Biovail Corp. has divided its businesses into three units, part of a previously announced restructuring designed to strengthen its focus in key markets.
The three divisions will be: Biovail Drug Delivery, Biovail Pharmaceuticals U.S., and its Canadian unit, Biovail Pharmaceuticals Canada. The reorganization is effective immediately.
The Mississauga-based drug maker also unveiled some executive changes, saying it has hired Greg Gubitz as senior vice president of Biovail's new spinoff company, Crystaal Pharmaceuticals.
Mr. Gubitz, a venture capitalist who was the chief operating officer at MDS Capital Corp. "will assume a leadership role in the proposed spin-off into a separate entity," Biovail said.
The company also announced the departure of Dr. Gregory Szpunar, senior vice-president of research and development and chief scientific officer, effective March 10. Dr. Szpunar is going to take on a "senior position with a large pharmaceutical company," Biovail said, adding that it plans to name his replacement soon.
Biovail said in November that it planned to spin off its legacy line of non-core products, which include Cardizem CD, Ativan, Vaseretic, Vasotec, Isordil and Tiazac in the U.S. and Cardizem CD in Canada, to existing shareholders.
As a separate publicly traded company, Crystaal Pharmaceuticals would acquire additional drugs and distribute most of its cash flow to shareholders as dividends.
Shares of Biovail fell 19 cents or 0.65 per cent to $29.03 on the Toronto Stock Exchange Tuesday morning. The stock has rallied 49 per cent in the last year.
Biovail's chief executive Dr. Douglas Squires said Tuesday's realignment "provides the company maximum flexibility and clarity of performance for its business drivers."
Roma Luciw