Biovail Pharmaceutical Analysis

1. Statement of problem or problem(s) facing the firm.
Biovail Corporation was one of the Canada’s largest publicity trade pharmaceutical companies. Biovail Corporation released guidance for the quarter ended September 30, 2003 indicating that revenues would be in the range of $ 215 million and earnings per share of $0.35 to $ 0.45 both below previously issued guidance, they associated the loss of revenue and income with a significant in-transit shipment loss of Wellbutrin XL, to a traffic accident where the truck which carrying the shipment was involved near to Chicago, Illinois. The Company estimated that revenue associated with the shipment was in the range of $ 10 million to $ 20 million. After some research and investigation was found that the true value of the merchandise in the truck was approximately $ 5 million.

This accident had no effect on the quarter ended September 30, 2003 earning like Biovail intentionally and falsely attributed. The Biovail Corporation executives were obsessed with meeting quarterly and annual earnings they overstated earning and hid losses in order to deceive investor and created the appearance of achieving goal. Because these issue they were involved in a very serious unethical misconduct and chronic fraudulent conduct, including financial report fraud and other intentional public misrepresentations. 2. Summary of the situation/ analysis of issues

Biovail Corporation SWOT Analysis
Strengths
• Biovail had applied advanced drug-delivery technologies to improve the clinical effectiveness of medicines •Biovail commercialized its products in Canada and internationally •Biovail’s core competency was its expertise in the development and large-scale manufacturing of pharmaceutical products.

Weaknesses
•Poor managerial strategy to meet goals.
•Managerial unethical conduct and not reliability data enter accounting record
• Bad reputation due unethical conduct
• Lack of competitive strength

Opportunities
•Searched and develop new product
•Develop new technology and improve production to meet goal.
•Improve quality of product to recover credibility on the market

Threads
•Possibility of internal capability to meet goal
•Biovail market demand for their product
•Economy situation and product price assessable to customer

3. Strategic alternatives and recommendations for strategy. Since Biovail Corporation major problem is the bad managerial production and marketing strategy and with their unethical conduct per their board of director, they must change their board of directors for other personals with better attitude, ethic behavior and professional with can take decision and avoid any unethical decision that their CEO can take. Biovaild must continue improving and develop their actual strategy of research, manufactory, distribution, and marketing in order to comply with their goals. Biovail must stable a better Quality system to offer quality product in order to retain existing customers and attract new customers, like stable and internal and external auditor system.