BOSTON, July 18 /PRNewswire/ -- Today, Costa Brava Partnership III L.P. submitted three nominees for the Board of Directors of Bradley Pharmaceuticals, Inc. to the company’s Nominating and Corporate Governance Committee. These nominees include Douglas Linton, John Ross and Seth Hamot. Costa Brava is one of Bradley’s largest shareholders, owning 1,607,700 shares, or approximately 9.5%, of Bradley’s outstanding common stock, and has requested that these candidates be considered for inclusion as part of the company’s slate of nominees for election by the common stock holders at the upcoming 2006 annual meeting later in the third quarter of 2006. Should the Nominating and Corporate Governance Committee decide not to accept these three individuals as part of the company’s slate, Costa Brava has notified the company that Costa Brava intends to nominate these individuals for election as directors and to solicit proxies for their election in a contested election. Costa Brava has hired MacKenzie Partners, Inc. to assist in the solicitation of proxies.
Costa Brava’s Seth W. Hamot, who is also a nominee, commented on the candidates: “Costa Brava has selected industry professionals that are tremendously qualified to address the opportunities and challenges facing Bradley. Specifically, Doug Linton’s past responsibilities at Cardinal Health, Inc. will allow him to help manage the product returns and return reserve provisioning which have plagued the company. John Ross’s years at MetaWorks, Inc. will aid Bradley in the effective 2007 implementation, in conjunction with MediGene, of the new Polyphenon E Ointment products. John is also qualified to help Bradley maintain a drug portfolio with increased patent protection going forward. Finally, as one of the largest two holders of Bradley common stock, Costa Brava is committed to helping Bradley generate greater shareholder value.”
Mr. Hamot continued, “Today’s financial and regulatory environment is different than that which existed when the company was much smaller. With Bradley’s financial restatements now in the past, and its recently achieved status as a current filer, Bradley now needs Board leadership better suited to this new environment. While Bradley’s management has built a company with a solid foundation, the challenges facing the company are significant and there are a number of areas best addressed by new directors with relevant skill sets. Over the last two years, issues with both financial control and transparency, both of which the current Board of Directors was charged with overseeing, have obscured a skilled defense of the Adoxa and Keralac brands and an attempt to gain greater patent protection for the Bradley product portfolio. We look forward to our nominees sitting on the Board after the 2006 meeting and working with the company’s Class B directors to help the company improve performance. Costa Brava sincerely hopes that a single slate of directors can be presented to the shareholders for their approval.”
Doug Linton
As the senior purchasing executive at Cardinal Health in the 1980s and early 90s, Douglas Linton played a key role in developing the sophisticated purchasing programs and systems that powered Cardinal’s consolidation strategy from a small regional player to the most profitable of the “Big Three” drug wholesalers. After delivering similar results for two regional drug wholesalers, Doug returned to Cardinal to create their very successful Fee-for-Service program for smaller manufacturers. Since joining ValueCentric, LLC (http://www.valuecentric.com) in November, 2005, he has been consulting with branded pharmaceutical manufacturers on Fee-for-Service strategies and the use of wholesaler sales and inventory data. He graduated with a degree in Economics with honors from the College of Wooster (Ohio) and received an MBA from Carnegie-Mellon University.
John Ross
John Ross was a co-founder, investor, and board member of MetaWorks Inc. MetaWorks, formed in 1993, is a healthcare information management business providing clients with state-of-the-art statistical techniques, particularly meta-analyses and cross design syntheses, to evaluate clinical data. MetaWorks’ systematic reviews and meta-analytic services can be employed to support regulatory approvals and product claims, establish competitive knowledge, assist management in making strategic clinical research decisions, and establish pharmacoeconomic claims.
Clients of MetaWorks include pharmaceutical and device firms, hospital chains, as well as regulatory, education and research agencies of domestic and international governments. In 1997 MetaWorks was the only private, for profit organization designated by the Agency for Healthcare Research and Quality (AHRQ) as an Evidence-Based Practice Center (EPC). Earlier in 2006, Mr. Ross sold his interest in MetaWorks to a larger, global provider of evidenced-based services and information to the pharmaceutical and life science industries. He graduated with a Bachelors of Commerce from McMaster University in Ontario, Canada, and received an MBA from Boston University. Mr. Ross also completed Harvard Business School’s Owner/President Management (OPM) Program.
Seth Hamot
Seth Hamot has been the managing member of the Costa Brava partnerships since 1997. Prior to that time he was one of the partners of the Actionvest entities. Both Costa Brava and Actionvest are investment funds that focus on turnaround situations, defaulted and distressed debt, and complex litigation. He has served as a director of distressed firms and on creditor committees of bankrupt companies. Mr. Hamot graduated with a degree in Economics from Princeton University.
SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS RELATED TO SOLICITATION OF PROXIES BY COSTA BRAVA PARTNERSHIP III L.P. AND ITS AFFILIATES FROM THE STOCKHOLDERS OF BRADLEY PHARMACEUTICALS, INC. FOR USE AT ITS ANNUAL MEETING (A) WHEN AND IF THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION, INCLUDING INFORMATION RELATING TO THE PARTICIPANTS IN ANY SUCH PROXY SOLICITATION, AND (B) WHEN AND IF COMPLETED, A DEFINITIVE PROXY STATEMENT AND A FORM OF PROXY WILL BE MAILED TO STOCKHOLDERS OF BRADLEY PHARMACEUTICALS, INC. AND WILL BE AVAILABLE AT NO CHARGE AT THE SECURITIES AND EXCHANGE COMMISSION’S WEBSITE AT HTTP://WWW.SEC.GOV. INFORMATION RELATING TO THE POTENTIAL PARTICIPANTS IN A POTENTIAL PROXY SOLICITATION WILL BE CONTAINED IN EXHIBIT 2 TO THE SCHEDULE 14A FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BY COSTA BRAVA PARTNERSHIP III L.P. ON JULY 18, 2006. THE SCHEDULE 14A WILL BE AVAILABLE AT NO CHARGE ON THE SECURITIES AND EXCHANGE COMMISSION’S WEBSITE AT HTTP://WWW.SEC.GOV.
Costa Brava Partnership III L.P.
CONTACT: Larry Dennedy, +1-212-929-5239, or Bob Sandhu, +1-212-378-7061,both of MacKenzie Partners, Inc. for Costa Brava Partnership III L.P.
