Biovail

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Biovail TSX: BVF NYSE: BVF is Canada's largest pharmaceutical company, operating internationally in all aspects of pharmaceutical products. Its major production facility is located in Steinbach, Manitoba.

[edit] Corporate governance

Current members of the board of directors of Biovail are: Wilfred Bristow, Michael Van Every, Eugene Melnyk, Laurence Paul, Sheldon Plener, Jamie Sokalsky, Douglas Squires, and William Wells.

[edit] Accounting Troubles

Near the end of 2002, Biovail acknowledged that it had employed aggressive accounting for the "Teveten transaction." Teveten was a hypertension-relief product, and Biovail had licensed the U.S. rights to it from Solvay Pharmaceuticals for US$94 million. It marked the whole of this price as the value of the license as an asset on its balance sheet. A more conservative approach would have subtracted $20 million (the marketing allowance) from that amount, listing a $74 million asset on the balance sheet.

What made the balance sheet look better, had negative consequences for the income statement. Biovail committed to an additional $1 million per year amortization expense over the period of the license, 2004 to 2021.

The company's accounting for its transaction with GlaxoSmithKline regarding the research, development, and co-promotion of Wellbutrin Once-Daily has also become grist for controversy.