Premium Essay

Sub Issue and Recommendation for Biovail Case

In: Business and Management

Submitted By aziey
Words 486
Pages 2
Sub issue:
Other than having fraud conducting of revenue recognition, Biovail Corporation also has overestimated the amount of Wellbutrin XL on the truck. The company estimated that revenue associated with this shipment was in the range of $10 million and $20 million and confirmed that the manufacturing cost value of this shipment had been fully insured. The trooper estimated that the truck was about one-quarter full. After the investigation done, the analyst stated if there had been $20 million worth of Wellbutrin XL pills on the truck, it would have been full or nearly full.
In addition, Biovail Corporation also has expired of Legacy product patents. The Legacy product portfolio included the well-known brands Cardizem CD, Ativan, Vasotec, Vaseretic and Isordil. These products were not actively promoted by Biovail and represented non-core assets for which patent protection had expired. However, sales of Cardizem CD have represented 40% of product sales at Biovail.
Biovail Corporation also having problem in report the revenue because it based on channel stuffing. Channel stuffing is the action sends the distributor more product than they are able to sell in order to increase earning. Distributors hold the excessive amount of product. The conflict of the self-interest is the one of the issue that will be arise as the CEO of the company has the share in Biovail Corporation.

Recommendation
Have the code of ethics. Biovail Corporation should have the code of ethics in it management. In calculating revenue, FOB structure of the product should have been understood in the deep. The overestimated of the product quantity should be avoided because it can lead to bad reputation of Biovail Corporation. The overestimated of quantity of product in the truck that are involved in accident has make the public look at the Biovail Corporation as the firm that are not have

Similar Documents

Premium Essay

Econometrics

...CORPORATE SOCIAL RESPONSIBILITY IN THE PHARMACEUTICAL INDUSTRY: BETWEEN TREND AND NECESSITY by Cecile Oger BSc. (Honours) Chemistry with Business Administration Kingston University London, UK, 1995 A thesis presented to Ryerson University In partial fulfillment of the requirements for the degree of Master of Business Administration In the program of Master of Business Administration Toronto, Ontario, Canada, 2009 © Cecile Oger 2009 Library and Archives Canada Bibliothèque et Archives Canada Published Heritage Branch Direction du Patrimoine de l’édition 395 Wellington Street Ottawa ON K1A 0N4 Canada 395, rue Wellington Ottawa ON K1A 0N4 Canada Your file Votre référence ISBN: 978-0-494-59035-5 Our file Notre référence ISBN: 978-0-494-59035-5 NOTICE: AVIS: The author has granted a nonexclusive license allowing Library and Archives Canada to reproduce, publish, archive, preserve, conserve, communicate to the public by telecommunication or on the Internet, loan, distribute and sell theses worldwide, for commercial or noncommercial purposes, in microform, paper, electronic and/or any other formats. . The author retains copyright ownership and moral rights in this thesis. Neither the thesis nor substantial extracts from it may be printed or otherwise reproduced without the author’s permission. L’auteur a accordé une licence non exclusive permettant à la Bibliothèque et Archives Canada de reproduire, publier...

Words: 28145 - Pages: 113