Biovail shares rebound on reorganization effort

Embattled Biovail saw its fortunes improve somewhat after announcing that it was reorganizing and eliminating its direct sales group in the U.S. The Toronto-based drug developer said that it had tried to make an acquisition in the U.S. but had failed to find one that met its criteria. In addition, CFO Charles Rowland announced that he was leaving his job to take a position with Endo Pharmaceuticals. Kenneth G. Howling will take his place.

"We could no longer justify a U.S.-based sales and marketing infrastructure that was not properly leveraged," said Biovail CEO Douglas Squires. "Accordingly, management believes that the elimination of long-term debt, a focused and robust investment in research and development, and increasing dividends to our shareholders are more fiscally prudent uses of cash."

- read the AP report on Biovail

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