Hanky Panky At Biovail’s Barbados Company – Pharma Tech

There is a reason why many companies choose Barbados to establish “special” subsidiaries and funds. Our country has a different balance between oversight and legitimacy. Not so much of the former, but hopefully enough of the latter.

Sometimes though, we wonder if the balance gets a little too skewed.

From the New York Post…

Canadian drug maker Biovail disclosed that federal prosecutors from the Eastern District of New York are investigating issues related to its accounting and stock trading going back to 2001.

Biovail, maker of antidepressant drug Wellbutrin, disclosed the investigation deep within an earnings release.

While the Toronto-based company did not elaborate on what the feds are seeking, it did note the Securities and Exchange Commission focused the federal probe on the same issues that are part of an ongoing investigation.

(snip)According to Biovail’s 10-K last year, the SEC was seeking information on “the company’s accounting and financial disclosure practices.”

The filing also noted that the SEC is examining Biovail’s 2002 purchase of “a corporate entity.”

That is a reference to Pharma Tech, a Barbados-based research and development company that The Post last year reported had a very light footprint in the world of drug research.

Purchased by Biovail for $18.8 million, Pharma Tech has almost no paper trail of products, research and development, or staff. It shared the same Barbados address as Biovail…

… read the entire article at the New York Post (link here)

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16 Comments

Filed under Barbados, Business

16 responses to “Hanky Panky At Biovail’s Barbados Company – Pharma Tech

  1. J.Payne

    The principal owner of that company actually lives in Barbados though. You might have heard the name, Eugene Melnyk [ http://en.wikipedia.org/wiki/Eugene_Melnyk ].

    He owns the Ottawa, Canada hockey team (The Ottawa Senators) and also Bert’s Bar down– by Rockley.
    http://www.bertsbarbados.com/

    De man is one of Canada’s big business men. He have one set of horses named after places all over Barbados. Becareful like C.O.W. he’s local and might come on here and respond to yuh. lol

  2. National Park

    its good to have successful Canadians with lots of money to help Barbados other than buying bars and racing horses.

    Since he had a horse called Graeme Hall maybe he can help the Friends of Graeme Hall raise funds for the National Park?

  3. Rumplestilskin

    ‘High-level’ financial structures are very often worked out with lawyers and taxation consultants, who advise on an efficient and legitimate structure.

    However, such structures may be open to interpretation and thus in some cases challenged by such regulatory authorities as the SEC.

    While I personally know nothing about Biovail, I suspect that this is simply such a case.

    Allegedly, Mr.Melnyck does live here and loves the island to the extent that most, if not all his horses are named after Barbados, giving us quite wide advertising, free.

    Regarding the articles reference to hedge fund managers and his challenge to them, go read up on short-selling of stocks.

    Hopefully, after reading up on that ‘little’ issue, you’ll have something to chew on for a few days, if not weeks.

    Short-selling, is a method of making bucks on stock in the decline. If, as some allege it is done intentionally, such would be rather disgusting.

    Thus, Biovail’s charges re some short-selling his stocks should be carefully examined, after all, he is not the only one making these charges (other companies too).

    Where there is smoke…..

    While the point of the stock market IS profit, if short selling occurs with some sort of collusion in reporting of stocks by analysts would amount to fraud on the part of those short-selling the stocks.

    So, as some say, there are three sides to every story.

  4. Rumplestilskin

    To clarify above – Short-selling, is a method of making bucks on stock in the decline. If, as some allege it is done intentionally AND with collusion on the part of reporting analysts, such would be rather disgusting.

  5. Crane

    Mr.Melnyk lives at Boxill’s House, right across the collapsing Crane Beach ‘road’ from our one local billionaire
    (God bless their little cotton socks, the both of them)
    and has done a great job of restoring Boxill’s House.

  6. ?

    Doesn’t Mr. Melnyk own the piece of land opposite the beautiful new beach at Welches, Ch.Ch. west of Oistins?

    The beach is such a lovely “window to the sea” unfortunately there is very little parking space for the public. Perhaps Mr. Melnyk might consider including some space for public parking in his plans for the land.

  7. Straight talk

    Coincidentally, and fortuitously for Mr Melnyk, the lovely beach was extensively beautified by GoB, just after he purchased the land for redevelopment.

  8. Anonymous

    I beg your pardon Straight talk. The beach was CREATED not beautified by the tax payers of Barbados!

    Prior to the beach being created the sea used to come up over the road during some hurricane seasons.

  9. EcoFreako

    Yes, you’re quite right, Anon.
    That beach is very new; it was created, but make no mistake …when the sea is ready to take it back, it shall do so,
    so I wouldn’t invest no big lotta $$$ based on that cute-lookin beach.

    Beaches come, beaches go.
    Ask Ivan and Emilie!

  10. Warrior

    #
    ****Anonymous

    I beg your pardon Straight talk. The beach was CREATED not beautified by the tax payers of Barbados! Prior to the beach being created the sea used to come up over the road during some hurricane seasons.*********************

    Now that you have created such a beautiful beach one place you disturb one in another place. just check Dover beach

  11. J. Payne

    Not only– are his horses branded after Barbados but if you even goto the huge stadium in Ottawa he has all kinds of Barbados paraphernalia I’m told hanging from the rafters.

    Anyone hear about the big hockey match he had where all of his hockey players skated out onto the ice and thing with mini Barbados flags?
    It was in the Advocate.

    SELL OUT CROWD TREATED
    Web Posted – Mon Feb 20 2006
    http://web.archive.org/web/20060506010502/http://www.barbadosadvocate.com/NewViewNewsleft.cfm?Record=24552

    (quote)
    The campaign was kicked off with a promotional night on February 9, at Scotiabank Place in Ottawa, Canada, home of the National Hockey Leagues (NHL), currently third ranked team the Ottawa Senators. The team is owned by Canadian businessman Eugene Melnyk, joint-owner of the popular South Coast establishment, and resident of Barbados. The objective of what was entitled “Barbados Night”, was to create a unique fan experience on game night, which would aid in supporting the Barbados Government and the Barbados Tourism Authority (BTA) in their mandate to promote and further enhance tourism to the island of Barbados.

    The event, which had a sold out attendance of 19 604, featured a Barbados themed décor at each entrance, with Barbadian Neil Sealy’s Quartet at the main entrance; a special videoboard welcome from Eugene Melnyk and Bert Inniss; 60-second “All About Barbados” feature, produced in-house, presenting a fun, fast look at Bajan history, culture, and personalities; a 30 second video spot from the Barbados Tourism Authority, promoting the island; along with in-game music tailored to the match the Barbados theme.

    In addition, there was the holding of Bajan flags by Minor hockey players for an on-ice skate before the game; Barbados High Commissioner Glyne Murray participated in a ceremonial puck drop; there was the random distribution of 50 Senators beach shirts and 50 Mount Gay Rum hats throughout the night; Videoboard clips featuring Sens fans in Barbados chanting “GO SENS GO” on the beach; and finally, a lucky seat draw for a trip for two to Barbados, courtesy of Eugene Melnyk, Barbados Tourism Authority, Accra Beach Resort and Hotel, Bert’s and Air Canada.

    From all reports, the event was a huge success, and is expected to be the first of many. Melnyk stated that, “This recent event in Ottawa is a great example of the unique and creative ways I can help support the Barbados Government and the Barbados Tourism Authority in promoting the island in Canada. We certainly hope to partner with them on future tourism initiatives.” It can be said therefore, that the partnership between Bert’s, the Ottawa Senators, and the BTA, therefore augurs well for the future development of the local tourism industry, in relation to the Canadian market.[-End]

  12. La De Da

    Maybe the GoB can get (or require) Mr. Melnyk to give the touted 25% of his development land at Welches, Christ Church. (which is directly across the road from the beach that the taxpayers just paid to re engineer and was recently hoarded around with a plywood fence) so that the public can again park there to go to the sea like they have been doing for years. It is rumoured that the next beach slated for similar re engineering is the one at the Crane under Boxhill House. INTERESTING!!!!

  13. David

    If that were to happen say goodbye to Beachy Head, Harrismith and Bottom Bay.

  14. David

    Or would it be Foul Bay?

  15. David

    You make a beach there, and then (all of a sudden), there goes Sandy Beach! Boy, that was weird!

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