicate more time and energy to his contributions in education, childhood development, healthcare and sport,” said ceo Doug Squires in a statement.

The SEC investigation relates to a company warning of a revenue shortfall in the third quarter of 2003, an October 2003 truck accident that destroyed a shipment of key antidepressant drug Wellbutrin XL, and its disclosure of the accident’s impact on 2003 earnings.

Further reading…
Reuters;
Melnyk statement;
Biovail statement on Wells Notices sent to Melnyk;
Biovail statement on Well Notices to the company.
[tags]Biovail, Eugene Melnyk[/tags]