Eugene Melnyk said Thursday he may try to take over Biovail — the drug company he founded 27 years ago — saying he's he's not happy with the performance of the people now running the company.

"I continue to believe in Biovail, but it saddens me to witness the company's decline under its current management," he wrote in a letter sent to the Biovail board.

Biovail 3-month chart

Melnyk is Biovail's largest shareholder, with 18.8 million shares, or about 11.6 per cent of the company.

In the letter, Melnyk said he's now exploring "various options," including buying the remaining shares of Biovail with one or more partners, selling all or part of his Biovail shares to a third party, or trying to change the membership of the board.

Melnyk said he met with Biovail's chairman and lead director in December.

"In particular, I indicated my serious concerns about the ineffective exploitation of the depth and value of the company's world-class drug delivery technology," he wrote.

But he said he didn't get an "appropriate" response from the board about his efforts to boost shareholder value.

Biovail stock — which has been hovering near a 52-week low — shot up by six per cent following the Melnyk announcement.

Melnyk resigned as a director of Biovail Laboratories International S.R.L. and Biovail Holdings International S.R.L. on Monday.

He stepped down as Biovail's chairman last year, saying he wanted to spend more time with his family and work on other projects. At the time, he paid $1 million to settle OSC allegations of inadequate disclosure in trades of Biovail shares.