Biovail to pay $10M over SEC charges

Canadian drugmaker Biovail has reached a settlement with the US Securities and Exchange Commission in respect of an investigation of the company and certain current and former officers. The investigation related to specific accounting and financial disclosure practices that occurred between 2001 and 2003 and resulted in a civil complaint filed by the SEC this month. Biovail has entered into a Consent Decree with the SEC in which it has not admitted to the civil charges contained in the complaint, but has agreed to pay $10.0 million to fully settle the matter. As part of the deal, the drug firm has also agreed to an examination of its accounting and related functions by an independent consultant.

The current and former executives, who include Biovail's founder and former chief executive Eugene Melnyk, also the firm's largest shareholder, continue to face separate charges, and the Ontario (Canada) Securities Commission has confirmed that it has issued a Notice of Hearing against the four individuals referred to as well, as the company, in respect of substantially the same matters as were described in the SEC complaint. This is set to take place on April 22.